Andre Cronje proposes an innovative framework with FTM to make meme coins safer

Andre Cronje, co-founder of Fantom, introduced a revolutionary strategy in spring 2024 for fairly and securely issuing meme coins on the FTM network. The proposal aims to solve chronic issues plaguing the sector, such as teams dumping tokens after generating hype on social media, removing liquidity, and leaving investors with significant losses.

The meme coin market exploded in popularity in recent years, generating billions in transactions and profits for early adopters. However, the phenomenon also brought concerning risks: developers with access to alter token codes, coordinated dumping of positions, and a lack of legal safeguards to protect investors.

Andre’s Structured Solution for the FTM Universe

Fantom’s co-founder proposed a framework that places the Fantom Foundation, a non-profit organization responsible for blockchain development, as the key signatory controlling the meme token liquidity pools. This approach creates multiple layers of verification and security.

Token distribution would follow this model:

• 5% for operational expenses: Locked in a multisig requiring signatures from 2 project members and at least 1 Fantom Foundation member. This ensures unilateral changes are impossible.
• 85% for liquidity: Placed in an FTM/token LP pool controlled by multisig, with an initial supply of 100,000 FTM from any Fantom-based exchange.
• 10% for marketing: Allocated for exchange listings, also under multisig control with multiple signature requirements.

An additional mechanism further protects the system: when FTM in the liquidity pool reaches 2,000,000 FTM, the initial 100,000 FTM will be removed to cover initial costs, and the remaining LP tokens will be burned.

Why the Multisig Framework Is a Breakthrough

Using multisig (multiple signatures) eliminates the possibility of harmful unilateral actions. Unlike traditional meme coins, where a developer can drain liquidity or change parameters irrevocably, Andre’s structure requires consensus among community and foundation members. This distribution of power creates aligned incentives: no one has motivation to sabotage a project everyone depends on.

The mechanism also addresses the dilemma faced by teams promoting meme coins: instead of unlimited rewards, there’s a cap of 5% of tokens with control locks, reducing temptations for exit scams.

Fantom Positions Itself While Other Blockchains Follow

Andre Cronje is not alone in recognizing the potential of meme coins, now often called “cultural coins.” The Avalanche Foundation, responsible for the Avalanche network, announced a dedicated fund that invested directly in meme coin growth, acquiring stakes in five tokens in March 2024. This move marks a strategic shift in the industry.

Meanwhile, BNB Chain launched a $1 million prize aimed at developers of meme coins demonstrating genuine growth potential. At the same time, the Solana and Base ecosystems continue to record massive transaction volumes involving meme coins, generating millions in profits.

The key difference in Andre’s FTM plan is structural: while other blockchains invest in or reward projects after the fact, Fantom offers a preventative framework that discourages misconduct from the outset.

Market Reaction: Bitcoin Recovers to $68K While Altcoins Follow

Recently, the market responded to a strong short squeeze. Bitcoin surged to near $68,100 during the analyzed period, up 3.43% in 24 hours. Altcoins actively participated in this movement:

• Ethereum (ETH) rose 6.92% in 24 hours
• Solana (SOL) increased 6.96%
• Dogecoin (DOGE) jumped 8.23%
• Cardano (ADA) gained 10.44%

Analysts like Joel Kruger from LMAX Group suggest the move appears primarily technical, driven by short position liquidations and lack of liquidity, rather than strong fundamental catalysts. Joshua Lim from FalconX noted that some funds are chasing the rally, rotating capital into volatile altcoins and derivatives.

Critical resistance levels for Bitcoin remain around $72,000 and $78,000. A sustained break above these levels would signal a stronger structural bullish trend less dependent on technical movements.

Implications for the Future of Meme Coins on FTM

Andre Cronje’s proposal marks a turning point: blockchains are shifting from ignoring meme coins to actively managing them with security frameworks. While Avalanche and BNB Chain focus on direct investment, Fantom has chosen a preventative structure that protects investors from the start.

The central question now is whether this model will be adopted as a standard by other projects and set a precedent for greater accountability in the cultural coin sector. With Andre Cronje leading this discussion via FTM and the Fantom Foundation, the network’s ecosystem gains structural legitimacy in a segment that has historically suffered from governance issues.