Hamster Kombat meltdown continues, token hits record low

Hamster Kombat, the popular Telegram tap-to-earn game, is struggling as its token continues crashing to new lows.

Hamster Kombat (HMSTR) token plunged to a record low of $0.0039, 70% lower than its all-time high of $0.0132. Its circulating market cap has dropped to $253 million, while its fully diluted valuation has slipped to $394 million.

The token’s sell-off occurred even after it received listings from some of the biggest centralized exchanges in the industry, including top-tier exchanges like Binance, OKX, Bybit, and Bitget.

The decline has coincided with the plunge of other tap-to-earn tokens. Notcoin (NOT), the largest tap-to-earn token, initially rose to $0.029 in June but then slumped by 74% to $0.0074.

Catizen (CATI), the biggest Telegram gaming token, has also slumped by 63% from its post-listing high. Other similar tokens like Pixelverse and DOGS (DOGS) have all plunged by over 60%. 

The fall of ‘to-earn’ tokens

Historically, most “to-earn” tokens tend to crash over time. For example, play-to-earn cryptocurrencies like Decentraland, The Sandbox, and Axie Infinity have retreated by double digits from their all-time highs.

Move-to-earn platforms showed a lot of promise when they were launched. At its peak, Sweatcoin was one of the most downloaded apps in the Google and Apple app stores. It had over 50 million users who accumulated tokens by simply walking or running. However, Sweat Economy, its token, has dropped by over 93% from its all-time high. StepN’s GMT has also tanked.

The challenge for Hamster Kombat is how to keep the community engaged as its token implodes. According to the developers, HMSTR holders who decide to keep their tokens in the game instead of withdrawing will receive a token boost when the second season starts.

Hamster Kombat’s issue is that many tokens are still locked, meaning current holders will likely see substantial dilution in the long term. With 63.3 billion tokens in circulation, 37 billion are still locked.

Token unlocks, especially when there is no burning mechanism, lead to dilution as more tokens are added to circulation.

The sell-off has also been fueled by weak sentiment in the crypto industry. Bitcoin has remained between $60,000 and $62,000, while most altcoins have retreated.


Hamster Kombat
Hamster Kombat price chart | Source: TradingView

Therefore, the Hamster Kombat token may bounce back if Bitcoin and most altcoins stage a comeback. Additionally, it has formed a falling wedge on the four-hour chart, a highly popular bullish sign.

Source: https://crypto.news/hamster-kombat-meltdown-continues-token-hits-record-low/