Hamster Kombat, Catizen Tokens Plunge 60% Amid Viability Concerns
Jeffrey Gogo is a journalist with 20 years of experience in business, finance, cryptocurrency, and climate change news and analysis.
Elena is the Features Lead at Cryptonews.com. With a Master's degree in science journalism from City University, London, she is passionate about exploring complex topics in the world of technology.
Key Takeaways:
Hamster Kombat and Catizen, two of Telegram’s most popular tap-to-earn games, have seen their token values plunge by between 50% and 60% just days after the projects launched on The Open Network (TON).
The dramatic price decline feeds into the narrative that Telegram crypto games and their related airdrop tokens lack long-term viability because most offer little utility beyond rewarding players, analysts say.
According to data from CoinMarketCap, Hamster Kombat’s HMSTR token has slumped 54% to $0.0046 just one week after the token was launched on Sept. 26. As of this writing, the price of HMSTR is up 1.6% on the day.
The Hamster Kombat player is a crypto exchange CEO persona who must grow his company’s stock by tapping to upgrade assets and hiring top talent. As Cryptonews previously reported, the game’s airdrop was marred by controversy, with accusations of unfair distribution.
Of the 300 million users claimed by Hamster Kombat, only 131 million received the HMSTR airdrop. Some 2.3 million players were banned for cheating, and the majority of them did not meet the criteria.
Users took issue with a last-minute announcement that 11.25% of the 60 billion HMSTR tokens allocated to the community for Season 1 would be locked up for 10 months, preventing any sales of the token in that period.
Other points of contention included the small size of the token allocation to regular users, the
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