Hamster Kombat, Notcoin, Catizen, DOGS and other Telegram airdrops take an unexpected turn as their tokens face a steady downward trend. Notably, these tap-to-earn platforms have recorded exponential growth in 2024, accruing millions of users globally.
While Hamster Kombat and the others have completed their airdrops events and are listed on exchanges, their tokens’ values keep plummeting. Hamster Kombat ($HMSTR), one of the largest Telegram games, crashed from a high of $0.010 to less than $0.005 presently.
Catizen ($CATI), another top Telegram airdrop, faced the same trend from a high of over $1.10 to less than $0.5. Accordingly, Dogs, Notcoin, Pixelverse and other Telegram game tokens face similar trends.
Why Hamster Kombat, Catizen, DOGS and Others Took a Downward Turn
These Telegram-based tap-to-earn platforms did not perform as much as users’ expectations. Also, new games now follow a similar pattern, with some failing dismally.
To begin with, most users who accumulated $HMSTR, $CATI and other tokens during their mining phases immediately sold them at their airdrop events. Such dumping on the exchanges where these tokens were listed contributed to their values plummeting.
Players holding their accumulated tokens reduce their liquidity causing their value to shoot up. However, the reverse was the case, causing a rapid decline in the market cap and valuation of these tokens.
Also, there’s the risk of future dilution with these tokens due to locked-up fractions of their max supply. For instance, $CATI with a max supply of 1 billion tokens has only 305 million in circulation.
Therefore, releasing the huge locked-up fraction would “dilute” the value of the existing tokens of holders. Accordingly, this would cause token inflation due to the increased supply and a corresponding drop in the token’s value.
In Conclusion
Their success as gaming bots, accumulating millions of users globally did not reflect in their token’s value. Meanwhile, they could continue plummeting as users abandon 1 after dumping it during an airdrop and move to the next Telegram mini-game.
Disclaimer: Do not take any information on this page as financial advice. Always do your own research.