Recent Token Launches on Telegram Experience Sharp Declines

Just days after launching their tokens on The Open Network (TON), two prominent Telegram games. Hamster Kombat and Catizen, have seen significant price drops, stirring concerns over the volatility and sustainability of gaming tokens in the crypto market.

Hamster Kombat’s Rocky Start

HMSTR token, which was eagerly anticipated by its player base of 300 million, experienced a tumultuous start. Launched last Thursday, the token initially reached prices as high as $0.1, according to CoinMarketCap. However, discrepancies among pricing sources have been noted, with CoinGecko recording a peak at just $0.072. As of now, HMSTR has plummeted by 53%, falling to $0.047. Amidst broader market declines influenced by geopolitical tensions.

The drop was further exacerbated by player dissatisfaction, with many expressing disappointment over smaller-than-expected token allocations from the airdrop.

Catizen Also Faces Downtrend

Similarly, Catizen’s CATI token has not fared much better. Since its launch on September 20, the token has dropped 58% to a current price of $0.47, with an 18% decline just today. It had initially peaked at $1.11 on its launch day. Echoing the volatility seen with Hamster Kombat’s token.

Broader Trends in Gaming Tokens

This year has been challenging for gaming tokens across the board. Notcoin (NOT), for instance, has seen a dramatic 74% decrease from its peak in June. The trend is not isolated to Telegram-based games but is pervasive throughout the crypto gaming sector.

The Volatility of Gaming Tokens

Gaming tokens are known for their extreme volatility, often mirroring the fluctuations seen with meme coins. This volatility can be attributed to the nascent nature of the crypto gaming market and possibly a lack of investor confidence in the longevity and stability of these platforms.

Outlook for Telegram Games

Despite the initial excitement and substantial user engagement through airdrops and token launches. Telegram games like Hamster Kombat and Catizen have yet to demonstrate enduring value and appeal beyond these events. Both games have outlined ambitious plans for the future, including new game launches and additional token rewards, aiming to sustain interest and stabilize token prices.

The sharp price declines following the token launches on Telegram underscore the inherent risks and instability in the crypto gaming market. Investors and players alike are cautioned to consider these factors before participating in game-related token offerings, as the sector continues to evolve and adapt to market dynamics.