Hamster Kombat and Catizen Tokens Experience Major Price Drop
Hamster Kombat Token Falls 50% And Catizen Token Drop 60% Since Launch
Several popular tap-to-earn games, including Hamster Kombat, Catizen, DOGS, and Notcoin, are experiencing significant declines in token value. These games, known for their simple gameplay and massive user base, have seen their tokens drop sharply since their recent airdrops.
One of the biggest hits is Catizen, a major player in Telegram-based gaming. The CATI token has dropped from $1.1500 to $0.4565, bringing its market cap down to $139 million, with a fully diluted valuation (FDV) of $400 million.
Similarly, Notcoin (NOT), the first Telegram tap-to-earn game, has seen a 74% decrease in its valuation, from over $2.5 billion to $770 million.
Hamster Kombat, the industry's largest tap-to-earn game, has not been spared. Its token has fallen daily since its airdrop last week. The market cap has decreased from $600M to $300M , while its FDV now stands at $465 million. Other notable games, like DOGS and Pixelverse, have also experienced steep declines following their listings.
What is Telegram’s Tap-to-Earn Industry?
Tap-to-earn games have emerged as a popular subset of the crypto gaming industry, offering users the ability to earn tokens through simple actions like tapping buttons, watching videos, and completing tasks. Unlike traditional play-to-earn games such as Axie Infinity or Decentraland, tap-to-earn games are easily accessible via the Telegram app, requiring only a low-end smartphone and no complicated wallets or setups.
Games like Hamster Kombat, Notcoin, DOGS, and Catizen have quickly gained massive followings. For example, Hamster Kombat boasts over 300M users, with significant traction across platforms like YouTube and X (formerly Twitter). Other games like PixelTap and TapSwap have also attracted millions of players.
However, despite this popularity, the financial side of these games has struggled. Players accumulate tokens in hopes of converting them into fiat currencies when airdrops occur, but these tokens have not held their value post-listing.
Why Have These Tokens Crashed?
Several factors have contributed to the decline in tap-to-earn token prices. First, many airdrops in the crypto space, like those of Wormhole and ZkSync, have performed poorly this year, setting a concerning trend. Second, many players have been quick to sell their tokens after airdrops, driving prices down due to liquidity surges. Hamster Kombat, in particular, has seen large-scale selling of its HMSTR token.
Additionally, concerns about future token dilution are impacting market sentiment. While some games, like Notcoin, have released all of their tokens, others—such as Hamster Kombat and Catizen—have a significant number of tokens yet to be unlocked, raising fears of further dilution.
Looking Ahead
The sharp decline of tap-to-earn tokens mirrors the struggles faced by traditional play-to-earn tokens. Analysts expect further challenges ahead as players move on to new games, questioning whether other anticipated projects, like Pi Network 2025 airdrop, will face a similar fate.
Read More: X Empire Airdrop Criteria: Key Factors to Maximize Your Tokens
