Hamster Kombat token drops 42% in three days

Hamster Kombat’s (CRYPTO:HMSTR) native token, HMSTR, has plummeted 42% in just three days following its market debut.

Initially launched on major exchanges at $0.009993 per token, the TON-based token dropped to $0.005613 by September 29, 2024, marking an all-time low and a 14% decline in the last 24 hours.

The HMSTR token powers the Web3 game Hamster Kombat, hosted on the TON blockchain via Telegram.

Players earn HMSTR by engaging in the click-to-earn game, which includes daily missions and mini-games.

Despite its initial excitement, the token has faced significant sell-offs since its launch.

On its opening day, HMSTR had already dropped 30%, and its decline has continued.

The game had airdropped the token to early players as a reward for their in-game achievements, but this has not prevented the token from losing value rapidly.

According to trading data, there are currently 64.37 billion HMSTR in circulation, with a trading volume of $248 million in the last 24 hours.

Binance is the most active exchange for HMSTR, contributing significantly to its global trading activity.

However, market concentration is a concern for HMSTR’s long-term stability.

A single wallet controls 61.36% of the total supply, while the top five wallets hold 93.95% of the token’s supply.

This high concentration could create liquidity issues, making it difficult for HMSTR to stabilise in the market.

As with many new tokens, HMSTR’s volatility may persist, and its future success will depend on expanding its user base and maintaining engagement within the game.

Investors will be watching to see if the token can recover from its early price struggles.

At the time of writing, the Hamster Kombat price was $0.005778.