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HMSTR token’s price dropped significantly after its listing, driven by profit-taking and declining market confidence.
Key Notes
HMSTR's price dropped over 50% within six days after its exchange listing.Unfair token distribution favored influencers, leading to loss of trust and growing fear, uncertainty, and doubt (FUD) among users.Its upcoming Season 2 could restore confidence and potentially drive a price recovery for HMSTR.The price of Hamster Kombat HMSTR $0.0046 24h volatility: 11.0% Market cap: $292.60 M Vol. 24h: $169.63 M since its airdrop and exchange listing has fallen below expectations. The tap-to-earn Telegram-based game had a lot of hype and excitement surrounding it, which many felt could affect the price of the token upon listing. However, the profit-taking activities that followed the listing have led to a significant drop in the price of HMSTR.
Shortly after being listed on various exchanges on September 26, HMSTR’s price started to drop rapidly. Profit-taking activities triggered a major sell-off, leading to a significant depreciation in value within minutes.
The market had hoped that HMSTR would follow in the footsteps of Notcoin, another token that saw a massive surge on its listing day, but HMSTR was unable to replicate that success.
The price of HMSTR has dropped by more than 50% in the last six days. The token is yet to recover from the bearish trend, as it has further depreciated by over 15% in the last 24 hours. The price of the token is trading at $0.004512 as of the time of writing.
One of the main factors behind the bearish sentiment around the HMSTR token is growing dissatisfaction within the community, especially concerning the token’s distribution process. While Hamster Kombat has a massive following with over 300 million users, the distribution of its airdrop to 131 million users did not yield the expected positive impact.
Hamster Kombat Community Distrust and HMSTR Token Distribution Issues
The negative bias toward the token could be attributed to factors such as “the unfair” HMSTR token distribution. Users who were affected by the way the token was distributed felt the rules and changes implemented before the airdrop were made to favor the influencers, as more of the tokens were allocated to them instead of regular players.
You lost your community the day you've announced your biased allocation for influencers by leaving the whole community 📌
— Crypto with Khan ( SFZ ) (@Cryptowithkhan) September 26, 2024
The manner in which the token was distributed has led to users losing trust in the token, which has created fear, uncertainty, and doubt (FUD) among users. This has affected the token, causing people to sell off their HMSTR or avoid purchasing it.
Despite the poor outcome of the HMSTR price following its listing, it was still able to rank high among the top tokens launched in the first quarter of 2024.
Can Season 2 Change the Course for HMSTR?
Hamster revealed in September that it is entering the interlude season, which is a warm-up before season 2.
If the second season manages to reengage the community and continue to attract players, it could trigger the price spike that many investors initially expected. However, for now, HMSTR continues to struggle under the weight of skepticism and market pressure. Time will tell if the project can overcome these challenges and drive a long-term recovery for the token.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.
