Hamster Kombat’s pre-market futures traded within a narrow band as anticipation grew for its upcoming airdrop and exchange listings.
The Hamster Kombat (HMSTR) token was trading at $0.011 on Sunday, Sep. 22 as the countdown to the airdrop continues. It has dropped by over 96% from its highest point this year.
Hamster Kombat airdrop is coming up
This price action is happening as the Hamster Kombat’s team prepares for the airdrop, which is expected to occur on Sep. 26.
Analysts believe that this will be one of the biggest airdrops this year due to Hamster Kombat’s popularity.
Over the past few months, the tap-to-earn platform has attracted over 300 million global users. It boasts a popular YouTube channel, amassing over 37.6 million subscribers since it was launched in May.
Its videos have been watched over 1.1 billion times.
Hamster Kombat’s X and Telegram accounts also have millions of actively engaged users. That number is growing with users receiving HMSTR tokens when they follow and engage with its platform.
Hamster’s airdrop will let fans accumulate the HMSTR tokens, and convert them into fiat currencies.
HMSTR token faces substantial risks
Historically, most tap-to-earn tokens often rise and then retreat after their airdrop. Notcoin (NOT), a popular platform with over 40 million users, initially jumped to a high of $0.02925 and then retreated by over 80% to the current $0.0078.
Similarly, Pixelverse soared to $0.1745 shortly after its airdrop and has crashed by over 90% to a record low of $0.0070.
Most recently, Catizen (CATI) surged to a record high of $1.20 and has pulled back by over 26% to the current $0.87.
The key challenge for tap-to-earn and play-to-earn platforms is how to keep their users engaged in the ecosystem, especially when the tokens are not doing well.
Some of the most popular play-to-earn tokens like Decentraland, Sandbox, Gala, and Axie Infinity have dropped sharply from their all-time highs as the number of users in their ecosystems fell.
Decentraland’s market cap has dropped from about $7 billion in 2021 to $576 million while Axie Infinity has moved from over $10 billion to $749 million.
Move-to-earn platforms like Sweatcoin and StepN, which were highly popular before their airdrops have all dropped sharply. Their market caps have dropped to $58 million and $348 million as activity in their networks has dropped.
The challenge is letting people become more engaged in the network when the token is not doing well. Therefore, there is a risk that Hamster Kombat’s token will rise initially and then retreat as the hype fades.
