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Crypto : A massive offer slows down Hamster Kombat (HMSTR) !

15h00 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Tokenization

Cryptos experience sharp fluctuations that make and break fortunes in just a few hours. Today, one project is attracting all the attention: Hamster Kombat (HMSTR). Despite explosive beginnings thanks to a generous but poorly organized airdrop, the token struggles to exceed the symbolic threshold of $0.1.

Une scène de volatilité des marchés financiers, avec des graphiques en chute et en montée. Au centre, un jeton symbolisant la cryptomonnaie Hamster Kombat (HMSTR), entouré d’un airdrop de jetons tombant du ciel. L’arrière-plan montre un ciel orageux, symbolisant les incertitudes et la tension sur le marché, avec des éclairs discrets pour suggérer les risques imminents. L'image doit transmettre l'idée d'une crypto en difficulté, bloquée sous un seuil clé, avec un contraste entre espoir et crainte.

An excess of supply that blocks the rise of HMSTR

The key factor explaining the blocking of HMSTR below the $0.1 mark lies in its massive supply. At launch, 64 % of the 100 billion tokens were put into circulation, leading to immediate inflationary pressure. Thus, the HMSTR has seen a decline of more than 50 % from its all-time high of $0.01004. This situation was amplified by the absence of token burning mechanisms, a tool often used to reduce supply and stabilize prices. The abundance of available tokens has directly hindered the price progression.

Moreover, this excess supply was accompanied by strong selling demand from the initial airdrop beneficiaries. Indeed, 60 % of the total supply was distributed to the community, a large portion of which decided to sell their tokens quickly, aggravating the price decline. The airdrop, while popular, created an imbalance between supply and demand, preventing HMSTR from taking off in the market. This dynamic of excess supply remains one of the major obstacles to the token’s valuation.

Uncertainties related to the second season of the airdrop

However, a new challenge awaits HMSTR with the approaching end of the second season of the airdrop, scheduled for the first quarter of next year. HMSTR may face new downward pressure at the end of this second campaign. As this second phase of the airdrop ends, the injection of a new wave of tokens is likely to once again amplify selling pressure on the market. Such a mechanism could further delay any chance of a significant recovery.

However, some investors remain optimistic. They point to the recent trajectory of Notcoin (NOT), which managed to bounce back after an 80 % drop following its own airdrop. Could HMSTR follow the same path? A similar scenario is conceivable if efforts are made to limit inflation and encourage increased demand. But at this stage, the outlook remains uncertain, with fluctuations expected in the short term before potential market stabilization.

As HMSTR, the tap-to-earn game, continues to struggle to exceed the threshold of $0.1, short-term prospects remain mixed. The overabundance of supply, combined with the absence of inflation control mechanisms, weighs heavily on its performance. However, examples of rebounds in other cryptos, like NOT, suggest potential recovery, provided adjustments are made to support demand.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.