#HamsterKombat project, despite the recent growth of $HMSTR
quotations by more than 5%, continues to show weak results on the market. Thus its value remains almost 60% below record highs. The token's market capitalization has fallen significantly from the initial $600 million to $260 million, indicating serious problems in maintaining interest and liquidity.
One of the reasons for the market failure is the initial inflated valuation and excessive hype surrounding the launch. High expectations were quickly replaced by disappointment when users realized the project's shortcomings - from weak functionality to the lack of real utility of the cryptocurrency. Often such startups suffer from hyperactive initial interest, which then quickly wanes when real demand doesn't match supply.
A key factor has also been traders' concerns about Hamster Kombat's long-term sustainability. Many investors saw signs that the project would not be able to maintain a stable development, especially against a backdrop of high volatility and weak infrastructure. The rapid loss of confidence was exacerbated by a lack of transparency from the development team and a lack of a clear roadmap, which only accelerated sales.
Regulatory concerns also played a role. In the face of tightening scrutiny of the #cryptocurrencymarket , #Hamster Kombat's developers offered nothing to reassure market participants about possible future legal challenges. Combined with the general instability, the project was perceived as a short-term speculation rather than a long-term investment. Thus, the reality was not as optimistic as some experts had expected.
