The cryptocurrency $HMSTR, known as the “hamster coin,” announced a sharp decline in its value just three days after its launch, making it one of the fastest losing cryptocurrencies in that short period.

Background: $HMSTR was launched as a new cryptocurrency project amidst high expectations of a market-changing event. The coin relied on extensive marketing campaigns across social media platforms, specifically targeting new investors looking for opportunities to make quick profits. Initially, the market responded positively, with the coin seeing a rapid increase in its value during the first hours of trading, prompting many investors to buy the coin in hopes that it would see similar increases to some other cryptocurrencies. However, this increase did not last long.

Main causes of loss:

1. Excessive speculation: As interest in volatile cryptocurrencies grew, many investors engaged in excessive buying based on unrealistic expectations. After the initial surge, many of them began to sell en masse to make quick profits, leading to a sharp decline in the value of the currency.

2. Lack of Trust: Over time, reports emerged that the project lacked solid foundations to support it. Some investors began to question the team’s ability to deliver on the promises they made, which increased investor anxiety and contributed to a decline in confidence in the currency.

3. Lack of strategic support: Despite the massive media campaign, HMSTR has not been able to gain significant support from institutions or major investors in the cryptocurrency market, making it more vulnerable to extreme volatility. The lack of strategic partnerships and practical applications for the currency has also raised doubts about its long-term sustainability.