Hamster Kombat (HMSTR) and Catizen (CATI), two of the most popular crypto games on Telegram, have seen their tokens plummet by more than 50%. The reason is not only the volatility of the crypto market, but also the mistakes associated with insufficient attention to the expectations of players and investors.
Problems in HMSTR and CATI strategies
Both games struggle to retain their audience, which is directly related to the poorly thought-out economic model. Tokens in games must have real value for both players and investors. When the value of a token falls, users begin to lose interest in the game and doubt its longevity.
Technical aspects of token fall
From a technical analysis perspective, the decline was predictable. The data showed a decline in trading volumes and a lack of new major participants, which signaled a possible fall. The destruction of key support levels and the decrease in liquidity only accelerated this process.
The problem is that both projects were unprepared for the decline in trust. Lack of transparency in management and weak response to negative reviews on social media made the situation worse.
Prospects
To recover, both projects need to increase user engagement and offer new mechanisms for engagement. They also need to revise their tokenomics to increase interest in the games. Without these steps, recovery may take much longer.
Technically, short-term growth is possible if there is positive news or if trading volumes increase. But this requires restoring confidence among players and investors.
Despite the current decline, Hamster Kombat and Catizen could recover if their teams learn from their mistakes and offer real incentives to users.
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