Hamster Kombat Hits 300 Million Users, but the Performance of Tap-to-Earn Tokens Sends a Warning

The performance of popular Telegram tap-to-earn tokens like Avacoin, Pixelverse, and Notcoin is sending a warning to Hamster Kombat.

As Hamster Kombat boasts 300 million users and prepares for its token launch, the performance of popular Telegram tap-to-earn tokens, including Avacoin, Pixelverse, and Notcoin, serves as a cautionary tale.

According to data from CoinGecko, the platform has amassed over 300 million users worldwide, with 50 million daily active users. Its YouTube channel has garnered over 35 million subscribers, and its other social media platforms boast millions of followers.

Crucially, Hamster Kombat has outpaced other prominent players in the blockchain domain, such as Pi Network, which reportedly had a maximum of 50 million users at its peak. With anticipation building among HMSTR holders, the token launch will present an opportunity for them to either quickly liquidate or HODL their tokens.

However, recent data indicates that other popular tap-to-earn tokens have struggled following their listing.

Notcoin (NOT), which began trading on exchanges in May, has since plummeted by 55.8%, currently trading at $0.012. Its market capitalization has also decreased from over $2.5 billion to $1.32 billion, despite recent efforts to expand its ecosystem.

Similarly, the Pixelverse (PIXFI) token has dropped to $0.030, down by 70% from its highest point this month, bringing its market cap down to $160 million.

Among the latest tap-to-earn tokens to be listed is Avacoin (AVCN), and its performance has also been lackluster. According to Bitget, the token opened at $0.002 on Tuesday and was trading at $0.00091 during the day.

Avacoin, Notcoin, and Pixelverse share similarities with Hamster Kombat in that they allow users to earn tokens by performing simple tasks. While regular tapping contributes to earnings, users can complete additional tasks, such as watching YouTube videos and following social media accounts, to increase their token accrual.

Hence, the price action of these coins could serve as a warning to Hamster Kombat, suggesting that their token might also experience a sell-off following its airdrop. According to its updated white paper, 60% of the airdrop tokens will be allocated to users, while the remaining will be dedicated to market liquidity, partnerships, and grants.

The developers also aim to learn from the experiences of other play-to-earn platforms, such as Decentraland (MANA), Sandbox (SAND), and Axie Infinity (AXS). These games have reportedly seen minimal activity in recent times, and their tokens have suffered as a consequence.

To counter this challenge, Hamster Kombat will launch regular seasons where users can earn tokens. However, there is still a risk that current HMSTR holders may quickly dump tokens after the airdrop, driving down the price.