Hamster Kombat (HMSTR) Token Sparked a Sharp 30% Crash Just Hours After Its Debut on Major Cryptocurrency Exchanges

This newly added play-to-earn game's Hamster Kombat (HMSTR) token sparked a sharp 30% crash just hours after its debut on major cryptocurrency exchanges

Hamster Kombat (HMSTR) a new play-to-earn game had its token begin trading on major cryptocurrency exchanges such as Binance and HashKey, but just hours after its debut, the token price saw a sharp 30% crash.

According to CoinGecko data, within this first hour, the token price could not maintain its initial rush and lost 10% just from an hour, since yesterday, HMSTR has seen its price tumble down to $0.0087 from $0.012.

HMSTR began trading on several exchanges including Binance and HashKey, OKX, Bybit, KuCoin, and MEXC as it was distributing the HMSTR and unveiling its opening balance withdrawals. Still, with all that hype pending, the sudden drop in the token could indeed be a result of the recipients of the airdrop cashing out their tokens.

Binance recently responded to this volatility by launching its futures trading for the HMSTR with up to 75x leverage for investors. It also listed the token in its Super Earn program. The token holders can now generate up to 300% annual returns within seven days locked with a minimum subscription of 100 tokens of HMSTR.

Data from CoinsGecko shows that HMSTR has a maximum supply of 100 billion tokens, and its supply is currently in circulation at 64.3 billion. The early price drop raises an interesting question: Are new tokens under more stress after much publicity listing?