Hamster Kombat in a harsh reversal; market cap drops below Notcoin

Hamster Kombat’s token plunged by over 30% following its much-anticipated airdrop and token listing.

Hamster Kombat (HMSTR) crashed to $0.0088, bringing its total valuation to over $574 million, making it the 110th largest cryptocurrency. Its opening price was also significantly lower than the pre-market futures high of $0.3865.

It has been listed on several large centralized exchanges, including Binance, OKX, MEXC, Gate.io, Woo, and KuCoin. Binance also launched an earn program, where participants will have a chance to win 100 million HMSTR tokens.

Data from CoinGecko shows that Hamster has a maximum supply cap of 100 billion tokens, with 64.3 billion of them in circulation. This decline likely occurred as many airdrop recipients began selling their tokens.

Hamster Kombat’s valuation means that it is smaller than Notcoin (NOT), the first tap-to-earn token to be listed, which has a market cap of over $871 million. 

Fundamentally, Hamster has a larger ecosystem than Notcoin. It boasts over 300 million players, 37.6 million YouTube subscribers, and 14.3 million followers on X.

A likely reason for the price drop is that Hamster has over 35 million tokens locked, while all of Notcoin’s 102.4 million tokens are in circulation.

The biggest short-term risk for Hamster will be increased selling by millions of people who have accumulated billions of tokens over the past few months. Typically, newly listed Telegram tokens experience a decline shortly after launch.

Catizen (CATI) initially jumped to $1.150 after launch but has since dropped by over 38%. Similarly, Notcoin and Pixelverse have both seen double-digit declines from their all-time highs.

On the positive side, Hamster Kombat’s airdrop happened at a time when most cryptocurrencies are rising. Bitcoin (BTC) rose to $64,700 while the total valuation of all coins rose by 3.7% to $2.26 trillion.

Other highly anticipated tokens have also disappointed in the past. For example, Sweat Economy has dropped by 94% from its record high, despite Sweatcoin having over 50 million users before the SWEAT token airdrop.