Hamster Kombat’s sell-off accelerated in the futures market as demand among investors waned.

Hamster Kombat (HMSTR) futures dropped to a record low of $0.1586 on Aug. 16, down by over 50% from its highest level this month. On the positive side, the performance of these pre-market futures may not fully represent what to expect when the airdrop launches.

For one, the futures are only offered by OKX, and their volume is significantly low. Data the platform showed that open interest was just 295,720 HMSTR tokens, while the 24-hour volume was 389,000 tokens.

However, there is a risk that the token could drop further if the airdrop happens in this current market environment, where most altcoins are experiencing a bear market.

Additionally, all tap-to-earn tokens that have listed recently have dropped by double digits. Notably, Notcoin (NOT) token has crashed by over 68% from its highest level in June. It’s performance is a sign of what might happen when its airdrop happens.

Hamster Kombat’s futures trading is happening at a time when there are signs that activity on the network is slowing. For instance, the platform’s YouTube channel’s growth has stalled. After hitting over 30 million subscribers in a month, the total subscriber count stood at 35 million on Aug. 16. 

Hamster Kombat, which claims to have over 300 million users, faces significant challenges ahead. The biggest one will be maintaining user engagement when the airdrop finally launches, allowing users to sell their HMSTR tokens.

In the past, many blockchain companies have faced similar situations where initial enthusiasm fades. For example, Shiba Inu (SHIB), one of the most popular meme coins, rose to $0.000088 in 2021 and has since retreated by 85% to $0.000015.

Similarly, Decentraland (MANA), which once had thousands of daily active users in 2021, now has less than 1,000 monthly users.

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

Hamster Kombat hits 300 million users

Due to its huge popularity, the Hamster Kombat token launch is one of the most anticipated events in the crypto industry, although the timeline for an airdrop is uncertain.

Data shows that the platform has accumulated over 300 million users globally and 50 million daily active users. Its YouTube channel has added over 35 million subscribers, while its other social media platforms have millions of users.

Hamster Kombat has surpassed other popular players in the blockchain industry, like Pi Network, which had over 50 million users at its peak. Many HMSTR holders look forward to the token listing, which will let them liquidate or HODL their tokens.

Notcoin, Avacoin, and Pixelverse have dropped

Current data shows that other popular tap-to-earn tokens are not doing well after listing.

Notcoin (NOT), which was listed in May, has dropped by 55.8% to $0.012. Its market cap has decreased from over $2.5 billion to $1.32 billion, even after recent measures to grow its ecosystem.

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

Avacoin (AVCN), the latest tap-to-earn token to list, has also not performed well. According to Bitget, the token opened at $0.002 on Tuesday and traded at $0.00091 during the day.

Avacoin, Notcoin, and Pixelverse are similar projects to Hamster Kombat in letting users earn tokens by doing simple tasks. In addition to regular tapping, users can gain more tokens by completing tasks like watching YouTube videos and following social media accounts.

Therefore, the price action of these coins is a warning shot to Hamster Kombat, suggesting that their price could also drop after their airdrops. According to its new white paper, Hamster Kombat users will receive 60% of the airdrop tokens, with the rest going to market liquidity, partnerships, and grants.

The developers hope to learn from other play-to-earn platforms like Decentraland (MANA), Sandbox (SAND), and Axie Infinity (AXS). These games have had little activity in the past few years, and their tokens have dropped. 

Hamster Kombat aims to solve this challenge by launching regular seasons where users can earn tokens. However, the risk remains that current HMSTR holders might dump tokens after the airdrop, pushing the price lower.