Hamster Kombat: What Went Wrong With $HMSTR
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
As of 12:00 p.m. UTC on September 26, 2024, Hamster Kombat, which records extreme numbers of telegram users, was launched. Its listing happens on major crypto exchanges such as Bybit, Binance, Ebi, OKX, and on-chain wallets.
However, the listing event, which was expected to create excitement within its community, was nothing short of disappointment. The listing had different issues, which can be categorized into technical failures and poor decision-making.
Hamster Token Allocation and Policy Shift Problems
One of the major problems of the Hamster project was the issue of allocating tokens to its large community users. Despite the mechanism put in place to detect cheaters, the organizers were blamed for disqualifying legitimate users unintentionally alongside illegal participants. Furthermore, many of these tokens were instead given to social influencers for tasks performed.
To this end, users’ opinions of the project is one favoring some set of people over others.
In addition, there was also a delay in the launch date, which further discouraged the community about the project. Even after the allocation of tokens, the unexpected 11.25% lock-up rate till mid-2025 further adds to the misery of the community users. This, among other issues, has contributed to the loss of confidence in the future of the project.
Price Decline and Trading Problems
Hamster ($HMSTR), which was expected to launch over and above the pre-market price, opened at $0.01; not only that, it went down drastically by 40% to $0.0019. However, for an investor who holds $HMSTR in high esteem, the sharp fall in price sends a signal concerning the coin’s price instability in the future.
Adding to these problems are issues relating to technical difficulties and network congestion experienced by Telegram wallet users. Their frustration knew no bounds as the price was on the decline before they could trade for a stablecoin.
Also, small token holders could not transact, as some exchanges like Binance imposed transaction limits on their platforms. This, along with other points mentioned above, left many trades with no rewards.
Finally, the frustration faced by the Hamster community users could transcend into larger issues in the future. However, the project team must do something about these issues to rekindle the community’s trust in the project.
In order to place winning trades with us via Bybit, you can open an account here.
