- Gaming tokens like Hamster Kombat’s HMSTR and Catizen AI’s CATI have dropped as much as 50% from their peak prices.
- Notcoin (NOT), another major tap-to-earn token, is also experiencing sharp declines, down 13.2% daily and 74% since its peak in June.
- The overall crypto market has dropped 5.1% in the past 24 hours, with Bitcoin falling 3.5% to US$61.2K, mirroring broader financial market declines, including a 0.41% drop in the Dow Jones.
There is not a more degenerate way to start this article than saying that the conflict between Iran-Israel has caused the drops in tokens like Hamster Kombat’s HMSTR and Catizen AI’s CATI. But here we are.
Well, to be fair, game-related coins, just like memecoins, are subject to extreme volatility, but it seems the recent conflict in the Middle East has sparked a wave of sell-offs in the market. Both coins have seen their token prices drop significantly, falling over 50% from their peak values, according to data from CoinMarketCap.
CATI, HMSTR Nosedive
CATI, launched on September 20, has seen a steep decline. The coin is down 45.05% in the monthly chart, currently trading at US$0.45 (AU$0.65). Its market cap has regressed to US$139M (AU$202M), a 18.35% decline.
HSMTR looks even worse—the coin is down 51.99% in the last seven days, currently trading at US$0.0046 (AU$0.0068).
Hamster Kombat, which gained traction with 300 million players on its Telegram mini-app, introduced its HMSTR token last week. Despite the hype, the launch was met with mixed reactions, as 129 million players eligible for the token claim reported smaller-than-expected allocations.
These declines aren’t limited to Telegram-based tokens. Notcoin (NOT), another major tap-to-earn token, is down 13.2% on the daily chart, currently at US$0.0075 (AU$0.011). That’s a 74% drop since its peak in June. However, for NOT holders, this might be just another day in the office, as the coin has experienced abrupt price drops of over 60% through the span of 2024
Broader Market Declines Amid Conflict
By the way, when I mentioned that the Iran-Israel conflict could be one of the factors driving the prices down, well, it’s not just for these types of coins. The entire crypto market is down 5.1% in the last 24 hours, with Bitcoin (BTC) settling at US$61.2K (AU$88.8K), a 3.5% decrease from yesterday.
Related: Analysts Say Market Ready for Explosion, Predict ‘Regime Shift’ Toward Altcoins
It’s not exclusive to the crypto market, of course. Financial markets are panicking. In the US, most indexes in the stock market have closed the day in the red, with the Dow Jones Industrial Average falling 0.41% today.
It seems like Uptober is looking more like Octobear, am I right? Anyway, oil is up 3%, I guess we could take that as a consolation prize?
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