Hamster Kombat Token Launch Faces Backlash as HMSTR Price Plummets & Users Cry Foul

TLDR:

• Hamster Kombat conducted its HMSTR token airdrop, disappointing many players
• HMSTR token price fell sharply after listing on exchanges
• Many users received very small amounts of tokens worth less than $10
• The hashtag #HMSTRSCAM is trending as users express outrage
• Technical issues and accusations of unfair distribution have damaged the project’s reputation

The highly anticipated token launch for Hamster Kombat, a popular tap-to-earn game on Telegram, has encountered significant challenges and user backlash.

On September 26, 2024, the project conducted its long-awaited airdrop of HMSTR tokens, but the event quickly turned sour as many players expressed disappointment with their rewards and the token’s value plummeted on exchanges.

Hamster Kombat, which had amassed over 300 million users since its launch in March, distributed tokens to 131 million qualifying players. However, numerous users took to social media to voice their frustration, describing their HMSTR rewards as “dust” – a term often used to denote trivial amounts of cryptocurrency.

Many complained that their allocations were worth less than $10, despite months of active gameplay and promotion of the project.

The dissatisfaction was further compounded by the token’s performance on cryptocurrency exchanges. Upon listing, the price of HMSTR fell sharply, losing as much as 50% of its value within hours of trading.

According to data from CoinGecko, HMSTR’s price dropped from an initial $0.012 to $0.0087 in just 24 hours. This rapid decline left many players feeling shortchanged, especially those who had invested significant time and effort into the game.

Hamster Kombat Price at Coingecko

Technical issues also plagued the launch, with some users reporting difficulties accessing their tokens due to network overload. The project warned of “overwhelming demand” impacting users’ ability to trade the coin, which only added to the growing frustration within the community.

As news of the troubled launch spread, the hashtag #HMSTRSCAM began trending on social media platforms.

Users accused the project of unfairly disqualifying a large portion of participants from receiving tokens, while allegedly favoring influencers and YouTubers with larger allocations. These claims of inequitable distribution further eroded trust in the project.

The backlash has prompted calls within the community to boycott Hamster Kombat’s social media accounts and block its bot. This negative sentiment threatens to overshadow the game’s previous success and raises questions about its future viability.

Despite the controversy, some exchanges have embraced HMSTR. Binance, one of the world’s largest cryptocurrency exchanges, listed the token for spot trading and even opened futures trading with up to 75x leverage.

Binance included HMSTR in its Super Earn program, offering holders the opportunity to earn up to 300% annual percentage rate for a seven-day locked period.

The Open Network (TON), the blockchain on which HMSTR operates, has faced its own challenges recently. Last month, the network experienced two outages in a single week, linked to the launch of another meme coin.

These issues highlight the broader technical challenges facing blockchain projects as they attempt to scale and manage sudden influxes of user activity.

As of the latest reports, over 108,000 wallets hold HMSTR tokens, with a significant portion of the circulating supply held in a Binance hot wallet. This suggests that many players quickly moved to sell their tokens on the exchange, contributing to the price decline.

The Hamster Kombat team has stated that 15 billion HMSTR tokens have been reserved for the game’s second season, indicating plans to continue development and potentially address user concerns.

However, the immediate future of the project remains uncertain as it grapples with the fallout from its troubled token launch.