Hamster Kombat (HMSTR) dominated crypto trends over the past months as one of the most followed blockchain projects of 2024.
While the team unveiled a lucrative roadmap to retain the initial investor excitement, the altcoin saw a sharp decline after its much-anticipated airdrop and official listing on Thursday, 26 September.
HMSTR price saw a swift decline of over 40% within the past day amid increased selling momentum as many airdrop recipients offload their coins.
The altcoin consolidates at $0.0068 after sliding from $0.009095.
Meanwhile, Hamster Kombat’s price movements within a day of going live have raised worries about its long-term performance and stability.
HMSTR price crashes after exchange debut
The Hamster team conducted the highly-awaited airdrop on Thursday, giving away over 60 billion HMSTR coins to the qualified 131 million users.
While the tap-to-earn game launched on leading exchanges such as Crypto.com, the altcoin endured relentless bearish slides in the past day.
Hamster Kombat’s woes began after its initial distribution, which attracted massive criticism from the community, with many calling it “unfair.”
The Telegram-based game banned around 2.3 million of its over 300 million participants due to cheating.
Furthermore, the giveaway failed to meet user expectations, as many ended up with pennies after anticipating life-changing balances.
Thus, many airdrop recipients dumped their HMSTR assets immediately after listing, triggering a massive bearish wave.
Also, the unexpected compulsory lock-up of 11% of the allocated tokens meant an absence of transparency to many in the community.
That attracted uncertainty and unwillingness to hodl HMSTR.
HMSTR’s latest price movement
The altcoin traded in the red at press time, reflecting bear dominance after plunging to $0.0068. The 185% uptick in daily trading volume likely reflects increased participation from sellers, threatening more plunges as HMSTR consolidates.
Source: Coinmarketcap
Technical indicators support the downward trajectory. The negative Chaikin Money Flow suggests seller dominance. Hamster Kombat maintains sideways actions between support ($0.0064) and resistance ($0.007) zones while highlighting an imminent breakdown.
With airdrop participants selling to reduce losses, increased selling momentum will plunge the altcoin to the support floor at $0.0064.
The Hamster Kombat team has to fight to regain investor trust and the initial excitement to rescue the project from the prevailing bearish tendencies.
Meanwhile, HMSTR’s current performance underscores the benefits of transparency in the crypto community. Moreover, it indicates the dangers and risks associated with hype-driven projects.
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