The TON ecosystem tokens, including DOGS, Hamster Kombat, and Catizen, have experienced a significant drop in value in recent days. This decline has been as high as 30-50% from their all-time highs. The market capitalization of these tokens has also decreased, with trading volumes falling by more than 27% to $675 million. This has led to a rush of traders trying to sell off their tokens.
DOGS, which saw a 58% drop in value since its listing, has announced a token burn to reduce the total supply and potentially increase its value. Similarly, Hamster Kombat has faced challenges after its airdrop, with the token losing 50% of its value since its launch. The project disappointed users due to issues with distribution, rule changes, and low token prices.
Catizen, another Telegram-based project, has also seen a 50% decrease in its token value since late September. The project faced backlash from the community after unexpected rule changes and issues with token distribution.
Airdrops, once a popular strategy for token distribution, may no longer be as effective in maintaining long-term interest or value. Many projects that used airdrops to attract users have seen significant price declines within 90 days of distribution. This oversaturation of airdrop strategies has led to a decrease in token value over time.
While newly launched tokens in the TON ecosystem may experience initial hype, the long-term sustainability of these projects remains uncertain. Analysts suggest that only tokens with strong fundamentals and a solid network can survive in the competitive crypto market. Hamster Kombat, despite its popularity, may face challenges in the future like many meme coins.
Overall, the decline in TON ecosystem tokens can be attributed to a combination of factors, including oversaturation of airdrop strategies, rule changes in projects, and lack of long-term sustainability. As the crypto market continues to evolve, only projects with robust foundations are likely to thrive in the long run.