Why Did Hamster Kombat Crash After the Airdrop?

The eagerly awaited airdrop for Hamster Kombat (HMSTR) occurred on September 26, distributing 60 million tokens.

Despite the anticipation, many participants were disappointed with the airdrop, leading a significant portion to sell their tokens immediately after the launch.

The HMSTR token debuted on various exchanges at 3:00 p.m. EDT, starting at a price of $0.014. However, within minutes, the price plummeted by 20% due to heavy selling, contrasting sharply with a generally bullish market. At the time of writing, Hamster Kombat’s price stood at $0.0068, marking a 30% decline in just 24 hours.

While the price fell, trading volume exceeded $1 billion. Although high trading volume typically signals interest in a cryptocurrency, the simultaneous drop in price points to bearish sentiment that could lead to further declines.

Data from Coinglass shows a significant uptick in derivatives volume for HMSTR, indicating speculative activity. Yet, similar to the spot volume, this rise in derivatives alongside declining prices is also seen as a negative signal.

Frustration among players was evident regarding the airdrop, which yielded an average reward of around $8. This outcome was anticipated after Hamster Kombat disqualified 2.3 million players from participating in the event, diluting the rewards for the remaining eligible participants.