The tokens within the TON (Telegram Open Network) ecosystem have experienced a significant drop in value, with many losing between 30% and 50% of their all-time highs. Several of these tokens, including Dogs (DOGS), Hamster Kombat (HMSTR), Catizen (CATI), and Toncoin (TON), have been particularly affected following their recent listings on major crypto exchanges.
The sudden decrease in value has led many to question the underlying reasons behind these drops. In addition, the total market capitalization for these tokens has plummeted, with trading volumes falling by 27% to $675 million, as per recent reports.
DOGS Token: A Massive 58% Plummet and Developer’s Plan B Since its listing in August, the DOGS token has lost 58% of its value, largely due to an unrestricted vesting period. Holders were able to sell their tokens immediately after receiving them, causing a significant sell-off. In response to this, the development team has proposed a token burn initiative to reduce the circulating supply, in hopes of driving the value back up.
Hamster Kombat’s Airdrop Failures Another token, Hamster Kombat (HMSTR), also faced a sharp decline post-airdrop. Initially receiving a strong reception from the community, the excitement was short-lived as aggressive sell-offs tanked the token’s price. The listing price of $0.014 quickly plummeted, with the token losing half its value within days. Complaints about unfair reward distributions and issues with trading on exchanges further exacerbated the situation.
Catizen: Changing Rules and Growing Discontent Catizen (CATI) also faced its own set of challenges. Shortly before its token distribution, the project unexpectedly changed the allocation rules, reducing the amount of tokens distributed to players from 43% to 30%. This, combined with the fact that spending in the game, not just time, became a key factor for rewards, led to dissatisfaction and backlash from the community.
The Role of Airdrops and Community Trust Airdrops have traditionally been a strategy to boost user engagement and distribute tokens widely. However, with tokens like Dogs, Hamster Kombat, and Catizen, it’s becoming evident that airdrops may no longer generate the long-term interest they once did. A study by KeyRock showed that 88.7% of tokens distributed via airdrops suffered significant price declines within 90 days of distribution.
What’s Next for the TON Ecosystem? As newly launched projects in the TON ecosystem continue to struggle, the sustainability of these tokens remains in question. Many users, already frustrated by failed airdrops, are losing trust in the projects. However, some analysts believe that only projects with strong fundamentals and clear utility will survive in the long run.
