With Hamster Kombat preparing for its token launch at the end of July, the big question is: what will the token's price be at launch?
Hamster Kombat, a popular play-to-earn game, is gearing up for the launch of its much-anticipated token at the end of July. As we inch closer to the D-day, one burning question on everyone's mind is: what will be the price of the HMSTR token upon its debut? Given Hamster Kombat's massive user base of 250 million, the implications for the token's value are certainly substantial.
Despite the palpable excitement, crucial details pertaining to Hamster Kombat's tokenomics still remain shrouded in secrecy. Notably, Bybit has already listed HMSTR in its pre-market phase and has speculated on a total supply of 10 billion tokens for the purposes of initial valuation. However, it's important to bear in mind that this figure is subject to change pending the project's official disclosure of further information.
While some may intuitively assume a direct correspondence between HMSTR tokens and the user's coin balance, the reality is more nuanced. The system will factor in both the player's activity and hourly revenue to incentivize active gameplay. Hence, the next logical step in our analysis entails a detailed examination of Hamster Kombat to project its supply and approximate token price at launch.
Interestingly, Hamster Kombat employs a tiered ranking system that encompasses Bronze, Silver, Gold, Platinum, Diamond, Epic, Legendary, Master, Grandmaster, and Lord ranks. Additionally, there is an eleventh rank designated for the creators of the game, aptly named Creator. Through our assessment, we have approximated the distribution of Hamster Kombat's user base across these ranks as follows:
We commenced our analysis by assuming that the distribution of users across the ranks follows a pattern where higher ranks naturally have fewer users. Subsequently, we delved into the revenue data for the top 100 users within each rank. For instance, in the Bronze rank, the top user earns an impressive 33,612 coins per hour, while the 100th user earns 8,189 coins per hour. Utilizing this data, we calculated the average revenue of the top 100 users in each rank, which provided us with an estimate of the earnings at the higher end of each rank.
To arrive at an approximation of the average revenue for all users within each rank, we assumed that users beyond the top 100 would earn progressively less. This average was then adjusted to be roughly half of the average revenue of the top 100 users, accounting for the decrease in earnings as we move down the ranks.
Armed with the estimated average revenue for each rank and the number of users in each rank, we calculated the total revenue for each rank. Finally, by summing up the total revenue for all ranks, we arrived at an estimate of the total hourly revenue for all users in Hamster Kombat, which amounted to approximately 21.89 trillion coins.
In the event that the Hamster Kombat team opts for a distribution model where 1 HMSTR equals 1 coin per hour of revenue, the total supply would be approximately 21.89 trillion HMSTR tokens. Given the game's extensive user base, we can assume that the market capitalization might reach approximately $2 billion, which would place the token in the top spot within the gaming category, according to CoinMarketCap.
With a market cap of $2 billion, the price per token would be calculated by dividing $2 billion by 21.89 trillion HMSTR tokens, which gives a token price of approximately $0.0000913 per HMSTR.
However, if the distribution model is set such that 1 HMSTR equals 10,000 coins per hour of revenue, the total supply would be significantly reduced. In this scenario, the total supply of tokens would be 21.89 trillion coins divided by 10,000, which equals approximately 2.189 billion HMSTR tokens.
Given the same market cap of $2 billion, the price per token would then be calculated by dividing $2 billion by 2.189 billion HMSTR tokens, which would result in a token price of approximately $0.914 per HMSTR.
At the time of writing, in Bybit's pre-market trading, the floor price is $0.001, and the maximum price is $1.00, with the last traded price being $0.225. It's important to note that these are pre-market prices, and our estimate is only a projection. It does not necessarily reflect the prices at which readers will be able to buy or sell when the token finally launches.
Once the token gets listed, we can expect a significant sell pressure from many players, leading to a large number of sell orders. While some users may play for fun, a large number of users will be aiming to convert their earnings to cash, driving the price down.
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