by Hamster Combat Takes a Stand Against Venture Capital Practices
In a bold statement to its community, the viral play-to-earn crypto game, Hamster Combat, has publicly criticized the behavior of crypto venture capital funding, labeling it as “exit liquidity” for investors. In a recent broadcast on Tuesday, the game’s administrators revealed they have turned down every funding offer from prominent venture capital firms in the Web3 space.
Rejecting the Norm: A Commitment to Community Values
“Since our explosive growth began, we’ve received numerous investment offers from some of the biggest venture capital firms in the Web3 space,” the game’s admins stated in their official Telegram group. “We’ve turned down every single one.” They emphasized their commitment to returning the Web3 space to its fundamentals, rejecting the notion that projects should exploit their user bases for short-term financial gains.
The Problem with ‘Exit Liquidity’
Hamster Combat’s team expressed concern over the trend where Web3 projects build audiences only to leverage them as exit liquidity for their venture capital backers. “Too many projects focus on securing funding through convincing pitches rather than creating innovative solutions that generate real value and revenue,” they stated. This approach often leads to companies conducting marketing campaigns, airdrops, or public ICOs, only to vanish, leaving users with worthless tokens.
Hamster Combat: A Unique Gaming Experience
Hamster Combat offers players a unique opportunity to become the virtual CEO of a crypto exchange of their choice, such as Binance and OKX. Players interact with their on-screen hamster to earn points used for upgrades within the game. Leveraging the TON blockchain, Hamster Combat has claimed a staggering 200 million users as of July and boasts 53 million subscribers on its Telegram channel since its launch in April.
HMSTR Token and Player-Centric Distribution
The game introduces an in-game currency that players can convert into HMSTR tokens, which will be tradable on cryptocurrency exchanges. Notably, 60% of the total supply of HMSTR tokens is reserved for players, while the remainder is allocated for market liquidity, ecosystem partnerships, and rewards for player squads.
Industry Trends: Venture Capital and Market Pressures
The broader crypto industry has seen increasing scrutiny of venture capital firms, particularly regarding their investment strategies and the impact on public investors. As reported by CoinDesk, many newer tokens, such as Aptos’ APT and Sui Network’s SUI, have suffered significant declines since their peaks in 2023, which contrasts with the rising trend of Bitcoin (BTC). Venture capital funds invested $13 billion in Q1 2022, yet the market has faced a steep downturn since then.
The Future of HMSTR Tokens
Looking ahead, developers of Hamster Combat have confirmed that venture funds will gain access to the future HMSTR token in the same manner as players: by purchasing it on exchanges once it’s issued and listed. This approach reinforces their commitment to equitable access and the integrity of their gaming community.
As the crypto landscape continues to evolve, Hamster Combat’s stance serves as a reminder of the importance of community-driven projects and the need for transparency in funding practices. For those interested in the world of cryptocurrency, understanding the intricacies of tokens and investments is crucial, especially in a time of market volatility.
For more insights on cryptocurrencies and market trends, explore our articles on XRP and its price predictions.
