The wildly popular Telegram game, Hamster Kombat, has quickly amassed millions of users since its release in April. Known for its play-to-earn model, this crypto game has gained a significant following, boasting 200 million users as of July and 53 million subscribers on its Telegram channel. However, despite its rapid success, Hamster Kombat has taken a firm stance against venture capital funding, labeling it as an “exit liquidity” activity.
Rejecting Venture Capital Offers
In a bold move, Hamster Kombat’s developers have turned down all investment offers from venture capital firms, a decision they discussed openly with their community. In a Tuesday broadcast to their users, the game’s administrators emphasized their commitment to returning to the core principles of the Web3 space, focusing on creating innovative projects that offer real value and revenue.
“Since our explosive growth began, we’ve received numerous investment offers from some of the biggest venture capital firms in the Web3 space,” the developers stated in the official Telegram group. “We’ve turned down every single one.”
They further criticized the current trend in the industry where many Web3 projects build large audiences only to use them as exit liquidity for venture capital backers. “Too many Web3 projects have built audiences only to use them as exit liquidity for their venture capital backers. This has, unfortunately, become the norm in the industry,” the developers explained.
A Stand for Web3 Fundamentals
Hamster Kombat’s leadership believes in a return to the fundamentals of the Web3 space. They argue that instead of focusing on creating projects that generate true value and revenue, many companies are more concerned with securing funding, which is often spent on marketing, airdrops, or public ICOs. These practices, they argue, leave users at a disadvantage once the project’s backers exit.
“Instead of creating innovative projects that generate real value and revenue, companies often focus on making a convincing pitch to secure funding, spend it on marketing, conduct an airdrop or even a public ICO, and then walk away—leaving users holding the bag,” the developers said.
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Gameplay and Popularity
Hamster Kombat allows players to take on the role of a virtual hamster CEO of a crypto exchange, choosing platforms like Binance or OKX within the game. Players engage by tapping on their hamster to earn points, which can then be used to acquire upgrades for their in-game exchange. The game, which operates on the TON blockchain, has quickly become a favorite among crypto enthusiasts.
Since its release, Hamster Kombat has claimed a user base of 200 million as of July. Players in the game can convert their in-game coins into HMSTR tokens, which are tradable on various cryptocurrency exchanges. The game’s unique combination of fun and financial incentives has contributed to its viral growth and substantial popularity.
Future of the HMSTR Token
The HMSTR token is central to Hamster Kombat’s ecosystem. Notably, the only way to obtain this token is by playing the game. A significant 60% of the total supply of HMSTR tokens is reserved for players, ensuring that those who engage with the game are the primary beneficiaries. The remaining tokens are allocated for market liquidity, future ecosystem partnerships and grants, rewarding squads, and other essential functions within the game.
Criticism of Venture Capital Funding
In the broader crypto industry, venture capital funding has faced increasing scrutiny. Many within the crypto community have criticized these firms for investing in projects where the token’s value eventually surpasses the initial investments, leading to market pressure that often leaves public investors with losses after exchange listings.
Markus Thielen, founder of 10x Research, highlighted this issue in a June report: “Venture capital funds invested $13 billion in Q1 2022, while the market turned into a steep bear market,” he said. “Those funds are now under pressure from their investors to return capital as artificial intelligence (AI) has become a hotter theme.”
Despite a downturn in crypto funding in 2023, the market has seen growth in recent quarters. According to a PitchBook report from August 9, deal value in Q2 reached $2.7 billion, marking a 2.5% increase in total invested capital but a 12.5% decline in the number of deals compared to Q1.
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Hamster Kombat’s Stance on HMSTR Token Distribution
Looking ahead, Hamster Kombat has made it clear that venture funds will not receive any preferential treatment when it comes to the distribution of the HMSTR token. Instead, these funds will have to access the token just like any other user—by purchasing it on exchanges once it is issued and listed. This approach reinforces the game’s commitment to a fair and equitable ecosystem, where the community benefits directly from the game’s success.
Conclusion
Hamster Kombat’s decision to reject venture capital funding and focus on genuine value creation sets it apart in the rapidly evolving world of Web3 gaming. As the game continues to grow, its commitment to its community and the broader Web3 ethos will likely continue to attract a dedicated and enthusiastic player base.