Here’s why Hamster Kombat (HMSTR) coin has crashed

Hamster Kombat (HMSTR), a token that once captivated millions with its viral “tap-to-earn” model, is in a freefall, sending shockwaves through the crypto market. After peaking at $0.007222 in late September 2024, the token has lost over 85% of its value, reaching a new all-time low of $0.001046 on June 12, 2025. Despite earlier signs of resilience, recent events have triggered an aggressive sell-off, leaving both retail and institutional investors scrambling to reassess their positions. Currently priced at $0.001062, the token is down nearly 20% in the last 24 hours, continuing a brutal decline that has erased nearly 60% of its value in the past month alone. Hamster Kombat price chart |Source: CoinMarketCap To make matters worse, the market cap now hovers around $68.5 million, with a 24-hour trading volume surpassing $160 million — a sign of panic rather than healthy liquidity. The crash began with the HMSTR airdrop The most severe damage came when the HMSTR team unveiled that only 88.75% of the much-anticipated airdropped tokens would be immediately available, while the remaining portion would be vested over a ten-month period. This announcement triggered widespread outrage among users who had been eagerly waiting to cash out their free tokens. As a result, the token crashed by nearly 27% in a single day, as millions rushed to sell before prices dropped further. That one revelation not only fractured user trust but also intensified liquidity stress as sell orders flooded the books faster than buyers could absorb them. In addition, ahead of the airdrop, the Hamster Kombat team had disabled 2.3 million accounts for suspected cheating. Hamster Kombat user engagement has collapsed dramatically Following the airdrop debacle, Hamster Kombat, which once boasted over 300 million players engaging with its gamified mechanics, has seen its active user base fall sharply to just 13.1 million. This mass exodus has hurt both perception and demand, making it harder for the project to sustain upward momentum or generate organic growth. Without a steady inflow of new users or returning participants, any attempts to stabilise HMSTR’s price face immediate headwinds. Top wallets are offloading HMSTR tokens at scale Adding to the woes, several large wallets—believed to belong to insiders or early investors—have been dumping massive amounts of HMSTR into the market. This aggressive unloading has raised questions about the long-term viability of the token, as concentrated supply in just 37 wallets poses systemic risks to price stability. Whales currently control over 87% of the token’s total supply, giving them outsized influence over every price movement and eroding confidence among smaller holders. Scam fears are growing across the community In parallel, a wave of phishing scams — most notably the rise of copycat tokens like “Hamster Cash” — has ignited fears that the entire ecosystem may be compromised. These clones have taken advantage of the chaos to target unsuspecting users, further damaging trust in Hamster Kombat’s brand integrity. Until the team addresses these security concerns, users may remain reluctant to re-engage with the platform or reinvest in HMSTR. Technical indicators signal a continuation of the bearish trend From a technical analysis standpoint, HMSTR’s daily setup offers little optimism for a quick turnaround. The token has broken below its 9-day simple moving average, and its Moving Average Convergence/Divergence (MACD) recently flashed a bearish crossover, reinforcing the existing downtrend. Meanwhile, the Relative Strength Index (RSI) has plunged to an extremely oversold level of 14.64, signalling that sentiment is deeply negative. Although such readings typically hint at a possible bounce, the lack of strong buying pressure suggests this time could be different. To reverse the current trajectory, the project would need to roll out a bold marketing campaign, secure additional exchange listings, and possibly reconsider its vesting structure. Unless confidence is rebuilt through meaningful actions and transparent communication, Hamster Kombat (HMSTR) risks slipping deeper into obscurity. The post Here’s why Hamster Kombat (HMSTR) coin has crashed appeared first on Invezz

Source: Invezz