In a bid to show round its lagging momentum, UAE-based crew shooter Farcana has launched a brand new FAR token staking program.
Providing 60% APR on staked FAR, this system is likely one of the highest incentives amongst present web3 video games. However as with a big majority of tokens launched in 2024, FAR has not carried out effectively, down 96% since its February 2024 launch.
“The decline (of FAR) reflects early listing decisions that, while initially driving momentum, highlighted the need for more robust utility within the ecosystem,” commented Farcana founder and CEO Ilman Shazhaev in a submit on X.
“Until the game goes live, our token has been predominantly driven by speculation – a model that, while effective in the short term, does not build sustainable growth,” he continued. “That’s why FAR has also underperformed in the current market.”
Because of releasing its new staking system, FAR has jumped by 24%. It’s additionally reached quantity two as probably the most traded asset on crypto trade Bybit. Though excellent news for the challenge short-term, there’s a bigger pattern plaguing altcoins extra typically, and web3 gaming tokens particularly.
As the next graph exhibits solely six of the highest 20 gaming tokens haven’t declined in value throughout 2024.
This difficulty was additionally not too long ago addressed by Animoca Manufacturers chairman Yat Siu, who’s plainly acknowledged that these tokens have failed to achieve traction. Regardless of of – or slightly due to – an growing market cap for altcoins, the sheer variety of new tokens in 2024 has “greatly diluted overall attention” for particular person altcoins, inflicting weak value efficiency.
Siu goes on to counsel that institutional participation, corresponding to within the case of Bitcoin, is crucial for the longevity of those diluted tokens, because it might each improve belief and herald substantial long-term capital. A far cry from the speculation-driven buying and selling that’s overshadowed most of crypto gaming tokens up to now.
In the meantime, Shazhaev added, “Staking is just the first step in creating long-term stability and utility for the token.”
“We want our holders to put their tokens to work while we continue to build out the Farcana ecosystem, slowly but surely.”
Customers desirous to stake their FAR tokens want to attach their pockets to Polygon, which can also be certainly one of Farcana’s seed traders. Amongst others collaborating within the $10 million seed spherical introduced on the finish of 2023 had been Animoca Manufacturers, Fenbushi Capital, and Benefit Circle.
