Following the launch of Immortal Rising 2’s IMT token on twenty eighth March, its value has seen a gentle 53% drop.
Though not anticipating a robust preliminary upward trajectory, the sharp lower has “even” shocked Planetarium Labs CEO JC Kim, who has penned down an official ‘Message from the CEO’ in response.
Though decrease than anticipated, Kim explains why the worth drop was an anticipated final result, as Planetarium, the writer of Immortal Rising 2, deliberately aimed to keep away from a excessive FDV launch. This mainly means it didn’t attempt pump the token’s theoretical pre-launch valuation. As an alternative, it took an natural method, which Kim says was the gold customary for launching tokens in web3 gaming till the high-FDV launches grew to become frequent observe.
Though clearly understanding {that a} larger launch value can be extra satisfying for IMT airdrop recipients, in addition to profit the developer’s personal money luggage, this was by no means an choice for the workforce. Certainly, the high-FDV observe is vital to “why web3 gaming is quietly dying”, as Kim places it.
One other downside Kim factors out is how web3 sport builders choose to checklist their tokens on centralized exchanges from day 1 of launch. This technique creates deliberately inflated token costs which is helpful solely within the quick time period, and just for the groups and buyers themselves. The apparent losers are day 1 patrons.
“High FDV token launches are structured so that project teams and early contributors effectively scam Day 1 buyers,” he says.
As a reassuring conclusion, he additionally states that Planetarium will not be fearful. The workforce has not bought a single IMT token since launch, and stays targeted on supporting its neighborhood and constructing nice video games for years to come back.
“Ideally, we’d embrace everyone, but if choices must be made, prioritizing long-term holders and stakers is healthier.”
