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 powerful preliminary upward trajectory, the sharp lower has “even” stunned 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 value drop was an anticipated consequence, 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 a substitute, it took an natural strategy, which Kim says was once the gold customary for launching tokens in web3 gaming till the high-FDV launches turned frequent apply.
Though clearly understanding {that a} increased 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 staff. Certainly, the high-FDV apply is vital to “why web3 gaming is quietly dying”, as Kim places it.
One other drawback 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 useful solely within the brief time period, and just for the groups and traders themselves. The plain losers are day 1 patrons.
“Excessive FDV token launches are structured in order that undertaking groups and early contributors successfully rip-off Day 1 patrons,” he says.
As a reassuring conclusion, he additionally states that Planetarium will not be nervous. The staff 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 everybody, but when decisions have to be made, prioritizing long-term holders and stakers is more healthy.”
