Following the launch of Immortal Rising 2’s IMT token on twenty eighth March, its value has seen a gradual 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 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 a substitute, it took an natural strategy, which Kim says was the gold normal for launching tokens in web3 gaming till the high-FDV launches grew to become frequent apply.
Though clearly understanding {that a} larger launch value could be extra satisfying for IMT airdrop recipients, in addition to profit the developer’s personal money baggage, this was by no means an possibility for the workforce. Certainly, the high-FDV apply is essential to “why web3 gaming is quietly dying”, as Kim places it.
One other downside Kim factors out is how web3 recreation builders decide to record 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 plain losers are day 1 consumers.
“Excessive FDV token launches are structured in order that venture groups and early contributors successfully rip-off Day 1 consumers,” he says.
As a reassuring conclusion, he additionally states that Planetarium isn’t frightened. The workforce has not bought a single IMT token since launch, and stays centered on supporting its neighborhood and constructing nice video games for years to come back.
“Ideally, we’d embrace everybody, but when decisions should be made, prioritizing long-term holders and stakers is more healthy.”