Why Hamster's Anti-VC Stance is Shaking Up the Crypto World!

By  Will McKinnon November 1, 2024

Tokens
Games
Image for Why Hamster's Anti-VC Stance is Shaking Up the Crypto World!

Introduction

Hamster Kombat, the insanely popular play-to-earn game, has made a big splash in the crypto world by turning down multiple venture capital (VC) investment offers. That’s right, instead of cashing in on millions from eager VCs, the team behind Hamster Kombat is saying no thanks. But why would they do that, especially when so many Web3 projects are chasing VC funding? Let’s break it down.

Calling Out the "Exit Liquidity" Problem

In a recent community update, Hamster Kombat’s team explained why they’re staying clear of VC money, calling out VC funding as an "exit liquidity" scheme. In simpler terms, they accused many projects of using VC funding to pump up their token value, only to leave retail investors stuck when the insiders cash out. It’s a cycle that’s become all too common, where the project gets the hype, VCs get rich, and regular users end up with losses.

Hamster Kombat, however, wants to change the game—literally. They’re focused on making sure the project rewards its players, not lining the pockets of big investors. They believe this approach is more aligned with the true spirit of Web3, which is all about decentralization and user empowerment​.

The Players First Approach!

One of the standout features of Hamster Kombat’s strategy is its token distribution. Instead of handing out tokens to VCs through private sales, they’re reserving a huge chunk—60%, to be exact—for players. This way, the people who actually play the game are the ones who benefit the most. The remaining 40% will be used for things like liquidity and ecosystem development, making sure the project stays sustainable.

Moreover, Hamster’s timing for this decision couldn’t be more interesting. Over the past couple of years, several crypto tokens backed by VCs—like Aptos and Sui—have dropped dramatically after their initial hype. Many in the crypto community have started to question whether VC involvement is actually good for long-term success.

This “players-first” approach is rare in the world of crypto gaming. It’s a way for Hamster Kombat to make sure that their community, not high-net investors, is the driving force behind the project’s growth.

A New Blueprint for Web3?

Could Hamster Kombat’s decision spark a new trend in Web3? Their move has definitely caught the attention of the crypto world, and it could inspire other projects to reconsider their reliance on VCs. By focusing on community and user rewards, Hamster Kombat is showing that there’s a different path forward—one that doesn’t involve sacrificing the long-term health of the project for a quick cash grab.

Only time will tell if their strategy pays off, but one thing’s for sure: Hamster Kombat is making a statement, and people are listening.

Enjoyed the read? Be sure to follow us on Twitter (X) to stay in the loop with all the latest crypto news!


Related Articles