Source: Token Insight

Catizen and Hamster Kombat are the two most promising gaming projects in the TON ecosystem. Catizen is a virtual cat cafe where players can earn CATI Token by participating in fun games and activities, while Hamster Kombat is a rapidly rising Telegram tap-to-earn game where players take on the role of a virtual exchange's CEO.

These two projects have attracted widespread attention in the encryption community. Both tokens have just been launched. The CATI Token of Catizen was launched on September 20, 2024, while the HMSTR Token of Hamster Kombat was launched on the TON platform on September 26, 2024.

Catizen (CATI) Token

CATI Token is the native utility and governance Token of the Catizen ecosystem, a play-to-earn platform based on Telegram.

Token Utility:

CATI Token has multiple important functions in the Catizen ecosystem:

• In-game currency: CATI is the universal currency in the Catizen ecosystem, which users can use to purchase in-game items, upgrades, and services, such as Game Center, Launchpool, and Open Task. By using CATI for these transactions, users can access premium content and features.
• Governance: CATI as a governance Token allows holders to vote on important decisions within the ecosystem, including the upcoming Launchpool project. Decentralization governance helps shape the future of the platform.
• Launchpool Participation: Users can stake CATI Token in Catizen's Launchpool to receive rewards, including exclusive Airdrop and incentives.

stake and returns:

Users can stake CATI Token in Catizen's Launchpool to participate in yield generation activities. In addition, users holding CATI can receive future Airdrop rewards through the Open Task platform. Staking provides multiple benefits:

• Payment discount: Users can enjoy a 30% purchase discount when using CATI payment in the game center.
• stake rewards: By staking CATI in Launchpool or Earn Pool, users can earn Tokens from other high-value projects.
• Airdrop Rewards: Users participating in the Open Task platform can earn points, which can be exchanged for CATI every three months. The reward pool releases more than 1% of CATI Tokens every quarter, including Airdrop rewards for other projects such as Bombie and Vanilla.
• Fee Discount: Users can also use CATI to pay for platform transaction fees on platforms such as Vanilla TG trading robot and enjoy a 30% discount.

Token Distribution:

The total supply of CATI is fixed at 10 billion, with the specific allocation as follows:

Airdrop and ecosystem (34%):

• 15% at TGE (Initial Token Issuance) 100% released for player rewards in Season 1.
• 19% of the tokens will not be released at TGE, and the remaining will be used for quarterly Airdrop events to reward players in future seasons. 9,900,000 tokens (0.99%) will be Airdropped in early Q2. This number will increase by 10% each quarter until Q7, after which the release will rise linearly. The entire Airdrop will be completed within 12 quarters after TGE.

Launchpool (9%): Used for Launchpool, where users can stake Token to earn additional rewards.

Team (20%): Allocated to the team, tokens are not released at TGE, they begin to unlock after 12 months, and then linearly unlock over the next 48 months.

Finance (15%): As a strategic reserve, 10% will be released at TGE, and the remaining part will follow a 12-month lock-up period and a 48-month linear release plan.

Investors (10%): These Tokens will be unlocked linearly within 48 months after a lock-up period of 12 months.

Advisor (7%): Same unlocking method as investors, no initial release during TGE, linear unlocking after a 12-month lock-up period.

Liquidity (5%)：These Tokens are fully unlocked at TGE to ensure immediate Liquidity.

CATI Price Analysis

After the launch of the Catizen (CATI) Token on September 20, 2024, it experienced significant price Fluctuation. Initially, the Token price pumped rapidly, reaching an All-time high (ATH) of $1.11 on the first day of trading, reflecting strong early demand. However, this pump momentum quickly faded, and the price fell to near the Opening Price of $0.75 within a few days. As of the end of September, the trading price of CATI was around $0.79, 31% lower than the ATH.

Currently, the circulation supply of CATI is about 30.5%. By September 2025, it is expected to gradually increase to 40%. This means that approximately 10% of new CATI Tokens will enter the market within a year. This may bring some selling pressure. The Catizen team is developing new stake functionality to incentivize users to hold and stake Tokens to alleviate the selling pressure.

In order to better understand the positioning of CATI in the TON ecosystem, its market capitalization can be compared with other major projects. For example, as of September 28th, the market capitalization of the leading tap-to-earn project Notcoin is $1 billion, while the market capitalization of CATI is $218 million, only one-fifth of Notcoin's. However, considering the Fully Diluted Valuation (FDV), CATI's FDV is $720 million, which is closer to Notcoin's $1 billion.

Potential and Risks

Catizen is more complex compared to some simple tap-to-earn games. Unlike those games that only require tapping the screen to earn in-game currency, Catizen's gameplay requires players to slide and merge cats of the same level to get rewards. This additional gameplay layer makes Catizen more attractive than simple clicker games. As of September 2024, Catizen has exceeded 34 million users, with 800,000 paying users contributing an average revenue per user (ARPU) of $33. According to a report by Cointelegraph, these strong fundamental data support its current valuation as a top game project on TON.

It is worth noting that Notcoin, the leading tap-to-earn project in the TON ecosystem, is a completely distributed Token, and therefore is not affected by the continuous selling pressure caused by unlocked Tokens. Despite this advantage, the price of Notcoin has been falling since reaching its peak in June, even during the recent broader market Rebound, it has not shown a significant recovery. Notcoin's performance is inferior to ETH and TON, despite its smaller Market Cap. Projects with smaller Market Caps typically experience greater rebounds during a market Rebound. This poor performance may indicate a diminished interest from investors in tap-to-earn Tokens compared to the beginning of the year, which poses a potential challenge for similar projects in this field.

In this context, the current valuation of CATI may face challenges, especially with the launch of TON on-chain gaming projects. These new Tokens may diversify the liquidity of CATI, as investors may choose to allocate funds among multiple gaming projects in the ecosystem, thereby intensifying competition for market share and attention.

To prove the higher valuation reasonable, it is crucial to closely follow the development of Catizen's products. Only when Catizen can provide significantly better gaming experience in the TON ecosystem, it is possible to support a higher valuation. In a competitive and evolving ecosystem, strong product performance is key to maintaining investor confidence and capturing market share, especially with the continuous launch of new game projects on TON on-chain.

Hamster Kombat (HMSTR) Token

HMSTR is the utility Token of the Hamster Kombat ecosystem, mainly used for in-game rewards, personalized customization, and participation in various activities within the Hamster Kombat ecosystem.

Token Utility:

$HMSTR Token has multiple uses in the Hamster Kombat ecosystem:

• In-game currency: HMSTR Token is the main currency for various transactions within the game. Players can use it to buy, sell, and trade items, characters and upgrade content.
• Access exclusive content: Players can use HMSTR Token to unlock special content that regular games cannot obtain, including rare items and unique characters.
• Activity Participation: This Token allows players to participate in limited-time events and tournaments that offer unique rewards, creating a competitive and fun gaming environment.
• Unlock advanced features: Players can use HMSTR Token to access advanced customization options and accelerate the upgrade mechanism, thereby gaining a competitive advantage in the game.

Token Distribution:

The total supply of Hamster Kombat (HMSTR) Token is 100 billion, with a considerable portion used for player rewards and the ecosystem's rise. Here is the detailed allocation of Token:

Initial allocation: 64.38% (6.4375 billion HMSTR) of the total supply will be released during the token generation event (TGE).

Player Rewards:

• 60% is used for the player rewards in Season 1: Players can only receive 88.75% of their HMSTR Token allocation on the first day, and the remaining 11.25% will be released linearly over 10 months. In other words, about 53.24 billion Tokens will be airdropped to users during token issuance, while 6.75 billion Tokens will be released over the 10 months after listing.
• 15% for Season 2 player rewards: These Tokens are reserved for the Season 2 Airdrop, but have not yet started.

Other Allocation

By rewarding players with a large distribution of tokens, Hamster Kombat aims to incentivize user participation and drive continued interest in the platform. The HMSTR Token is not for investors. According to the White Paper, the project does not involve any investment firms or venture capital (VC). This is explicitly stated with the goal of reducing dumping pressure and ensuring that the token remains community-driven.

The project particularly emphasizes that the value of Token will be determined by the participation of the community, demand, and ecosystem, rather than relying on external investors seeking Liquidity. This approach helps to avoid common exit strategies of investors, which often cause selling pressure and have a negative impact on Token prices.

HMSTR Price Analysis

The trading price of HMSTR Token at launch was approximately $0.009758 and quickly pumped to a high of approximately $0.01004, achieving a market capitalization of $646 million in a short period of time. However, this pumping momentum was short-lived, and the token sharply declined to $0.007 within a few hours.

During the token issuance, the circulating supply of HMSTR is relatively high, accounting for about 64%. The team's token allocation will be locked until September 2025, and the only tokens unlocked within the next year will be a portion reserved for partners and rewards, with a total unlock amount of only 1.5%. In addition, the project has also reserved 15% of the total supply for the second season airdrop, but the specific plan for the second season has not been determined yet.

As of now, the Market Cap of HMSTR is about $4.37 billion, which is approximately half of the leading tap-to-earn project Notcoin Market Cap in the TON ecosystem. In comparison, the Fully Diluted Valuation (FDV) of HMSTR is $6.8 billion, similar to CATI's $7.1 billion. Both FDVs are lower than Notcoin's $10 billion.

However, HMSTR's over 64% high circulation supply (compared to CATI's 30.5%) means that after token issuance, Airdrop participants may quickly dump tokens, facing higher short-term selling pressure. Nevertheless, due to relatively lower future token unlocking pressure, its price may stabilize more quickly. This may also explain why HMSTR's current Fully Diluted Valuation (FDV) is slightly lower than CATI's.

HMSTR and CATI face similar challenges as leading tap-to-earn Token. Notcoin, since reaching its peak in June, has not shown significant price recovery. This indicates that the tap-to-earn field may be losing investor's follow. In addition, as similar projects in the TON ecosystem increase, HMSTR and CATI may also face more intense competition.

Conclusion

CATI and HMSTR are new tap-to-earn game Tokens newly launched in the TON ecosystem, with a current Fully Diluted Valuation (FDV) of about $7 billion, lower than the leading tap-to-earn Token Notcoin's $10 billion.

CATI has a more aggressive Token unlocking plan, which may result in greater long-term selling pressure as more Tokens enter circulation. In contrast, HMSTR has a higher initial supply of circulating Tokens, leading to higher short-term selling pressure, especially from Airdrop participants trying to dump Token. However, this means that HMSTR's long-term selling pressure may decrease after the initial activity ends.

Both face similar challenges, including the shift in market narrative from tap-to-earn to other areas, as well as the intensified competition brought by the TON Block on-chain new gaming project. These factors may impact investor interest and market Liquidity, so CATI and HMSTR must respond by differentiation and maintaining user engagement to remain competitive in this rapidly evolving market.