In a bid to show round its lagging momentum, UAE-based group shooter Farcana has launched a brand new FAR token staking program.
Providing 60% APR on staked FAR, this system is without doubt one of the highest incentives amongst present web3 video games. However as with a big majority of tokens launched in 2024, FAR has not carried out nicely, down 96% since its February 2024 launch.
“The decline (of FAR) displays early itemizing choices that, whereas initially driving momentum, highlighted the necessity for extra strong utility inside the ecosystem,” commented Farcana founder and CEO Ilman Shazhaev in a submit on X.
“Till the sport goes dwell, our token has been predominantly pushed by hypothesis – a mannequin that, whereas efficient within the quick time period, doesn’t construct sustainable progress,” he continued. “That’s why FAR has additionally underperformed within the present market.”
On account of releasing its new staking system, FAR has jumped by 24%. It’s additionally reached quantity two as essentially the most traded asset on crypto change Bybit. Though excellent news for the mission short-term, there’s a bigger development plaguing altcoins extra typically, and web3 gaming tokens specifically.
As the next graph exhibits solely six of the highest 20 gaming tokens haven’t declined in worth throughout 2024.
This challenge was additionally lately addressed by Animoca Manufacturers chairman Yat Siu, who’s plainly said that these tokens have failed to achieve traction. Regardless of of – or somewhat due to – an rising market cap for altcoins, the sheer variety of new tokens in 2024 has “significantly diluted general consideration” for particular person altcoins, inflicting weak worth efficiency.
Siu goes on to recommend that institutional participation, akin to within the case of Bitcoin, is crucial for the longevity of those diluted tokens, because it may each enhance belief and usher in substantial long-term capital. A far cry from the speculation-driven buying and selling that’s overshadowed most of crypto gaming tokens up to now.
In the meantime, Shazhaev added, “Staking is simply step one in creating long-term stability and utility for the token.”
“We would like our holders to place their tokens to work whereas we proceed to construct out the Farcana ecosystem, slowly however certainly.”
Customers desirous to stake their FAR tokens want to attach their pockets to Polygon, which can also be considered one of Farcana’s seed traders. Amongst others taking part within the $10 million seed spherical introduced on the finish of 2023 have been Animoca Manufacturers, Fenbushi Capital, and Advantage Circle.