GameFi Token BIGTIME Rallies 250% in First Week; Analysts Raise Supply Concerns

BIGTIME has surged 250% in simply 5 days.

The blockchain-based recreation is quick changing into in accessible to new gamers, one observer mentioned.

The token’s FDV to market cap ratio suggests provide inflation forward.

BIGTIME, the native token of blockchain-powered multiplayer recreation Huge Time, has greater than tripled within the first week of its existence. The market-beating efficiency doesn’t persuade some analysts.

Final Wednesday, the cryptocurrency went reside on a number of exchanges, together with OKX and Coinbase. Since then, its market worth has risen by 254% to $0.251, reaching a excessive of $0.32 at one level on Friday, Coingecko knowledge reveals. Prior to now 5 days, the overall crypto market capitalization has elevated simply 2% to $1.056 trillion.

Huge Time takes its gamers on a journey by means of completely different eras, with a cosmetic-based economic system that places management of the creation and promoting of cosmetics or non-fungible tokens (NFTs) within the palms of the gamers. To start out crafting, gamers first want SPACE or Huge Time’s model of digital land, with utility NFTs – Armory, Forge and Time Warden – connected to it.

Time wardens are workshops for crafting, upgrading and recharging hourglasses, some of the sought-after NFTs, that gamers must obtain BIGTIME tokens.

BIGTIME tokens can be utilized to craft Forge, Armory and enter unique zones referred to as status portals. The cryptocurrency has a complete provide of 5 billion and will be acquired by means of in-game drops. Gamers intending to gather BIGTIME must equip themselves with hourglass collectibles as they undergo adventures.

Per Delphi Digital, solely 5% of the overall provide has been airdropped to gamers and is being traded within the open market, which has possible skewed demand-supply dynamics in favor of the bulls. The value growth, nevertheless, may very well be short-lived.

“The token worth may very well be propped up by limiting the circulating provide for a time, however it would inevitably dump this early into the sport’s lifecycle, and the reputational injury goes to be exhausting to come back again from. This can quickly illustrate the dangers related to launching a fungible token too early in a recreation’s improvement cycle earlier than there are sufficient gamers to soak up the sudden improve in provide,” Delphi Digital mentioned within the weekly report revealed Friday.

The report mentioned that long-term gamers now earn as a lot as $200 to $2,000 per day, so taking part in the sport for enjoyable is now not a consideration and there’s sturdy incentive to money out.

“When confronted with the choice to kill in-game boars so as to earn sufficient gold to improve a bit of armor or to do the identical quantity of labor for an virtually instantaneous money payout if all else stays equal, most rational gamers would select the latter. That is virtually precisely what has occurred in Huge Time,” Delphi famous, including that the sport is quick changing into in accessible for to new gamers resulting from a pointy rise within the worth of NFTs wanted to gather BIGTIME.

The token’s absolutely diluted worth relative to market cap is kind of excessive, indicating a provide inflation and potential sell-side strain.

“The tokenomics are fairly doubtful. Nobody is certain in regards to the actual market cap. The FDV is ridiculously excessive at round $1.2 billion, whereas the market cap is far decrease at round $40 million,” blockchain sleuth Loch mentioned on X.