In a bid to show round its lagging momentum, UAE-based staff shooter Farcana has launched a brand new FAR token staking program.
Providing 60% APR on staked FAR, this system is likely 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 effectively, 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 sturdy utility throughout the ecosystem,” commented Farcana founder and CEO Ilman Shazhaev in a put up on X.
“Till the sport goes reside, our token has been predominantly pushed by hypothesis – a mannequin that, whereas efficient within the quick time period, doesn’t construct sustainable development,” he continued. “That’s why FAR has additionally underperformed within the present market.”
Because of releasing its new staking system, FAR has jumped by 24%. It’s additionally reached quantity two as probably the most traded asset on crypto alternate Bybit. Though excellent news for the undertaking short-term, there’s a bigger pattern plaguing altcoins extra usually, and web3 gaming tokens specifically.
As the next graph reveals solely six of the highest 20 gaming tokens haven’t declined in value throughout 2024.
This challenge was additionally not too long ago addressed by Animoca Manufacturers chairman Yat Siu, who’s plainly acknowledged that these tokens have failed to realize traction. Regardless of of – or fairly due to – an rising market cap for altcoins, the sheer variety of new tokens in 2024 has “vastly diluted general consideration” for particular person altcoins, inflicting weak value efficiency.
Siu goes on to counsel that institutional participation, akin to within the case of Bitcoin, is crucial for the longevity of those diluted tokens, because it might 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 absolutely.”
Customers eager to stake their FAR tokens want to attach their pockets to Polygon, which can be one in all Farcana’s seed buyers. Amongst others collaborating within the $10 million seed spherical introduced on the finish of 2023 have been Animoca Manufacturers, Fenbushi Capital, and Advantage Circle.
