Following the launch of Immortal Rising 2’s IMT token on 28th March, its price has seen a steady 53% drop.
Although not expecting a strong initial upward trajectory, the sharp decrease has “even” surprised Planetarium Labs CEO JC Kim, who has penned down an official ‘Message from the CEO’ in response.
Although lower than expected, Kim explains why the price drop was an expected outcome, as Planetarium, the publisher of Immortal Rising 2, intentionally aimed to avoid a high FDV launch. This basically means it didn’t try pump the token’s theoretical pre-launch valuation. Instead, it took an organic approach, which Kim says used to be the gold standard for launching tokens in web3 gaming until the high-FDV launches became common practice.
Although clearly understanding that a higher launch price would be more satisfying for IMT airdrop recipients, as well as benefit the developer’s own cash bags, this was never an option for the team. Indeed, the high-FDV practice is key to “why web3 gaming is quietly dying”, as Kim puts it.
Another problem Kim points out is how web3 game developers opt to list their tokens on centralized exchanges from day 1 of launch. This strategy creates intentionally inflated token prices which is beneficial only in the short term, and only for the teams and investors themselves. The obvious losers are day 1 buyers.
“High FDV token launches are structured so that project teams and early contributors effectively scam Day 1 buyers,” he says.
As a reassuring conclusion, he also states that Planetarium is not worried. The team has not sold a single IMT token since launch, and remains focused on supporting its community and building great games for years to come.
“Ideally, we’d embrace everyone, but if choices must be made, prioritizing long-term holders and stakers is healthier.”