Big Time’s BIGTIME Token Skyrockets, but Analysts Express Doubts about Long-Term Viability

Big Time’s BIGTIME Token Skyrockets, but Analysts Express Doubts about Long-Term Viability

Crypto News – In its inaugural week, the native token of the blockchain-based multiplayer game Big Time, known as BIGTIME, experienced an impressive surge, more than tripling its value. However, this remarkable performance has not convinced all analysts of its sustainability.

Last Wednesday marked the launch of the cryptocurrency on various exchanges, including OKX and Coinbase. Since its launch, the market price of BIGTIME has seen an astonishing rise of 254%, reaching $0.251 and peaking at $0.32 at one point on Friday, as per data from Coingecko. In the past five days, the overall cryptocurrency market capitalization has only increased by 2%, reaching $1.056 trillion.

Big Time immerses its players in a captivating journey through different eras, featuring a cosmetic-based economy that allows players to have control over the creation and sale of cosmetics or non-fungible tokens (NFTs). To initiate crafting, players require SPACE, which is Big Time’s version of virtual land, along with utility NFTs such as Armory, Forge, and Time Warden.

Time wardens serve as crafting workshops, enabling players to craft, upgrade, and recharge hourglasses, which are highly sought-after NFTs necessary for acquiring BIGTIME tokens. BIGTIME tokens, in turn, are utilized for crafting Forge and Armory, as well as accessing exclusive zones called prestige portals. The cryptocurrency boasts a total supply of five billion and can be obtained through in-game drops. Players seeking to accumulate BIGTIME need to equip themselves with hourglass collectibles during their adventures.

According to Delphi Digital, only 5% of the total supply has been airdropped to players and is currently being traded in the open market. This skewed demand-supply dynamics in favor of the bulls, contributing to the significant price surge. However, analysts warn that this price surge might be short-lived.

Delphi Digital expressed concerns in their weekly report, stating, “The token price could be artificially propped up by limiting the circulating supply for a time, but it will inevitably experience a sharp decline early in the game’s lifecycle. The resulting reputational damage could be challenging to recover from. This situation highlights the risks associated with launching a fungible token too early in a game’s development cycle, especially before there are sufficient players to absorb the sudden increase in supply.”

The report also noted that long-term players are now earning substantial amounts, ranging from $200 to $2,000 per day, making playing the game purely for enjoyment less common. There is a strong incentive to cash out, given the lucrative opportunities.

“When faced with the choice between spending time in-game to earn gold for upgrading equipment or opting for an almost instant cash payout for equivalent effort, most rational players opt for the latter. This is precisely what has occurred in Big Time,” stated Delphi, underscoring that the game is quickly becoming less accessible to new players due to a sharp rise in the price of NFTs required to collect BIGTIME.

The fully diluted value of the token relative to the market cap is considerably high, indicating supply inflation and potential sell-side pressure.

“The tokenomics are raising doubts. The exact market cap remains uncertain. The Fully Diluted Valuation (FDV) is notably high at around $1.2 billion, while the market cap is considerably lower, at approximately $40 million,” mentioned blockchain analyst Loch on X.”