Karrat token experiences a surge yet concerns of dilution and concentration persist
Karrat, a gaming token with a smaller market cap, has experienced a notable rise over the past two days, achieving its highest value since August 24.
The token, known as KARRAT, has surged by more than 65% from its year’s lowest point, elevating its market capitalization to over $48 million. Nevertheless, it still remains around 68% below its record peak.
This resurgence coincided with a notable uptick in several prominent gaming tokens. Immutable X (IMX) has seen a remarkable increase of over 44% in the past week, while Beam (BEAM) has surged by 15.7% during the same timeframe. Additionally, other gaming platforms like Gala Games (GALA), The Sandbox, Ronin, and ApeCoin have all recorded gains exceeding 15%.
Karrat’s rally was further fueled by the launch of the Hooligans and Zuckbot NFTs on the My Pet Hooligan platform, a well-known non-fungible token marketplace. According to data collected by CryptoSlam, My Pet Hooligan’s NFT sales reached $174,393 in the last month, with a remarkable 88% increase in their 24-hour sales, which amounted to $9,575.
The recovery of Karrat also aligned with a shift in the cryptocurrency fear and greed index, which moved from a fear level of 34 last week to a neutral score of 51, following a 0.50% interest rate cut by the Federal Reserve. This monetary easing contributed to a general rise in cryptocurrency values, with Bitcoin climbing to $64,800, marking its highest level in over a month.
Karrat, which focuses on gaming and NFTs, gained attention in June when it announced a partnership with Palantir, the tech firm backed by Peter Thiel. Under this collaboration, AMGI Studios, a significant player in Karrat’s ecosystem, will leverage Palantir’s infrastructure in its offerings. This announcement came shortly after a partnership with Nvidia the previous month.
However, similar to Jupiter, a key concern regarding Karrat is the concentration of holdings among major investors. Data from CoinCarp indicates that the top ten holders control a staggering 92% of all coins in circulation. As of September 23, the total number of wallet addresses has increased to 5,572, the highest level since September 12.
Another potential risk is the anticipated substantial token dilution in the coming years. Karrat has a maximum supply cap of 1 billion tokens, with only 116 million currently circulating. The next unlocking of coins is set for October 19, followed by an additional 25 million tokens being released in the last two months of the year.
Karrat’s token unlock schedule will conclude in October 2028, indicating that current holders should brace themselves for significant dilution, as each token unlock increases the total number of coins in circulation.
