The GUN token tied to popular battle royale game Off the Grid launched Monday with the mainnet rollout of the Avalanche L1-based GUNZ gaming network. And ahead of the in-game mainnet integration, GUN has continued to fall in value over the course of the day.
GUN is currently priced just above $0.76, down over 24% since launch per data from CoinGecko. GUN rose as high as $0.115 earlier Monday, but then has dipped by nearly 34% in the hours since touching that peak.
It’s common for newly launched tokens to quickly peak and then lose value as more users get their hands on the coins and start trading them into the market. But the GUNZ launch has left some as-yet-unanswered questions that may also be driving concerns around the full extent of the rollout.
While the GUNZ network has launched its mainnet and the GUN token is now actively being traded, Off the Grid—the game on PC, PlayStation 5, and Xbox—still has yet to make the transition from testnet to mainnet.
Bringing the GUNZ mainnet into Off the Grid will unlock the ability to trade in-game items as NFTs—which some enterprising players have preempted via a thriving black market around the game ahead of the mainnet rollout. The game’s update will also enable use of GUN as a proper crypto token. It currently acts much like an in-game currency, and players’ GUN balances are set to be wiped in the transition to mainnet.
Gunzilla Games did not immediately respond to Decrypt‘s questions regarding the timeline for Off the Grid’s mainnet launch.
In the GUNZ Discord server earlier Monday, Gunzilla Games Director of Web3 Theodore Agranat told players that the “migration of game to mainnet will be worked on now,” but did not specify an ETA for the transition.
Just over 6% of the total supply of 10 billion GUN tokens are in circulation as of this writing, with much of that circulating supply dedicated to the Binance Launchpool rewards campaign for users of that crypto exchange.
Such a small float means that the market cap for GUN sits below $47 million as of this writing, though the fully diluted valuation or FDV for the token is currently around $760 million—and peaked above $1 billion earlier in the day.
As of this writing, GUN is ranked as the 662nd most valuable overall cryptocurrency based on market cap. However, its FDV outranks many of the most valuable gaming tokens with much larger circulating supplies, such as Gala Games (GALA), Axie Infinity (AXS), and Ronin (RON).
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