Community Gaming launches CGX token, Forkast prediction market
CG CEO says claims of insiders selling the token are “100% false”
Community Gaming and Adobe stock modified by Blockworks
This is a segment from The Drop newsletter. To read full editions, subscribe.
Community Gaming, a crypto-powered gaming platform, launched a prediction market (PM) called Forkast on Ronin this week. Forkast will use the CGX token and let users bet on different real-world outcomes in gaming and influencer culture.
But some traders on Crypto Twitter accused the Community Gaming team and affiliated insiders of selling off the token — before regular users had the chance to claim it early Wednesday morning.
Massive interest in the token took their website down, making new distributions to retail impossible until the site was restored.
Over half a dozen posts from different accounts asked the team who was selling the token because its price had already slipped from $0.3 to $0.03 the morning the token launched. On Wednesday, it was down 70% from its all-time high. Now, it’s already at $0.009 — a 90% decline from its ATH.
Community Gaming founder and CEO Chris Gonsalves tells me that neither the team nor its investors have sold their allocations of the token.
“The only entities that have tokens [besides the team, investors, and influencers] are the exchanges themselves who distributed through their listing promotions,” he said Wednesday morning while the website was down.
The token is available on Gate, MEXC and Katana.
“So those traders and the site going down is causing bad price action but any FUD about insiders selling is 100% false. Team tokens are locked for 18 months and all investors for 12 months,” Gonsalves said, adding:
“We sent out 8 creators payments (total of ~25k in CGX tokens) simultaneously when the claim process started and the site crashed right after that so people are sharing a screenshot of that but none of them did anything with those tokens so it’s just poor optics.”
Ronin’s blockchain scanner shows me that creators Kyroh, Inspectormnbl, and Raiden are still holding their allocations as of Thursday morning.
A big selloff could mean that those who get allocations of the token don’t see value in holding it long-term. Or, they could just be farmers looking for a quick buck. A tale as old as time in crypto.
If you do end up getting some CGX and don’t want to toss it into the prediction market or sell it just yet, Forkast is promising those who stake CGX various rewards including monthly loot boxes with platform credits, Community Gaming tournament access, and governance participation in Community Gaming’s upcoming player-versus-player (PVP) blockchain.
Yep, that’s right — Ronin is getting an L2 blockchain, PVP. It’s intended for competitive gaming apps, according to the team. The chain will be governed by CGX DAO as well as the PVP Council, as well as anyone who stakes their CGX tokens.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- The Drop: Apps, games, memes and more.
- Lightspeed: All things Solana.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
