Endless Clouds just launched its $END token, adopting a decentralized exchange (DEX)-first launch model accompanied by a high circulating supply. This approach generated considerable market attention, but also exposed the many challenges projects in the crypto gaming space continue to face.
The launch included a 31.1% circulating supply, which was allocated generously to the community, including players and NFT holders. This model carried inherent risks in the current market environment, where tokens distributed through airdrops frequently experience immediate selling pressure due to the limited incentive for holders to retain their tokens.
What Happened to Treeverse's $END Token?
What Happened to Treeverse's $END Token?
The whitepaper positions $END as an ecosystem token that functions as premium currency across games developed by the Endless Clouds Foundation, starting with Treeverse. The token provides access to cosmetic items and exclusive content within the game. Future applications may include physical merchandise sales or on-chain asset transactions, though these use cases remain under development.
The token operates similarly to in-game currencies like vBucks in Fortnite or VP in Valorant, with the critical difference that $END exists as a tradable, on-chain asset. The foundation has stated that no other native token is planned for Treeverse or upcoming titles, aside from standard off-chain soft currencies used for basic in-game progression. This design makes $END the central pillar of the Endless Clouds gaming economy.
What Happened to Treeverse's $END Token?
Reasoning Behind the DEX-First Launch Model
Endless Clouds launched $END primarily on decentralized exchanges after failing to secure a listing on a top-tier centralized exchange (CEX). The team also determined that allocating a percentage of the token supply for a tier-two CEX listing didn't offer sufficient value.
This pushed them toward a DEX-first strategy, which typically involves fewer listing barriers but often brings increased volatility and liquidity challenges. The substantial circulating supply at launch amplified the risk of early sell-offs, making it difficult to balance sell pressure against buy demand.
What Happened to Treeverse's $END Token?
Marketing Strategy and Launch Details
The token launch campaign was largely driven by the founders and content marketing efforts, extending over five weeks. Some delays caused the campaign to stretch beyond the initial schedule, and it took place shortly after the project's play-to-earn season.
The studio spent little on paid marketing or partnerships with key opinion leaders (KOLs), relying instead on Loopify's existing credibility and the support of the current community. This approach limited external promotional reach but reflected a cautious use of resources in a challenging market.
At launch, the fully diluted valuation (FDV) of $END sat at approximately $30 million but quickly dropped to around $10 million as airdrop recipients began selling their tokens. Investors who participated in the latest funding round faced losses, given the previous valuation had been around $70 million FDV. Despite this early decline, the project has announced that no new token supply will be unlocked for the next six months, a measure intended to reduce short-term selling pressure.
What Happened to Treeverse's $END Token?
Community Response and Future Outlook
Loopify, the project lead, addressed the community directly, emphasizing transparency and asking supporters not to dismiss the project. The message highlighted a commitment to openness about the project's current stage and the vision for development. The web3 gaming community considers Loopify a credible developer with a genuine interest in the project's success.
The token launch appears to have been timed under less favorable market conditions, which contributed to its initial challenges. Some industry watchers are hopeful that $END may follow a trajectory similar to the XBG token launch, which also began with a DEX-first approach and experienced early volatility before stabilizing as initial sell-offs subsided.
What Happened to Treeverse's $END Token?
Final Thoughts
The launch of the $END token by Endless Clouds illustrates the ongoing difficulties blockchain gaming projects face in navigating token launches, particularly under current market conditions. The choice of a DEX-first launch, combined with a high initial circulating supply and limited marketing investment, has led to significant sell pressure and valuation decline.
However, with measures such as token lockups and a focus on community transparency, the project aims to stabilize and build momentum. This case highlights the complex dynamics between tokenomics, exchange listings, and community support that shape the prospects of gaming tokens in the web3 ecosystem.
