The GUN token, associated with the popular battle royale game Off the Grid, made its debut on Monday with the launch of the Avalanche L1-based GUNZ gaming network. However, the value of GUN has been on a downward trend since its launch, currently sitting just above $0.76, a 24% decrease from its peak of $0.115 earlier in the day.
It is not unusual for newly launched tokens to experience fluctuations in value as more users enter the market. However, the GUNZ launch has raised some unanswered questions that may be contributing to concerns about the overall rollout.
Despite the mainnet launch of the GUNZ network and active trading of the GUN token, Off the Grid has not yet transitioned from testnet to mainnet. This transition will enable the trading of in-game items as NFTs and establish GUN as a legitimate crypto token. Players’ GUN balances will be reset during the transition to mainnet, which has led to a burgeoning black market for in-game items ahead of the update.
Gunzilla Games, the developer behind Off the Grid, has not provided a specific timeline for the game’s mainnet launch. Theodore Agranat, Director of Web3 at Gunzilla Games, informed players in the GUNZ Discord server that the migration to mainnet is currently underway, but did not specify a deadline for completion.
Only 6% of the total supply of 10 billion GUN tokens are currently in circulation, with a significant portion allocated to the Binance Launchpool rewards campaign. This limited circulation has resulted in a market cap below $47 million, while the fully diluted valuation of the token exceeds $760 million.
As of now, GUN is ranked as the 662nd most valuable cryptocurrency by market cap. However, its fully diluted valuation surpasses many other gaming tokens with larger circulating supplies, such as Gala Games, Axie Infinity, and Ronin.
The future of GUN and its integration into the Off the Grid game remains uncertain, but the launch of the GUNZ network marks the beginning of a new era for Web3 gaming. Stay tuned for updates on the progress of GUN and its impact on the gaming industry.