My Worst CryptoGaming Investment of 2022

Feeling down after getting Wrecked? In this article, you can read about my worst crypto gaming investment for 2022, and how I plan to bounce back! 

Chumbi Valley - enchanting role-playing blockchain game
Chumbi Valley – blockchain game

Losses are the biggest learning opportunities in your journey as an  investor. 

After the Terra Luna crash, Chumbi Valley is the biggest loss I experienced, and we are going to explore what went wrong with this project.

Red Flags

  • The idea itself was quite good, however the team had no understanding of tokenomics. 
  • The team itself consisted of 7 people and 5 advisors – not very balanced.
  • The roadmap has no dates, with only ‘Stages’ displayed. 
  • The IDO of Chumbi Valley was done on KuCoin, which made the token pump initially. However, the token crashed not long after, and staking did not make things better. 

My loss

The price of $CHMB is now $0.001 compared to $0.21 in the bull run (90% devaluation). 

My investment of $11,000 is now only worth $90. 

You may say that the market is extremely bearish now. That is true, and a lot of projects have lost their value. However, non as much as Chambi Valley, and there is a very specific reason behind it.

What happened 

The project’s roadmap is very long. The current fully diluted market cap is $50,853,531. It is impossible to continue with such a high market cap. To cut the supply, the team introduced loot boxes (basically diluting their NFT value) and staking with insanely high ARP (further diluting token value due to increased circulation).

I made my entry at the second all-time high, and the reason for such an entry was simple – FOMO without proper research. Looking back, I would say that the tokenomics were what led to this project crashing. 

The lesson I learned from this loss is that even if the litepaper and the game look good, the team and tokenomics are still very important. 

At the moment I do not see any point in selling the tokens, so I will stay with this investment to see if they do any token burns to make things better (hopium!).

DISCLAIMER: Please be advised that I am not a professional advisor in business areas involving finance, cryptocurrency, taxation, securities and commodities trading, or the practice of law. The information and content written, broadcasted, and/or disseminated by and through “The Author of this article, DigitsBrand, DigitsMainframe, DigitsBlog, Colin Dijs, Colin Digits, ItsDigits” is intended FOR GENERAL INFORMATION PURPOSES ONLY. Nothing written or discussed is intended to be construed, or relied upon, as investment, financial, legal, regulatory, accounting, tax or similar advice, nor should it be. All content expressed, created, and conveyed by “”The Author of this article, DigitsBrand, DigitsMainframe, DigitsBlog, Colin Dijs, Colin Digits, ItsDigits” is premised upon subjective opinions pertaining to currently-existing facts readily available. All figures and statistics are current at the time of writing.

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