What Happened to Treeverse's $END Token?

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?

According to the whitepaper, $END is designed as an ecosystem token meant to serve as a premium currency across games developed by the Endless Clouds Foundation, beginning with Treeverse. The document outlines how the token will be used to access cosmetic items and exclusive content within the game. It may also be used in future sales involving physical merchandise or on-chain assets, though specific use cases for these remain to be fully detailed.

The token functions similarly to in-game currencies like vBucks in Fortnite or VP in Valorant, but with the key distinction that $END is a tradable, on-chain asset. The foundation emphasizes that no other native token is currently planned for use in Treeverse or other upcoming titles, aside from standard off-chain soft currencies typically used for basic in-game progression. The approach reinforces the role of $END as a central element of the Endless Clouds gaming economy.

What Happened to Treeverse's $END Token?

Reasoning Behind the DEX-First Launch Model

The decision to launch $END primarily on decentralized exchanges came after Endless Clouds was unable to secure a listing on a top-tier centralized exchange (CEX). Additionally, the team did not see sufficient value in offering a percentage of the token supply in exchange for a listing on a tier-two CEX.

This led them to prioritize a DEX-first approach, which typically involves fewer listing barriers but often comes with increased volatility and liquidity challenges. The significant circulating supply at launch heightened the potential for early sell-offs, making the balance between sell pressure and buy demand difficult to maintain.

What Happened to Treeverse's $END Token?

Marketing Strategy and Launch Details

According to GamingChronicles, 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.

Notably, the studio appeared to spend 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 was approximately $30 million but quickly dropped to around $10 million as recipients of the airdrop began to sell their tokens. Investors who participated in the latest funding round faced losses, as 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 consider Loopify to be 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.