The utility game token TOWER skyrockets by 102% on a rally fueled by Animoca Brands CEO Yat Sui’s recent buyback announcement. How far can the rally go?
Summary
- TOWER surges by 102% following news of Animoca Brands initiating a token buyback.
- The token has been on an ongoing rally after its game Crazy Kings gains traction on-chain.
On August 5, Animoca Brands founder and CEO Yat Sui announced that the web3 firm is planning to buyback an undisclosed amount of tokens from the gaming project’s ecosystem. This buyback plan comes after Animoca’s earlier token buyback venture for another of its gaming ecosystems, Cross The Ages.
“Web3 gaming is alive and important to the development of on-chain economies. Just as we announced with $CTA earlier in the year we are going to buy $TOWER in the open market,” said Siu in his recent post on X.
The reason behind the buyback was attributed by Siu to the fact that Tower Token was one of the first community web3 gaming tokens established by Animoca Brands. Siu states that it is now trending after its Wreck League game climbed to number one on the Base (BASE) App and Farcaster in terms of social traction.
The announcement has helped to further fuel the rally its been on since the beginning of the month. At press time, the token has surged as high as 102% in the past 24 hours, reaching a peak of $0.00093.As it nears the $0.001 threshold, it is currently trading 99.36% below its all-time high of $0.14.
Today’s token surge has far surpassed its weekly and biweekly gains. The token has been on the rise; going up by 60.3% in the past week and 40.9% in the past two weeks.
Even its daily trading volume has enjoyed a significant increase following the recent price surge. Data from CoinGecko shows that the daily trading volume for TOWER has gone up by 241.9% compared to just one day prior. This represents a recent rise in market activity following the buyback announcement.
How high will the TOWER rally climb?
Considering Tower’s Wreck League has managed to become the number one trending game on the Base App and Farcaster, the utility game token has already been on the rise since the beginning of the month.
In the past 30 days, the token has gone up by 157.6%. At the beginning of August, just before it dropped into a slump, the token suddenly spiked. This meteoric rise represents news of the buyback plan initiated by parent company Animoca Brands, which seemed to add fuel to the already brewing fire.
The buyback, seen as a vote of confidence from one of the most influential figures in Web3 gaming industry, has triggered renewed investor interest in TOWER, particularly as it remains a micro-cap token with a relatively small market cap and low liquidity. This means that the token is highly responsive to even modest market activity.
As the token’s price is headed towards the $0.001 mark, the question becomes whether this rally can sustain itself or if the spike will be short-lived. The upward trend might continue, but it would require strong follow-through: significant buyback volume, ongoing liquidity inflows, and tangible user demand within Crazy Defense Heroes or other connected games.
What is TOWER?
TOWER is a utility and governance token of the Crazy Kings and Crazy Defense Heroes mobile game series, developed by Animoca Brands. It is part of a broader effort to merge traditional mobile gaming with blockchain-based game economies.
It serves multiple purposes within games, including to buy and upgrade NFTs in-game, governance, play-to-earn, as well as for staking and rewards.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
