What is Crotama ? Is It Legitimate?
Play to earn blockchain games have become a major staple of the cryptocurrency industry. These games appear on all blockchains. However, they are overrepresented on Ethereum and the Binance Smart Chain. There are not many play to earn games on other blockchains like Cronos and Avalanche.
Crotama is changing that – it’s a play to earn blockchain game on the Cronos blockchain. There really aren’t that many play to earn games on Cronos, so this puts Crotama in a unique situation. With that in mind, we will cover everything you need to know about this project.
What is Crotama ($CROTAMA)?
Crotama is a blockchain project on the Cronos blockchain. It was launched on April 6, 2022 by an anonymous team. The project currently only has an NFT collection available in the form of mystery boxes, but they do plan on launching a play to earn game at some point in the future.
The mystery boxes come in a few different varieties of rareness:
- Ultimate (0.01%)
- Legendary (0.1%)
- Epic (3%)
- Rare (10%)
- Common (85.99%)
The NFTs rewarded from the boxes will also have the potential to be staked in order to earn $CROTAMA tokens. It’s important to note that only Common mystery boxes can be purchased at any time. All other boxes can only be purchased during special events or promotions.
It’s currently possible to stake Crotama tokens for a fixed APY. The rates are fairly high ranging from 1000% APY to 2000% APY with a lockup period of 4 days to 12 days.
There’s also a 7% tax. The breakdown of where the taxes go is the following:
- 3% to marketing
- 2% to the development team
- 1% to the liquidity pool
- 1% to project development
Other than that, there really is not information available about Crotama because the project is still very early in development. The game has not been released, the NFTs have not been released, and the mystery boxes have not been released.
Our Problems With Crotama
We have some problems with this project. It’s important to note that this project is only a week old, so many of these problems could be resolved in the future. That said, it’s still worth mentioning these issues with the project.
Our first problem with this project is that it has anonymous founders. It’s something that we do not like to see in cryptocurrency projects.
We know this should not be important for Web3, but the reality of the situation is that anonymous founders are far more likely to rug a project than fully doxxed founders.
Basically, anonymous founders are a huge red flag. This is especially true with play to earn blockchain games. We like to see play to earn games from doxxed founders with experience in the video game industry.
Lack of Specifics
Another issue with this project is that the founders do not go into very much detail about anything with the project. They have a roadmap and 4 page whitepaper, but that’s about it.
There is no mention about what the play to earn game will entail nor is there any teaser art for the NFT collection.
It seems like this is more of a staking token than a blockchain game.
Insanely High and Unsustainable APY
The only thing it’s actually possible to do with Crotama tokens is stake them for 1000% APY to 2000% APY.
That’s an extremely high APY. Frankly, it’s an unsustainable APY. The token will rapidly lose value due to inflation with an APY that high.
High Taxes and Weird Distribution
$CROTAMA has a high tax of 7% on what we can only assume is all transactions. The whitepaper does not actually specify when the 7% tax applies, which is a big oversight to make in a whitepaper.
We do not like projects that tax transactions as it has a tendency to hinder growth.
Crotama is also weird because it’s not a meme coin yet still has a tax like most new meme coins. There really is no reason that a play to earn game’s token should have a tax on it. Revenue should be generated by selling NFTs or collecting fee’s on the game’s marketplace and not by collecting a transaction tax on all token transfers.
The most aggravating part about the tax, however, is that the majority of the tax goes to the developers.
3% goes to marketing (developer), 2% goes to the development team, and 1% is used for development (paying developers?).
We could understand if the tax was used for a token buy back or added to the liquidity pool, but the tax breakdown makes it look like the tax is a clever way for the project to siphon money off of investors.
Is $CROTAMA a Good Investment?
No, we would not consider $CROTAMA a good investment. It has an anonymous founder, lacks any sort of information about how the developers plan on launching making this token popular, and it has an unsustainably high staking reward.
The four page whitepaper does not reassure us about the dedication the team has to see this project through to the finish.
To us, the lack of details about the game indicates that this project will most likely not release a game. They may release an NFT because that can be profitable, but a game seems unlikely.
It’s a shame because Cronos does not have any wildly successful play to earn game on it. Crotama would have the potential to be the dominant game if the developers actually take the project seriously.
We just find it extremely unlikely that these developers will take this project seriously.
Crotama is basically a staking token that makes very vague promises about launching an NFT collection and NFT game to launch it to success. The reality of the situation is that it will most likely go where every staking token before it has gone – to zero.