What Happened to Crypto Legions v3 and the Next Steps

This report will provide a full analysis of what happened to the Crypto Legions BLV3 token leading up to 29 October 2022. Major sell-offs by very large players and investors over the last days/week created mass panic among our players, who followed the lead of larger players and also have begun dumping their holdings and in-game rewards relentlessly, which has caused even more panic. This constant sell pressure has made the BLV3 chart reach a point where it is no longer recoverable and due to the low price players quickly depleted the Reward Pool. This all happened quickly and before the team was able to carry out their plan of listing on a top 10 exchange to reverse the downtrend. Unfortunately experienced P2E investors have all seen this situation many times before where players continuously sell their rewards creating a death spiral for the token, other players are also forced to follow the trend and sell to protect their capital.

THE SITUATION:

REASON 1.
The team requested people several times in the past to sell responsibly (small amounts over time), to preserve the longevity of the game, but as you can see many players and traders have ignored this important request.

If everyone worked together and followed Nadodo’s 5 Commandments which include requesting people to sell slowly in order to avoid panic, then the game would have survived an extremely long time. However, as you noticed many traders/players have not been following these guidelines.

We do understand why investors are more fearful given the current crypto winter that has been going on for many months now.

Nadodo tried to incentivize players to reinvest their rewards through a discounted summoning fee, for many days, but that didn’t help.

The sell-off piling up over the last few days has sparked a chain reaction causing panic among many other investors and players, who have also begun claiming their rewards and selling their tokens causing even more downward price action. Nadodo didn’t want to implement a high sales tax as the team had secured a top 10 exchange listing for BLV3, which they’ve wanted to give to their community since the previous version of the game, which would have a great positive impact on the price of the token and the overall image of the project. After finally being approved and able to list on the exchange, the token price has been dumped to a state where it has forced the players to enter the Reincarnation process.

REASON 2.
Another big reason is also that the token price was pumped very aggressively at the launch of game, which allowed many players to summon (mint) when they were already on huge amounts of profit (up to 12x for presale buyers depending on when they minted). The fact that on average players double their money every 2 weeks by playing the game means players have ended up with huge amounts of profit extremely quickly. As you can see, many of them have decided to take profits in an irresponsible way, regardless of our repeated requests, before waiting for the planned exchange listing.

REASON 3.
Another reason for the BLV3 token reincarnating earlier than expected is that many people from our community did not want us to launch the Big Crypto Game while BLV3 was live. As only Crypto Legions V3 was live at one time, too many players joined early on and the game became oversaturated extremely quickly, it wasn’t allowed to have slow, natural growth as we experienced in Crypto Legions V3. We want to clarify that if the Big Crypto Game would have been launched, it would have spread our player base more, this would have prevented Crypto Legions v3 from becoming so oversaturated in the first weeks.

We saw many players asking to increase the 0% sell tax, but the token has been approved for a top 10 exchange listing, planned for next week, which really expected to keep a 0% tax. We thought players/traders would not be selling/panicking now, and wait patiently for a top 10 exchange listing that we announced to happen soon and that we have been approved for.

THE RESULT OF THE SITUATION:

This caused the Reward Pool to start draining extremely quickly. Which caused even more panic among more players, resulting in them claiming their rewards, selling them and the rewards pool being depleted by the players.

A trigger of the Reincarnation process starting is when the Rewards Pool health becomes critical, as explained in our whitepaper: https://docs.cryptolegions.app/new-updates-in-v3/reincarnation.
After the rewards pool was emptied by the players our team quickly wrote up an announcement to give clarity to our investors over the best next steps to take.

IMPORTANT TO NOTE:

We did NOT sell any development & marketing tokens. We did NOT sell anything from the team wallets. We did NOT touch/remove any money from the Liquidity Pool.

The development team has been paid from the Hunt Tax, and our own resources, which we were hoping to recover all later on after the planned top 10 exchange listing.

We only used a little BLV3 for small marketing expenses and necessary costs that were done in the last 4 weeks, which you can check in the Transparent Tokenomics links here: https://docs.cryptolegions.app/transparent-tokenomics

WHAT HAPPENS NEXT:

We are here for you, and we want to be the best possible example in the P2E space of how to handle a crisis situation. We’ve already received some great ideas from our community about how we can give the games more longevity in the future and are actively working on these behind the scenes to improve the gaming experience and longevity for our investors.

Over the 32 days that the Crypto Legions v3 game was live, over $1.8 million was earned by players, and over $1.5 million was claimed to their Metamask wallets (and likely sold) this was amplified by the fact that the majority of the rewards were held by a relatively small amount of whale players and when they claimed and sold it created the panic among other players and holders. We will be exploring implementing more anti-whale mechanisms into all of our future games to avoid this situation from happening again.

We are looking forward to working together with our community to implement solutions to the problems mentioned above in the next versions of our games, and to keep building with our Samaritan players who contribute collaboratively to a healthy game economy through intuitive new systems such as our Samaritans First System https://docs.cryptolegions.app/new-updates-in-v3/samaritans-first

On Monday 31 October everyone will be able to participate in a public survey through which we will find out the preference of our community about the upcoming launch(es) and ideas for more longevity for the upcoming game(s). Based on the survey results we will communicate the launch date of the upcoming game(s) in the coming month.

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