The Rise of Tap-to-Earn Games on Telegram
Telegram's tap-to-earn games are gaining significant traction and are seen by investors as a key driver of mass adoption for Web3. These games, such as Hamster Kombat, Tapswap, Catizen, and Pandas Tap to Earn, offer players the ability to earn cryptocurrency rewards through simple in-game actions like tapping or completing quests.
Key Advantages of Tap-to-Earn Games
Low barrier to entry: Tap-to-earn games require minimal effort and time investment compared to traditional play-to-earn models, making them more accessible to a wider audience.
Leveraging existing user base: By integrating with Telegram's social layers and tapping into where people already spend their time, tap-to-earn games can quickly reach a large user base.
Onboarding new crypto users: Approximately 50% of players in Telegram's tap-to-earn games are new to crypto, indicating their potential for mass adoption.
Sustainable revenue model: Tap-to-earn games are seen as an effective onboarding tool and lucrative revenue source for projects, even before launching their core products.
Investor Confidence in Tap-to-Earn Games
Prominent investors and gaming studios are backing the tap-to-earn trend:
- Animoca Brands, a leading Web3 gaming studio and venture capital firm, views Hamster Kombat's success on Telegram as a key breakthrough for Web3 adoption.
- Sonic Labs, backed by over $10 million from investors like Hashed and SoftBank, is encouraging users to engage with its platform in anticipation of an upcoming airdrop.
- Arcium, with $9 million in funding from Coinbase Ventures and Jump Crypto, is running a six-week campaign focused on educational initiatives to onboard new users.
Challenges and Opportunities
While the sustainability of the tap-to-earn trend is being questioned, projects are exploring ways to educate and retain users, such as acting as game publishers, quest platforms, or offering e-commerce and trading products. Telegram and its blockchain partner TON remain open to various game types and genres, but mass adoption will likely be driven by a select few tap-to-earn games.
In conclusion, Telegram's tap-to-earn games are seen by investors as a promising path to mass adoption for Web3, thanks to their low barrier to entry, ability to leverage existing user bases, and potential to onboard new crypto users. As the space continues to evolve, the success of these games will depend on their ability to provide long-term value and engage their growing user base.