Telegram gaming has exploded in popularity, with tap-to-earn titles like Hamster Kombat attracting millions of players seeking crypto rewards.
The Signal:
• Tap-to-earn games on Telegram have seen massive adoption, with titles like Hamster Kombat and Notcoin drawing hundreds of millions of players.
• These games offer a low barrier to entry compared to previous play-to-earn models, requiring only a smartphone and Telegram app to participate.
• While hugely popular, tap-to-earn faces challenges around gameplay depth and long-term sustainability once initial hype and token airdrops fade.
The Rise of Tap-to-Earn Gaming
Telegram’s gaming ecosystem has witnessed an unprecedented surge in recent months, with tap-to-earn titles emerging as the latest craze in the world of crypto gaming. Games like Hamster Kombat and Notcoin have attracted staggering player numbers, reportedly engaging over 300 million users in a matter of months.
This rapid rise marks a significant shift from the play-to-earn model popularized by games like Axie Infinity during the last crypto bull run. Where play-to-earn games often required substantial up-front investment to participate, tap-to-earn titles on Telegram have dramatically lowered the barrier to entry.
Robbie Ferguson, CEO of gaming network Immutable, explained the appeal:
“Tap-to-earn games offer a promising improvement over traditional play-to-earn models through their simplicity and accessibility. These games significantly lower the entry barrier, especially for crypto newcomers. This approach aims to create more sustainable economies from the start, potentially avoiding some of the challenges faced by play-to-earn models.”
Indeed, the simplicity of tap-to-earn appears to be a key driver of its explosive growth. Players need only a smartphone and the Telegram messaging app to start participating, with no initial financial investment required. This accessibility has allowed tap-to-earn games to tap into the massive casual gaming market, which accounts for 63% of gamers in the US according to Exploding Topics.
Gameplay Mechanics and Rewards
The core gameplay loop of most tap-to-earn titles is straightforward – players repeatedly tap their screens to earn in-game coins or points, which can eventually be converted to cryptocurrency tokens via airdrops. Hamster Kombat, one of the most popular games in this new wave, exemplifies this simple formula.
As one industry observer noted:
“Hamster Kombat, for example, simply requires you to repeatedly click the screen and select the best upgrades to passively earn tokens—this is the basic loop most tap-to-earn games employ.”
This simplicity has proven highly engaging for millions of players. However, it has also led to some creative workarounds, with reports of players using massage guns to automate their tapping or employing software scripts – practices that may risk disqualification from token airdrops.
The promise of crypto rewards has been a major draw for players. Notcoin, an early entrant in the Telegram gaming boom, saw its token reach a market cap of nearly $3 billion shortly after launch. More recently, Hamster Kombat’s HMSTR token logged over $1.2 billion in trading volume within 24 hours of its debut.
Challenges and Sustainability Concerns
While tap-to-earn gaming has seen explosive short-term growth, questions remain about its long-term viability and ability to maintain player engagement.
Andrew Saunders, chief marketing and growth officer at Skale Labs, voiced some of these concerns:
“Tap-to-earn is the new shiny object generating a surge of interest, but they often fall short in maintaining long-term user engagement. To truly revolutionize Web3 gaming, developers must fuse the instant gratification of tap-to-earn with deeper, more engaging experiences, ensuring that players stay captivated long after the novelty wears off.”
The shallow nature of most tap-to-earn titles stands in stark contrast to more complex play-to-earn predecessors like Axie Infinity. While this simplicity has aided mass adoption, it may struggle to keep players invested once initial excitement and token airdrops subside.
There are also questions about the economic models underpinning tap-to-earn games. Unlike play-to-earn titles that often relied on new player inflows to sustain their economies, tap-to-earn games are exploring alternative revenue streams.
Alena Shmalko, ecosystem lead at The TON Foundation, explained:
“The economic model of tap-to-earn is completely different and is based on advertising—as simple as that. Each app needs to create ways for token holders to further extract value, and make sure they are ready to pay for it.”
This shift towards advertising-based models may offer more sustainability than previous play-to-earn experiments. However, the true test will come in the months following initial token distributions, as games seek to retain players and maintain token value.
Looking Ahead: Evolution or Passing Fad?
As the tap-to-earn phenomenon continues to unfold, the crypto gaming industry finds itself at a crossroads. Will these hyper-accessible games evolve into more engaging experiences that can sustain long-term player interest? Or will they fade into obscurity once the initial hype dissipates?
Some projects are already looking beyond simple tapping mechanics. Notcoin, for instance, has partnered with other game developers in a bid to become a “Netflix of sorts for launching new crypto games.” Hamster Kombat is exploring expansion beyond Telegram and the launch of additional games.
These efforts to diversify and deepen the tap-to-earn experience may prove crucial in determining whether the model has staying power. As Shmalko noted:
“Time will show how tap-to-earns manage to create new economic models which prove themselves sustainable after the token generation event. Otherwise, they will face the same fate as play-to-earns—once the hype is over, there will be no demand for the product.”
For now, tap-to-earn gaming remains a dynamic and rapidly evolving space. Its ability to onboard millions of users into the world of crypto gaming is undeniable. Whether it can translate that initial surge of interest into lasting engagement and sustainable economies will likely determine its place in the broader landscape of Web3 gaming.
As the industry continues to experiment and innovate, players and investors alike will be watching closely to see if tap-to-earn can avoid the pitfalls that befell its play-to-earn predecessors.
For those interested in exploring the world of Web3 gaming further, Metacade’s Tournaments offer a platform to compete and earn rewards. Join their Discord server to connect with other gamers and stay updated on the latest developments in the space.
