Why Telegram's Tap-to-Earn Games Could Lead Web3 Future

Investors Bet Big on Tap-to-Earn Games

Investors are turning their focus to Telegram’s tap-to-earn games, which offer a unique opportunity thanks to the platform’s large user base and efficient infrastructure. These games, including Hamster Kombat and Catizen, are built on the TON (The Open Network) blockchain and have gained significant traction, catching the attention of venture capitalists. The ability to integrate crypto into Telegram seamlessly and at low costs makes these games a promising area for Web3’s future.

Telegram’s Edge in Web3 Gaming

One of the key reasons investors are attracted to Telegram’s gaming ecosystem is the platform’s vast user base of over 950 million active users. This reach significantly lowers acquisition costs for developers, a major advantage for investors looking to maximize returns.

Additionally, Telegram’s built-in crypto infrastructure allows for smooth transactions, which is a crucial aspect of the user experience. This integration between gameplay and cryptocurrency offers instant monetization, an essential feature for both developers and investors. According to Junbo Yang from Hashkey Capital, this smooth transition from game to crypto without leaving the app gives Telegram a competitive advantage over other platforms in the Web3 space.

The Success of Early Tap-to-Earn Games

Games like Hamster Kombat and Catizen have proven to be early successes. Hamster Kombat, for example, has drawn over 300 million users across 190 countries. Its upcoming HMSTR airdrop is expected to be one of the biggest in the crypto world. Similarly, Catizen has built a loyal player base and continues to optimize its monetization strategy, showing that tap-to-earn games can sustain user interest and growth. Another game, Notcoin, attracted 40 million users and executed one of the year's largest airdrops, establishing itself as a significant player in the TON ecosystem.

Long-Term Potential for Tap-to-Earn Games

Investors believe these early successes are just the beginning, with the potential for the tap-to-earn model to scale and evolve. They view these games not only as a way to attract users but also as a method to retain them by creating more immersive, social experiences beyond simple rewards. Yat Siu, co-founder of Animoca Brands, notes that Telegram’s gaming ecosystem could bring the next wave of Web3 users, helping the platform grow further.

The focus is on user acquisition, scalability, and retention. Investors like Hashkey Capital believe games like Catizen are setting the stage for long-term user engagement, prioritizing monetization and user retention strategies. This could pave the way for other developers to follow, scaling their games and generating sustainable growth.

Overcoming Challenges in the Tap-to-Earn Space

While the tap-to-earn model has been successful in attracting users, keeping them engaged beyond initial rewards remains a challenge. Critics have pointed out the problem of mercenary users—those who play games solely to earn tokens. However, investors see this as a temporary issue. As game mechanics evolve, they believe developers will find new ways to keep users engaged, extending the life of the tap-to-earn model.

The TON blockchain has also faced its own hurdles, such as a recent outage that temporarily halted block production. This raised concerns about the network’s ability to handle future growth. However, Yat Siu remains confident in TON’s resilience, stating that the network is still in its early stages and these challenges are part of its growing process.

Conclusion

Despite the challenges, investors remain optimistic about the future of tap-to-earn games on Telegram. They believe these games are just the beginning of a larger shift in Web3 gaming, with the potential to attract millions of new users. The coming years will reveal whether this model will continue to grow, but for now, investors are fully committed to its success.