The Rise of Tap-to-Earn Games on Telegram: Market Insights and Business Models

Tap-to-Earn games like Hamster Kombat, with their simple gameplay, have found a new audience on Telegram by combining crypto with the platform’s large user base. The surge in popularity is driven by the growing interest in crypto, Telegram’s widespread use, and the appeal of gambling. It creates a fertile ground for Tap-to-Earn games to thrive.
At Dexola, we are closely following the development of mini apps on Telegram, particularly the rapid growth of Tap-to-Earn games. In this article, we deconstruct the phenomenon of Tap-to-Earn games, explore the economic models that drive them, and define the investment potential of this market.

What are Tap-to-Earn Games?

Tap-to-Earn games, also known as “idle”, “clicker”, or “incremental” games, where players earn in-game currency or items through repetitive actions, have found new popularity on mobile with crypto-clickers. 

These extremely simple Play-to-Earn games with basic rules, fun gameplay, and focus on continuous progression offer a chance to earn crypto with minimal effort — a desire that resonates with a huge audience of all ages.

Initially, idle games became popular with the rise of smartphones. They offer simple yet addictive gameplay that is perfect for short bursts of play.

Early examples captivated players:

• Cookie Clicker, a 2013 browser game, is a pioneer in incremental games. Its simple yet addictive gameplay, where players click for cookies and upgrades, gained immense popularity and influenced the genre’s growth.
  
• IGN cited it as one of the few games that played a big role in the development of incremental games, and The Kernel described it as “probably the most well-known” game in the genre.
  
• AdVenture Capitalist, a free-to-play 2014 game, simulates capitalist investing. Players start with a lemonade stand, reinvesting profits into increasingly profitable ventures.

Tap-to-Earn games have found a new home on Telegram, where crypto integration takes rewards and engagement to a new level. There are several factors which contribute to this resurgence.

Firstly, Telegram’s extensive user base and open platform offer a rich environment for these games to flourish. Secondly, the app’s bot functionality allows developers to easily create and distribute games, using its integrated wallet feature for crypto transfers. 

Here are some examples of popular Telegram Tap-to-Earn games metrics.

The success of games like Hamster Kombat, Notcoin, and Catizen demonstrates the genre’s appeal. 

Hamster Kombat boasts over 200 million players (2.6% of the global population!) and a community exceeding 86 million followers on socials. 

Notcoin attracted more people to Web3 than any other project within its first six months, and its NOT token reached a market cap of over $2.77 billion in just two weeks without any fundraising. 

Catizen reached 20 million players in two months, with over 1.25 million on-chain players.

The Economics of T2E Games

On Telegram, clicker games acquire users cheaply, around $0.001-$0.01 per user, including referrals, by paying for their primary resources — time and attention. They can then monetize this attention at a much higher rate, around $0.05-$1 per user. 

Developers earn through various methods in T2E games. They create in-game economies where players earn tokens, sell tokens directly to investors, offer in-app purchases for upgrades, display ads, and charge transaction fees for token exchanges.

Players earn by tapping or clicking, completing tasks, referring friends, and trading or staking their earned tokens. 

A portion of this revenue is then used to support the game’s token liquidity, preventing its immediate collapse after launch. This 10-20x arbitrage per user is temporary, but it works for now.

T2E games promise easy crypto earnings, but, in fact, the reality is less glamorous. While users can earn small amounts, these games are primarily profitable for developers and early investors. Most users earn little compared to their time investment, and initial hype often fades quickly.

Obviously, many Tap-to-Earn games will only last until the Token Generation Event (TGE), then quickly fade away, and the team will move on to the next project because, in fact, they are not serious DeFi projects with ambitions to fundamentally reshape the global financial system. Many of them operate like pyramid schemes, targeting gamblers. This isn’t the focus of Tier-1 VC funds.

However, for founders it’s already clear that this phenomenon has much more potential than typical Play-to-Earn or Move-to-Earn games.

Tap-to-Earn vs Traditional Currency Mining

T2E is a new model that rewards users with crypto for completing simple tasks like watching ads, playing games, or engaging with social media content. Unlike traditional crypto mining, which requires specialized hardware and technical expertise, tap-to-earn is designed to be accessible to anyone with a smartphone.

The key difference is how users earn crypto. Mining requires solving complex problems with specialized equipment, while Tap2Earn rewards users for completing simple tasks on their smartphones. This makes the last much more accessible to the average person and boosts mass adoption of the crypto.

How to Succeed in the Tap-to-Earn Games Market

If you’re interested in venturing into the Telegram tapping trend, follow these tips from Dexola to overcome challenges and gain superior profit.

• User Acquisition. Consistently and affordably attract users. Utilize social media, influencers, and paid ads to identify the most effective channels for your audience.
• Retention. Go beyond initial user acquisition. Keep users engaged long-term with captivating gameplay, social features, and a high-quality product that encourages repeat engagement.
• Economics. Set realistic expectations upfront. Be transparent about potential earnings and avoid overselling the game to prevent user disappointment and negative consequences.
• Segmentation and Monetization. Successful projects use extensive user data to create targeted campaigns and optimize monetization. Utilize advanced tools like AdSense with revenue sharing, decentralized RTB, and high-performance targeting to maximize revenue.

Follow these principles to build a thriving Telegram tapping project. Remember, success is about long-term user engagement and satisfaction, not just initial attraction.
Now, let’s explore some successful T2E projects.

Hamster Kombat (HMSTR)

Hamster Kombat is a popular Tap-to-Earn game on Telegram, where players tap to earn HMSTR tokens, upgrade their virtual hamster, and compete with others. Its user-friendly interface and addictive gameplay have propelled it to a massive player base.

Game Mechanics:

• Tapping. Players earn HMSTR tokens by tapping on the screen.
• Upgrades. HMSTR tokens can be used to upgrade the hamster’s abilities and unlock new features.
• Competition. Players can compete against each other in tournaments and leaderboards.

In addition to core tapping, Hamster Kombat offers social features like clans, chat, and real-world earnings through HMSTR token trading. NUT holders can participate in shaping the game’s future.

Hamster Kombat relies on in-app purchases and has volatile HMSTR tokens. Nevertheless, it demonstrates the potential of Play-to-Earn games to attract and engage a large player base.
The original plan was to allow withdrawals from Hamster in June 2024. However, earlier this month, representatives from TON and Hamster Kombat discussed the listing date and decided that the HMSTR token on the TON blockchain will be available later than initially planned.

NotCoin (NOT)

Notcoin is a unique Play-to-Earn game integrated into the TON ecosystem, offering a novel approach with no pre-sale. Its accessibility through Telegram and shareability attracted over 35 million players, both within and outside the crypto community.

Game Mechanics:

• Tapping. Initially, players earned in-game currency by tapping a virtual coin on the screen.
• Quests and tasks. Players can complete various quests and tasks to earn additional rewards and progress in the game.
• Boosts. Players can use boosts to increase their earnings or gain other advantages in the game.
• Referral program. Players can invite friends to the game and earn rewards based on their referrals’ activity.

Notcoin aims to onboard 300 million users to the Web3 world by providing educational resources and fostering a vibrant gaming community. The project is actively expanding its gaming offerings on the TON platform, creating an ecosystem for social and viral games.

TapSwap (TSC)

TapSwap is a clicker game on Telegram where users earn in-game currency called shares by tapping on the screen. The more taps, the more shares. These shares can later be exchanged for TAP tokens after the token launch.

Game mechanics:

• Taps. The main way to earn shares is by tapping the screen. The more taps, the more shares you get.
• Energy. The amount of energy is limited and regenerates over time. Energy is spent on each tap.
• Leagues. Players progress through leagues as they accumulate shares. Each league offers different rewards and opportunities.
• Boosters. Players can use boosters to increase their earnings or restore energy. Boosters can be bought with shares or obtained for free by completing tasks.
• Referrals. By inviting friends to the game, you can receive a percentage of their earnings.

TapSwap offers tasks beyond tapping to earn, including reaching league levels and inviting friends. Initially planned on Solana, the project has shifted focus. A temporary ban on Nigerian players due to a DDoS attack has been lifted.

How Dexola Can Assist You in Developing Tap-to-Earn Games

The Tap-to-Earn landscape is highly dynamic, with many projects vanishing as quickly as they emerge. While not every project will revolutionize the financial sector, there is significant potential for those equipped with a robust strategy and a commitment to user retention.

If you’re prepared to develop an idle game that stands out in the competitive market and deeply engages users, Dexola is ready to assist. With our extensive experience and resources, we can guide you through this promising new frontier.

Contact us to discuss how we can turn your Tap-to-Earn vision into reality.