Analysis: Is Tap-To-Earn Really Just Play-To-Earn 2.0?

For the past months, starting from Notcoin to Hamster Kombat to Catizen, the clicker games on the Telegram Mini-Apps ecosystem are so popular because of the airdrops associated with them. 

• The Big Question: Is tap-to-earn (2024) just play-to-earn 2.0 (2021)? 

What’s the significance? This article presents the different arguments and answers of key crypto leaders about the matter. 

The Big Picture: Recently, $TON reached its all-time high at ₱484.49 on June 15, 2024, and the network surpassed 547,000 daily active wallets. 

• The total value locked (TVL) for The Open Network (TON) also reached $609.78 million in mid-June 2024, more than double the $300 million record in early June. 
• The reason for this surge? Tap-to-Earn Games.
  • In May, Notcoin distributed $NOT to their players who mined in-game points. Players received 1 $NOT for every 1,000 points. 
  • In July, a possible token listing of $HMSTR, the native token of Hamster Kombat, is expected. The game has an ongoing airdrop campaign. 
  • Earlier this month, TapSwap moved the launch of $TAPS to July 1, while Yescoin confirmed that they are planning to launch  $YES on top of The Open Network (TON), another hint for possible airdrop campaigns. 
  • More games are speculated to host an airdrop soon like W-Coin and Pixelverse. 

Are Telegram-based games the play-to-earn (P2E) games of this era?

In a Facebook post, Luis Buenaventura answered some questions about web3 gaming. He is the current head of GCrypto, GCash’s in-app crypto trading feature, and the former country manager of YGG Pilipinas, the local entity of web3-gaming-focused gaming guild giant Yield Guild Games. 

• On current hype:  According to Buenaventura, the vibes that he is feeling right now is that it is similar to the 2021 P2E hype.
• On 2024 web3 gaming: “In general I don’t think the games industry is going to be a big part of the 2024 narrative, at least not like how it was back in 2021.”
• On 2024 airdrops: As per the GCrypto Head, airdrops in today’s era are no longer “very profitable” for an average airdrop farmer. It is because the tasks are harder and more specific. 
• The intersection of 2024 airdrops and 2021 P2E: The same target market, which are people who have no money and lots of time available, he emphasized. 
• On airdrop from tap-to-earn games: “I guess these types of airdrops do well in younger chains because there’s a lot of fresh money that needs to be spent on marketing and promotions. By this logic, you can hunt around on any young chain to look for copycat airdrops … Just be cautious, most of the time the copycats perform much, much worse.”
• On congestion on TON due to airdrops: “I think this was inevitable. Airdrops aren’t ‘free money’ the way that people like to describe them. Airdrops are actually borrowing from the future promise of value of a token, because the only way you can turn your airdropped tokens into money is if someone else buys it from you. Having more and more airdrops has flooded the market with tokens that no one cares about.”

Analysis

• The hype attracted by the games within the Telegram Mini-Apps Ecosystem seems to be because of its accessibility. 
• It is because to be able to play these games, there are no other apps needed to download, just Telegram—no KYC, no required connecting wallet. 
• The tap-to-earn mechanics also seem to be easy ones. Imagine, you just need to tap your screen and be patient, and you can have “free money.” 
• Referring new users is also easier on Telegram-based games because the new players do not have to download other apps, they just need to click the referral code of the referrer and they can start to play.
• Need proof? Go to this BitPinas post and witness how many players are trying to attract new users using their referral code. 
• Lastly, tap-to-earn games are free. No NFTs needed to play the game. 

But are Telegram-based games the new play-to-earn game?

According to Zaky M, BD for Asia at Blum, tap-to-earn has proven to be an effective strategy for onboarding new users into Telegram Mini Apps. 

• Its ease of access allows users to compete for benefits during the farming period as early adopters.
• The more important challenge for projects is to ensure they are building a genuinely valuable product with a clear roadmap for post-farming sustainability. Without this, significant user churn can occur once the farming period ends.

Key Quote: 

“At Blum, we are building a decentralized exchange within Telegram Mini App (and beyond), specializing in trading memecoins and new tokens. Our platform features a unique memepad for launching new meme-based projects, incorporating gamified mechanics to enhance user engagement and retention.”

Zaky M, BD for Asia, Blum

The bottom line: Both Buenaventura and Zaky M agree that the current hype on Telegram-based games has the same vibes as the 2021 hype on play-to-earn games. These games are free, easy to access, and attractive. 

This article is published on BitPinas: Analysis: Is Tap-To-Earn Really Just Play-To-Earn 2.0?

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