Tap-to-Earn Goes Viral

The rapid rise of Notcoin has made the Tap-to-Earn mechanism a new “wealth creation” concept in the industry. With over 30 million players and a daily active user base of 5 million, these dazzling figures have propelled this project to be listed on multiple mainstream exchanges, including Binance, OKX, and Gate.io, in less than half a year. As of August 15, 2024, according to Coingecko data, Notcoin (NOT) ranks 68th in global cryptocurrency with a total market value of $1.162 billion.

So, what is Tap-to-Earn? Simply put, Tap-to-Earn means players can earn in-game rewards by simply tapping actions. In Notcoin, players accumulate tokens by tapping on the coin icon on the screen. Additionally, to accelerate token accumulation, players can participate in group collaborations, point leagues, energy management, and invitation rewards.

（Source: Notcoin）

This simple gameplay and rapid viral spread have quickly brought Notcoin massive exposure, attracting over 650,000 users within just a few weeks of launch. Moreover, with the support of the Ton Foundation, it has gradually become the first truly viral game within the Telegram ecosystem.

The X to Earn Narrative

The Tap-to-Earn mechanism is not entirely new to us. Essentially, it’s an extension of the broader X-to-Earn concept.

The X-to-Earn trend first gained traction with Play-to-Earn (P2E) games like Axie Infinity, which popularized “earning while playing.” Players earn tokens or NFTs in these games by completing tasks, battling opponents, or engaging in various in-game activities. Players own their game assets, which can be freely traded on the market, turning virtual rewards into real-world profits.

This redefinition of asset ownership laid the groundwork for blockchain gaming. At its peak, Axie Infinity generated revenues as high as $17.5 million, had over 1.5 million daily active users, and the project team earned more than $300 million monthly.

（Source: Axie Infinity）

Following that, Move-to-Earn (M2E) also became one of the most talked-about sectors in the industry, where users earn crypto assets by engaging in physical activities. A prime example is StepN, where users purchase sneaker NFTs and activate the app while exercising. The software tracks the data (such as GPS and speed) and rewards users with tokens or mystery boxes based on the results.

（Source: StepN）

Beyond this, the X-to-Earn model continues to expand into various other fields, such as Learn-to-Earn (earning tokens by acquiring new knowledge or skills), Watch-to-Earn (earning tokens by watching videos or live streams), Write-to-Earn (earning tokens by creating and sharing content), and Eat-to-Earn (earning tokens by documenting dietary habits).

Ultimately, almost every aspect of daily life can be integrated with blockchain technology, allowing users to earn digital assets through specific activities and then sell these assets for real-world value.

A Look at Tap-to-Earn Mini-Games

(Source: TGStat，2024.08.15)

After Notcoin went viral, numerous clones emerged in the industry. According to TGStat data, seven of the top 10 Telegram channels with the most subscribers globally are Tap-to-Earn games. Among them, Hamster Kombat leads with over 53 million subscribers, followed closely by TapSwap and Notcoin.

Hamster Kombat

This game has become even more popular than Notcoin. Since its launch, Hamster Kombat has attracted 239 million registered users in just three months, and its YouTube channel reached 10 million subscribers within seven days. Even Telegram CEO Pavel Durov called it the latest internet phenomenon.

(Source: Hamster Kombat)

Hamster Kombat is built around “Everyone is a CEO.” Players take on the role of a cryptocurrency exchange CEO and collect points by tapping on hamsters on the screen. Players can also boost their points by upgrading cards, completing tasks, collaborating with the community, and inviting friends.

Hamster Kombat has over 300 million players, and the team has revealed details about a highly anticipated cryptocurrency airdrop. Public records indicate that 60% of the HMSTR token airdrop will be reserved for players, with distribution based on accumulated points, game duration, community engagement, overall social activity, and the quality of referred players.

TapSwap

In TapSwap, players earn TAPS coins by tapping icons on the screen. The game also offers bonuses, tasks, and a referral system to incentivize players.

TapSwap launched on February 15 this year, and by early July 2024, it had already gained over 60 million players. As a Tap-to-Earn game endorsed by Pavel Durov, TapSwap’s airdrop plan has garnered considerable attention. Recently, the project team mentioned that they need to refine the tokenomics and release strategy. The tokens will be released in the third quarter if all goes well.

DOGS

In mid-July, a black and white dog named DOGS started trending on Twitter. Participating in DOGS is simple: users join the relevant channel, and a bot rates their accounts based on registration time and activity on TG, distributing points accordingly.

(Source: DOGS)

On August 15, the DOGS team announced their tokenomics, with a total supply of 550 billion. Of this, 81.5% is allocated to the community. Recent data shows that 53 million users have registered for the game, and 42.2 million are eligible for the airdrop.

YesCoin

YesCoin introduces a “Swipe-to-Earn” concept, where players earn coins by swiping the screen. Players can also form teams and invite friends to boost their rewards.

(Source: YesCoin)

YesCoin’s TG channel has surpassed 10 million users, and its Twitter following has reached 3.6 million. Alongside its rapidly growing community, YesCoin has received multiple interactions from TON and Telegram officials.

Pixelverse

Pixelverse is a cyberpunk-themed gaming ecosystem centered around the Telegram-based app PixelTap.

(Source: Pixelverse)

As a player-versus-player (PvP) game, PixelTap adds a combat mode to the tap-to-earn mechanics. To earn more coins, players can upgrade robots, complete tasks, and compete for resources.

According to the Pixelverse team, the ecosystem attracted over 15 million registered users in its first month of operation. Pixelverse also completed two funding rounds, raising $7.5 million, with notable investors including Delphi Ventures and Merit Circle.

Understanding the Tap-to-Earn Model

The success of leading Tap-to-Earn projects is largely due to the strong backing of the TON Foundation and the Telegram ecosystem. With its vast user base of 900 million monthly active users, Telegram provides an ideal platform for mini-games to quickly acquire users at a low cost during their initial launch phase.

Tap-to-earn games are typically characterized by simple, easy-to-understand gameplay with minimal entry barriers. Players can participate with just a small investment of time. Additionally, these games often incorporate social sharing and referral reward mechanisms, which enable rapid viral growth. This approach not only boosts exposure on social media platforms but also fosters interaction and engagement among players, strengthening the social aspects of the game.

On the blockchain front, Tap-to-Earn is a natural evolution of the Play-to-Earn model, where players earn in-game assets by investing time and effort. Most project teams focus on fair token distribution and emphasize a community-driven approach, enhancing player involvement through transparency.

However, short-term popularity doesn’t necessarily translate into long-term success. Notcoin’s anonymous founder, Sasha, candidly noted in an interview, “I don’t think Notcoin will last forever; it lacks sustainability. Only games with a sustainable model can survive in the long run.”

Tap-to-Earn games, such as Notcoin, suffer from low playability. Both the gameplay and the visuals are often crude, with many hastily produced “re-skinned” games showing little to no design differences and a significant lack of innovation. This leads to low user retention, weak engagement, and sluggish long-term growth.

Beyond gameplay, teams also face the challenge of building and maintaining a sustainable economic model. Players often flock to these games with the expectation of earning rewards, but once the airdrop ends, they may quickly leave. If the economic model is not robust, the project could face serious risks when user growth stagnates or external funding dries up, potentially leading to a “death spiral.”

Furthermore, the widespread use of bots poses a significant challenge. While fake accounts may create a misleading impression of growth, they ultimately harm genuine users by diluting their rightful share of airdrops and other rewards.

Conclusion

From Play-to-Earn and Move-to-Earn to the current Tap-to-Earn, these X-to-Earn narratives have continuously set new trends. The introduction of innovative models and gameplay expands the scope of blockchain games, attracting a diverse range of users and fostering the integration of Web2 and Web3.

However, as the industry experiences explosive growth, it’s important to address the challenges the “tap-to-earn” model exposes. Development teams must focus on enhancing the core aspects of the game—gameplay, visuals, economic models, and content—to meet users’ varied needs. Additionally, strengthening data security and privacy and building a more diverse ecosystem can further boost player loyalty and support the game’s sustainable development.