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Why Telegram’s Tap-to-Earn Segment Is Winning Investors

Published

1 week ago

September 9, 2024

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The rapid rise of tap-to-earn games on Telegram, powered by The Open Network (TON) blockchain, has attracted significant attention — and funding — from venture capitalists. Investors are making substantial bets on Telegram’s tap-to-earn games like Notcoin, Hamster Kombat, and Catizen, seeing them as the future of Web3 gaming.

But what exactly is driving these investment decisions, and how do investors envision the future of tap-to-earn? BeInCrypto recently interviewed Animoca Brands, one of the biggest TON validators, and Hashkey Capital, which has made significant investments and formed partnerships with Catizen.

Undeniably, one of the key reasons venture capitalists are drawn to Telegram’s tap-to-earn ecosystem is its vast and engaged user base. With 950 million active users as of July 2024, the platform offers an unparalleled audience for developers looking to launch and scale games. This kind of organic reach dramatically reduces user acquisition costs, which is a major selling point for investors.

Furthermore, its crypto-native infrastructure sets Telegram apart from other platforms in the Web3 gaming space. The integration of TON blockchain allows for seamless transactions, reducing friction between the gaming experience and the user’s wallet. This ease of use is a significant draw for both developers and investors, as it allows instant monetization without the hurdles typically associated with blockchain adoption.

“Telegram is one of the few platforms where Web3 mechanics are baked into the experience. The ability to move from gameplay to crypto transactions without leaving the app is a huge competitive edge,” Junbo Yang, Investment Manager at Hashkey Capital, explains.

For investors, this integrated experience makes Telegram a prime candidate for further investment. The platform’s low transaction fees, scalability, and growing list of mini-apps ensure that developers can continue to innovate and retain users without the technical barriers that often plague Web3 adoption.

As TON ecosystem and tap-to-earn games grow, investors remain optimistic about the future of this segment. For instance, Hamster Kombat alone has attracted over 300 million users across 190 countries, with its upcoming HMSTR airdrop poised to be one of the largest in the crypto space.

Read more: What Is Hamster Kombat?

Meanwhile, Catizen has successfully built a loyal user base while optimizing its monetization strategy. Likewise, Notcoin attracted over 40 million global users and executed one of the year’s largest airdrops, solidifying its position as a key player in TON ecosystem.

Both Hashkey Capital and Animoca Brands see the success of these games as just the beginning. They believe as developers improve game mechanics, they will also discover new ways to retain users, moving beyond simple rewards to social and immersive experiences.

Why Telegram Could Drive the Next Web3 Boom?

Furthermore, the investors view these games as a proof of concept, demonstrating the scalability of the tap-to-earn model and its ability to retain users beyond initial incentives. This success reveals significant potential for growth and expansion within the tap-to-earn sphere.

In a recent exclusive interview with BeInCrypto, Yat Siu, the co-founder and executive chairman of Animoca Brands, strongly advocated integrating blockchain gaming into Telegram. He sees that the built-in audience allows games to scale quickly without costly marketing campaigns—a crucial factor for venture capitalists eyeing high returns.

“The next 100 to 200 million users in Web3 will come from Telegram and its gaming ecosystem,” Siu remarks.

Investors are primarily focused on three factors: user acquisition, scalability, and retention. However, they are also particularly excited about the potential for long-term monetization. Catizen, for example, stands out for its ability to retain users and optimize their lifetime value (LTV), showcasing sustainable growth and a profitable tap-to-earn model.

Junbo Yang highlights how Catizen and similar games set the stage for future development by prioritizing monetization and long-term user engagement.

“The early success of Catizen in monetizing its user base offers a blueprint for how other developers can scale their games,” Yang notes.

These investors’ perspectives align with the game teams’ long-term visions. In an email to BeInCrypto, the Hamster Kombat team revealed their plan to evolve into a multi-game platform.

“After the first airdrop, we will launch the second season with a massive expansion, allowing players to choose from multiple games to play. This begins the transformation of Hamster Kombat from a game into a gaming platform, similar to how Valve moved on from launching cult-status games to Steam, the largest game marketplace for PCs,” they elaborated.

Turning Setbacks into Growth: Why Investors Remain Optimistic Despite TON’s Hiccups

While the tap-to-earn model has proven its ability to attract users, the key challenge is keeping them engaged beyond initial airdrops and rewards. Some critics have raised concerns about mercenary users—those who join games solely to earn tokens—but investors see this as a short-term challenge.

However, investors believe that as developers increasingly adopt the tap-to-earn model, they will also find ways to extend user lifecycles, enhancing its sustainability. Yat Siu believes that the tap-to-earn model, while currently reward-driven, is laying the foundation for a much larger gaming ecosystem.

“Tap-to-earn is just the beginning. Once users enter the ecosystem, the goal is to build community and social experiences that keep them engaged for reasons beyond just token rewards,” Siu argues.

In addition to the sustainability concerns, the Telegram ecosystem has faced recent challenges. For instance, earlier in August, BeInCrypto reported that TON blockchain experienced an outage, temporarily halting block production for several hours. This incident raised concerns about the network’s ability to handle future surges in activity, especially with the increasing number of users participating in tap-to-earn games.

Addressing the issue, Yat Siu acknowledged the outage but remained confident in TON’s resilience. Siu emphasized that TON is still in its early stages and believes that such challenges are part of the network’s growth process. He sees TON’s potential to become even larger than Telegram itself in the future, driving the platform’s growth.

“TON itself should remain as a censorship-resistant decentralized platform like other chains, but the projects and dApps themselves can implement measures to ensure stability,” he said.

Regardless of these challenges, venture capitalists remain confident in the potential of tap-to-earn. The coming years will reveal whether this model will secure its place as a lasting feature in Web3 gaming, but for now, investors are fully committed.

Disclaimer

Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:Investors Segment TaptoEarn Telegrams Winning

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How Fed Rate Cut Could Help LINK

Published

8 mins ago

September 19, 2024

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Chainlink’s (LINK) price has risen above $11 following the recent Fed rate cut. This increase has ignited fresh speculation about the coin’s short-term outlook.

In this analysis, BeInCrypto examines the factors contributing to the hike, the potential implications of the rate cut, and what traders can expect from LINK.

Chainlink Key Drivers Want More

According to Santiment, alongside the recent rate cut, Chainlink’s 90-day Mean Coin Age (MCA) has risen. The MCA reflects the average age of tokens in circulation, with a low MCA suggesting that previously inactive tokens are being moved from cold wallets, potentially leading to a sell-off and putting downward pressure on the price.

Conversely, a rising MCA indicates that investors are holding onto their tokens and engaging less in trading activity, often signaling a long-term hold strategy. In Chainlink’s case, the spike in the MCA suggests that many investors are choosing to keep their LINK tokens dormant or moving them into self-custody, reducing selling pressure.

Chainlink 90-Day Mean Coin Age. Source: Santiment

Beyond the rising coin age, the 4-hour LINK/USD chart reveals a surge in the Cumulative Volume Delta (CVD), a key indicator of market sentiment. Each bar on the CVD shows whether the market is dominated by buying or selling activity. Red bars signal selling pressure, which could drive the price down.

In LINK’s case, the chart shows five consecutive green bars, indicating sustained buying pressure. This suggests that the market’s demand for LINK is growing, potentially supporting the continuation of its uptrend.

Chainlink Cumulative Volume Delta. Source: TradingView

LINK Price Prediction: Further Gains

The daily chart shows that Chainlink is holding strong at the $10.02 support level, which played a key role in its recent breakout above the $10.83 resistance. Currently, LINK is trading at $11.30, with no significant resistance in sight to halt the uptrend.

Using Fibonacci retracement levels to assess potential price targets, LINK’s next likely move could take it to $11.86, corresponding to the 38.2% Fibonacci level. If it breaks past this point, the next target could be around $12.98, a level that appears within reach given the current momentum.

Chainlink Daily Analysis. Source: TradingView

However, the cryptocurrency could experience a pullback if it fails to surpass $11.86. If that happens, LINK might drop to $9.25.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

Will Notcoin Price Break This Key Resistance?

Published

1 hour ago

September 19, 2024

admin

Like other altcoins in the market, Notcoin (NOT) has seen a price increase in the last 24 hours. Within the period mentioned, NOT has jumped by 8% while its volume has surged 85%, indicating growing interest in the Telegram coin.

With market volatility at a high level, Notcoin faces a crucial momentum that could determine its short-term movement. If NOT fails to break through this key resistance, it risks facing a significant correction that may send its price tumbling.

Notcoin Encounters Challenges

Notcoin is currently trading at $0.0078, still 73% below its all-time high. Despite recent gains in price and volume, which suggest a potential rally, the 4-hour analysis indicates the token could face challenges as it targets $0.011.

The 4-hour chart shows that Notcoin is working its way toward $0.0080, but this level has previously acted as resistance, where the coin faced rejection. If Notcoin fails to break above this price level, it could see a 10% correction. In this case, its value might drop to $0.0072.

Read more: 5 Top Notcoin Wallets in 2024

Notcoin 4-Hour Analysis. Source: TradingView

An evaluation of Notcoin on the daily timeframe shows its Relative Strength Index (RSI) remains below the neutral 50.00 mark. The RSI is a momentum indicator that tracks the speed and size of price changes.

If the RSI moves above the midpoint, it signals bullish momentum and a potential price increase. Conversely, a decline in the RSI suggests weakening momentum.

For Notcoin, the RSI is rising but still below the signal line, indicating the uptrend is uncertain. The token’s upward movement will likely remain shaky unless bulls apply more pressure to push the price higher.

Notcoin Relative Strength Index. Source: TradingView

NOT Price Prediction: Rally Could Stop

Furthermore, the Fibonacci retracement indicator provides insights into NOT’s next movement. From a short-term perspective, bulls might try to break above $0.0085. However, around the same region, Notcoin began a decline that pulled it down to $0.0072 on September 6.

As such, that region is a supply zone that requires notable buying pressure to surpass. Currently, it does not appear that Notcoin has the notable capital flow to keep the upswing going.

Notcoin Daily Price Analysis. — Notcoin Daily Analysis. Source: TradingView

In a highly bearish scenario, Notcoin’s price could drop to $0.0072 and possibly as low as $0.0069. On the other hand, if the token manages to break above the $0.0080 and $0.0085 resistance levels, it could potentially surge to $0.011.

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Why 2024 Altcoin Season Could Fuel a Rally in These 6 Tokens

Published

2 hours ago

September 19, 2024

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Crypto investors and analysts support that the 2024 altcoin season may have just started, drawing signals from multiple fundamentals, including Bitcoin’s (BTC) sustained foray above $63,000.

The optimism comes after the Federal Open Market Committee (FOMC) decided a 50 basis points interest rate cut in September, suggesting the US economy is in a good place.

Crypto Banter Founder Highlights Tokens Primed for Altcoins

Crypto Banter, a popular YouTube channel with over 1.08 million subscribers, says the 2024 altcoin season is beginning. Its founder, Ran Neuner, cites the Federal Reserve’s (Fed) interest cut on Wednesday, increasing global liquidity and the all-time high seen in the money market funds. With this, he lists six tokens that are best positioned to rally if the altcoin season takes off.

SUI

The analyst starts by highlighting Sui (SUI) as a standout token, noting its rising prominence in the market, even posing a threat to Solana (SOL). SUI has been making headlines with major partnerships, including Circle’s USDC integration. Grayscale also recently launched a Sui Trust, which has driven a significant increase in both price and trading volume.

Ran Neuner believes these strong fundamentals position SUI for success in the short term, especially if an altcoin season unfolds.

FTM

The analyst also highlights Fantom (FTM) as a promising altcoin, noting its strong price performance. FTM has gained attention after recent internal developments, including the rebrand to Sonic Labs in August.

The rebrand has sparked renewed investor interest, positioning Fantom for further growth. Sonic Labs is building on this momentum with the launch of Sonic Gateway, a decentralized bridge that enables secure ERC-20 token transfers between Ethereum and Sonic.

This development has provided a boost for FTM, which has risen by 10% since the Thursday session began, trading at $0.33, according to BeInCrypto data.

IMX

ImmutableX (IMX) is also on Crypto Banter’s list of altcoins poised to rally on a possible alt season. The gaming token has broken above a falling wedge pattern, effectively confirming a reversal. Based on this breakout, analysts expect a bullish wave.

IMX Price Performance — IMX/USDT 2-day chart, Source: TradingView

AERO

The portfolio rebalancing also considers Aerodrome (AERO), as the central trading and liquidity marketplace continues to thrive on Base L2. The underlying fundamental for AERO is Aerodrome’s MetaDEX model, which combines the best aspects of previous decentralized exchange market leaders.

“When we assess Aerodrome’s implied outcomes through a model, it’s evident that token inflation, in itself, is not inherently bad. Instead, emissions are just one input into an economic model—a cost that can be managed and overcome,” a DeFi researcher echoed.

SOL

If the assumption proves accurate, Solana (SOL) may be gearing up for a strong rally, given its history of delivering impressive gains during altcoin market surges. Solana has often outperformed when broader altcoin momentum picks up, making it a key player to watch.

Currently, SOL is trading at $141.53, marking a 10% increase in the last 24 hours, according to BeInCrypto data.

OM

MANTRA (OM) earns a spot on the analyst’s list due to the upcoming launch of its mainnet in October. This event is expected to be a major milestone for the project, as it will bring real-world assets (RWA) on-chain. The mainnet launch will be a crucial step in integrating traditional finance (TradFi) into the blockchain ecosystem, creating new opportunities for MANTRA’s growth.

Ran Neuner also highlighted several other tokens that could see strong rallies, including Arweave (ARV), THORChain (RUNE), Render (RNDR), Crown by Third Time Games (CROWN), and SuperVerse (SUPER). These tokens have posted steady, conservative gains despite recent market uncertainty, positioning them for larger increases if an altcoin season takes off.

However, Neuner advises investors to keep an eye on the Bank of Japan’s (BOJ) CPI and interest rate decision on Friday. He warns that if the BOJ raises rates, it could disrupt the current rally, potentially leading to a market reversal. On the other hand, if the BOJ cuts interest rates, it could reinforce the ongoing upward momentum.

“Don’t get overconfident. We need good CPI out of Japan tomorrow and for BOJ not to raise rates on Friday. September still has some potential liquidity drains so don’t lever up to the gills, just 8 more days until it is really up only,” GamesMasterFlex wrote.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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