Market
Why Telegram’s Tap-to-Earn Segment Is Winning Investors
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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.
Investors Eye Social Experiences as the Future of Tap-to-Earn Games
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.
Read more: Top 7 Telegram Tap-to-Earn Games to Play in 2024
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.
Market
3 Meme Coins to Watch For The Last Week of February 2025
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DOGEai, TST, and BROCCOLI are three meme coins drawing attention for the last week of February. DOGEai, launched on Solana, is up 110% in the past seven days, positioning itself as a leading AI meme coin.
TST remains one of the most popular meme coins on the BNB chain despite a recent correction. At the same time, BROCCOLI, inspired by Binance co-founder CZ’s dog, has also seen significant volatility.
DOGEai (DOGEAI)
DOGEai is an artificial intelligence coin launched on Solana. Its market cap is now $32 million, up 82% in the last seven days. This rise has positioned DOGEai as one of the most talked-about AI meme coins in recent days.
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DOGEai leverages multiple narratives, including Dogecoin’s popularity, the growing interest in DOGE (Department of Government Efficiency), and the broader AI cryptos trend. It defines itself as “an autonomous AI agent here to uncover waste and inefficiencies in government spending and policy decisions,” offering bill summaries and insights into government expenditures.
If the current uptrend continues, DOGEai could test the resistance at $0.048, with potential targets at $0.059 and $0.069. However, if a downtrend emerges, DOGEai has support at $0.030, and if that level is lost, it could drop to $0.018 or even $0.0092.
Test (TST)
TST has emerged as one of the most popular meme coins on the BNB chain, benefiting from the chain’s growing volume, which recently even surpassed Solana.
In the days following its launch, TST reached a market cap close to $500 million, then entered a strong correction phase. Its market cap has since dropped to $78 million.
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If the BNB narrative gains strength again, TST could benefit as one of its most popular meme coins and may test the resistance at $0.10. A breakout above this level could push TST to $0.20 or even $0.25 if buying pressure intensifies.
However, if TST fails to regain strong upward momentum, it could test the support at $0.0719 and potentially drop to its lowest levels since February 9.
CZ’S Dog (BROCCOLI)
BROCCOLI was launched a few weeks ago after Binance co-founder CZ revealed his dog’s name, sparking a flood of BROCCOLI tokens on the market.
The largest of these tokens quickly surged to a $249 million market cap in its early days but has since dropped to $52 million.
Like TST, BROCCOLI benefited from the recent rise of the BNB ecosystem but has since entered a strong correction phase. It is down 40% in the last seven days.
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If the downtrend continues, BROCCOLI could test support near $0.04, and a break below this level could push it to its lowest price since launch.
However, if the BNB ecosystem and meme coins regain traction, BROCCOLI could benefit, especially given the popularity of dog-related meme coins like Dogecoin and Shiba Inu. In this bullish scenario, BROCCOLI could rise to test the resistance at $0.113.
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.
Market
Ethereum Rollback Debate Intensifies After Bybit Hack
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The crypto community is divided over calls for an Ethereum blockchain rollback following a massive security breach at Bybit.
On February 21, the exchange lost nearly $1.5 billion in ETH to hackers, sparking discussions about whether Ethereum should intervene to recover the stolen funds.
What is a Blockchain Rollback?
A blockchain rollback, also known as a reorganization, involves reversing confirmed transactions to restore the network to an earlier state.
This process usually happens after a major security breach or exploit. Validators must reach a consensus to discard the affected blocks, effectively erasing the malicious transactions.
Despite its potential benefits, a rollback remains a controversial and rarely used measure due to its impact on a blockchain’s trust and decentralization.
Blockchains operate on the principle of immutability, meaning transactions are expected to be final once confirmed. So, rolling back transactions challenges this principle, raising concerns about the security and reliability of the network.
Crypto Leaders Clash Over Ethereum Rollback Proposal
BitMEX co-founder Arthur Hayes has been vocal in advocating for a rollback to solve the ByBit hack. He pointed to the 2016 DAO hack, where Ethereum underwent a hard fork to recover stolen funds, as precedent.
Hayes argued that since Ethereum previously compromised on immutability, another intervention should not be off the table.
“My own view as a mega ETH bag holder is ETH stopped being money in 2016 after the DAO hack hardfork. If the community wanted to do it again, I would support it because we already voted no on immutability in 2016,” Hayes said.
JAN3 CEO Samson Mow also supported the rollback, stating it could prevent North Korea from using the stolen funds to fund its nuclear weapons program.
However, not everyone agrees. Pseudonymous crypto trader Borovik strongly opposed the idea, arguing that a rollback would jeopardize Ethereum’s credibility and neutrality.
Bitcoin advocate Jimmy Song also dismissed the possibility, stating that the Bybit hack cannot be compared to the 2016 DAO exploit. Song emphasized that the DAO hack allowed for a 30-day intervention, whereas the Bybit attack is already finalized, making a rollback impractical.
“I know people are expecting the Ethereum Foundation to roll back the chain, but I suspect it’s already too much of a mess to do it cleanly,” Song added.
Meanwhile, Ethereum supporter Adriano Feria introduced an alternative perspective. He argued that Bybit could have avoided this situation by using a Layer 2 (L2) solution with conditional reversible transactions.
According to Feria, blockchain technology needs some form of reversibility to ensure real-world adoption.
“Whether through social recovery or another pre-determined, immutable, and transparent decision-making process, real-world mass adoption will not work without reversible transactions. Without this capability, transactional activity will inevitably gravitate toward TradFi systems that already provide it,” Feria stated.
This debate raises a fundamental question for Ethereum: should it prioritize immutability or intervene in extreme cases?
While some see a rollback as a necessary response to an unprecedented loss, others fear it could undermine the core principles of decentralization. Ethereum’s next steps will likely shape its long-term credibility and trust within the crypto space.
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.
Market
Berachain (BERA) Falls 15% After Recent Rally Surge
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Berachain (BERA) is down almost 15% in the last 24 hours, with its market cap now at $778 million, although its price remains up nearly 20% over the past seven days. This sharp pullback comes after a strong rally between February 18 and February 20, when BERA reached levels above $8.5.
BERA’s Relative Strength Index (RSI) has dropped from overbought levels, signaling a loss of bullish momentum, while its Directional Movement Index (DMI) shows growing bearish pressure. As BERA navigates this correction phase, it faces key support at $6.1, with potential resistance levels at $8.5, $9.1, and $10 if bullish momentum returns.
BERA RSI Is Dropping Steadily After Touching Overbought Levels
Berachain Relative Strength Index (RSI) is currently at 50.6, down sharply from 86.7 just two days ago when its price surged above $8.5. RSI is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100.
It is commonly used to identify overbought or oversold conditions, with values above 70 indicating overbought levels and below 30 suggesting oversold territory.
The steep decline in BERA’s RSI reflects a significant loss of bullish momentum after reaching overbought levels above 86, where a correction was likely.
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With RSI now at 50.6, BERA is in a neutral zone, suggesting that buying and selling pressures are relatively balanced.
This could indicate a period of consolidation as the market digests recent gains. If RSI continues to decline below 50, it could signal increasing bearish momentum. This could lead to a further price drop for BERA.
Conversely, if RSI stabilizes and begins to rise, it could suggest renewed buying interest and a potential recovery in Berachain price.
BERA DMI Chart Shows Buyers Are Losing Control
Berachain Directional Movement Index (DMI) chart shows its Average Directional Index (ADX) currently at 50.5, after peaking at 60.2 yesterday, up from just 13.3 five days ago. ADX is an indicator used to measure the strength of a trend, regardless of its direction, ranging from 0 to 100.
Values above 25 typically indicate a strong trend, while values below 20 suggest a weak or sideways market. The sharp rise in ADX reflects a significant increase in trend strength, confirming that BERA has been experiencing strong directional movement recently.
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Meanwhile, BERA’s +DI is at 24.4, down from 48.4 two days ago, indicating weakening bullish momentum. Meanwhile, -DI has risen to 15.1 from 4.9, suggesting growing bearish pressure.
This shift signals that the bullish trend that drove prices higher is losing steam, and selling interest is beginning to increase.
If -DI continues to rise above +DI, it could indicate a bearish crossover, signaling a potential reversal or deeper correction in BERA’s price. However, if +DI stabilizes and moves upward again, it could suggest a continuation of the uptrend, albeit with reduced momentum.
Will Berachain Fall Below $6 Soon?
Berachain surged 53% between February 18 and February 20, pushing its price above $8.5 after the coin struggled following its airdrop. However, after this sharp rally, BERA entered a correction phase and is currently down almost 15% in the last 24 hours.
This pullback suggests profit-taking and a shift in market sentiment as buyers hesitate to push prices higher. If the downtrend continues, BERA could soon test the support at $6.1, and a break below this level could lead to a further decline towards $5.48, reflecting increased selling pressure.
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On the other hand, if Berachain can regain its bullish momentum from a few days ago, it could rise above $8.5 again, potentially testing the next resistance levels at $9.1 or even $10.
To confirm this bullish scenario, Berachain would need to see renewed buying interest and strong upward momentum. If buyers can defend key support levels and push the price above resistance zones, it could indicate the continuation of the uptrend.
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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