Increased Interest in Blockchain Gaming

Increased interest in blockchain gaming, primarily led by the popularity of Telegram mini-games like Notcoin, Hamster Kombat, and Yescoin, has been one of the year's most compelling stories in crypto as the tap-to-earn titles appear to have attracted potentially millions of new users to Web3.

Perhaps not since the rise and fall of Axie Infinity has crypto gaming garnered so much attention. With millions of people signing up to play these crypto games, a wave of companies have decided to build and deploy simple video games on Telegram in hopes of tapping into the messaging app’s nearly 1 billion users. This trend has attracted seasoned Web3 game developers, complete newcomers, and even Binance, the world’s largest cryptocurrency exchange by trading volume.

Telegram’s Even Playing Field

Notcoin is credited with pioneering the Telegram clicker games model. In a recent interview, Notcoin’s founder, Sasha Plotvinov, noted that a primary reason for the replication of Notcoin by other companies is the potential for low-cost user acquisition.

Plotvinov estimates that acquiring users in crypto could cost companies between $10 to $15 per user. In contrast, utilizing a Telegram mini-game can achieve acquisition for less than $1. This economic advantage has evened the playing field.

Plotvinov stated, “There are two types of teams in the Telegram community: those from modest backgrounds who build something and achieve millions of users; that kind of success can happen in just one month.”

Telegram-based games primarily utilize The Open Network (TON) blockchain, which has had a historical association with the messaging app, supported by Telegram’s founder Pavel Durov. Since launching its native crypto wallet, TON Space, in September 2023, the ecosystem has expanded, activating nearly 23 million new wallets over the past year.

Binance Joins the Fray

Plotvinov observed that established companies, feeling envious of the user numbers and acquisition costs, are entering this space. Binance, for instance, launched a Telegram-based game called Moonbix at the end of last month.

While developers are eager to scale quickly, games like Hamster Kombat have been effective in attracting users with the promise of token rewards. However, Notcoin’s NOT token has significantly outperformed Hamster Kombat’s HMSTR token since their respective launch events.

Plotvinov has expressed skepticism about the sustainability of the tap-to-earn model, noting that the motivation to earn money rather than enjoy the game is problematic. Notcoin is attempting to diversify its offerings, including the recent release of a new game called "Lost Dogs".

Innovation Lab

Many Web3 gaming projects struggle to attract users, complicating testing and development. However, Telegram games’ rapid community-building capabilities provide valuable data for developers, making their work easier according to Helika, which has launched a $50 million Telegram gaming accelerator.

Helika, supported by Notcoin, reported over 250 applicants for the accelerator. Helika co-founder Anton Umnov stated, “There’s definite appeal to why people are building on Telegram. A large part of the audience is willing to play and try these games.” Many developers view Telegram as an “innovation lab.”