tl;dr
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. With 950 million active users, Telegram offers an engaged audience for developers, reducing user acquisition costs. The integration...
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. With 950 million active users, Telegram offers an engaged audience for developers, reducing user acquisition costs. The integration of TON blockchain allows for seamless transactions, making Telegram a prime candidate for investment. Investors see these games as proof of concept for the scalability of the tap-to-earn model and its potential for long-term monetization. Despite challenges, venture capitalists remain optimistic about the potential of tap-to-earn games, believing in their lasting impact on Web3 gaming. 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, 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. 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 reveals significant potential for growth and expansion within the tap-to-earn sphere. The investors are primarily focused on user acquisition, scalability, retention, and 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. 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. Yat Siu believes that the tap-to-earn model, while currently reward-driven, is laying the foundation for a much larger gaming ecosystem. 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.