Web3 click games are the latest phenomenon to emerge in the world of cryptocurrencies, but their potential
Web3 click games are the latest phenomenon to emerge in the world of cryptocurrencies, but their purported ability to generate quick returns has called their sustainability into question.
Also known as crypto idle games, these simple and addictive games have seen massive financial growth in the last month alone, attracting tens of millions of users while creating buzz around the world.
Notcoin, the P2E game integrated into the messaging app Telegram, has been at the forefront of this revolution, with more than 40 million players. Additionally, since May 26, the value of the game’s native Notcoin (NOT) token has seen a staggering 240% increase, with the market cap reaching over $2.75 billion at its peak.
In the first three weeks of May, the game added five million new players, increasing its user base by 14%. This rapid expansion has been attributed to hype surrounding the game’s quest software, which allows players to passively earn tokens.
Notcoin is not the only game attracting public attention.
Hamster Kombat is another Telegram-based clicker game that has made a number of great achievements in a short period of time. In just 77 days since its launch, the project has amassed over 142 million users, surpassing the initial growth rate of popular social media platforms such as WhatsApp, Instagram and TikTok. The game’s YouTube channel has also attracted over 21 million subscribers, highlighting its widespread appeal.
From the outside, it appears that these addresses are actively exploiting the growing desire for accessible and potentially profitable cryptocurrency opportunities.
Additionally, by integrating with popular messaging platforms like Telegram, they have lowered the barrier of entry for millions of users who otherwise might have felt intimidated by the complexities of the cryptocurrency industry.
The allure of digital hamsters and cryptocurrencies
At their core, games like Catizen, Yescoin, Tapswap, Notcoin, and Hamster Kombat (among many others) offer a simple premise: tap your screen to earn cryptocurrency.
The games have struck a chord with users by combining the addictive mechanics of idle play with the allure of cryptocurrency winnings.
According to Inal Kardan, Head of Gaming at the TON Foundation, the accumulation of 35 million users in a short five-month period showed him and his team that “it is possible to create unique gaming opportunities by using social network messaging” while integrating the same users. . to the crypto industry simultaneously.
Chris Chu, co-founder and CEO of Sonic – a game series based on Solana – agrees, telling Cointelegraph:
“Clicking games offer a low barrier of entry for retail users because most transactions take place off-chain, leveraging existing traffic pools like Telegram, where they were able to attract their initial users at low costs. very low and with minimal friction.”
Yat Siu, co-founder of blockchain gaming venture capital firm Animoca Brands, sees merit in this customer accumulation approach, saying: “The Notcoin approach has much better value for end users and is more aligned with growth incentives and the contradictory nature of Web2. » Advertising business models.
Latest: TXSE “Upstart” Exchange Could Become a Crypto-Friendly Competitor
On the other hand, critics have expressed concerns about the long-term viability of these games. For example, Can Becak, co-founder and CEO of Web3 gaming studio Eldarune, told Cointelegraph:
“The mechanics of these clicker games are similar to a Ponzi scheme, with early entrants benefiting the most.”
“The focus on reaching a billion players through projects like Hamster Combat also raises questions about the true value proposition and the potential for market saturation. This seems more like a mass marketing ploy than real cryptocurrency adoption. “I have concerns about sustainability,” he said.
The sustainability of clicker games is questioned
As the hype around these gaming titles grows, big questions arise about their durability and safety. Its rapid growth and high valuations have led some experts to draw parallels with previous cryptocurrency bubbles.
“These ‘games’ are highly configurable using simple mechanics to develop robots that ‘click’ or perform the necessary actions to achieve the desired farming,” said Luke Paglia, chief operating officer of the Web3 My game. Pet Hooligan, at Cointelegraph. Earn.”
“There is also a significant risk that the economy will quickly become hyperinflated, leaving many users holding thousands of worthless cryptocurrencies. »
Additionally, he noted that while the simplicity of these games was undoubtedly a major factor in improving their accessibility, it could also be their weakness.
Without deeper game mechanics or real utility for their tokens, interest can quickly wane, leading to a collapse in token value.
“The long-term health of P2E gaming depends on well-designed and balanced token economies,” Yaniv Baruch, COO of Polygon-based Web3 gaming platform Playnance, told Cointelegraph. Unbalanced play or excessive token inflation can lead to collapse, highlighting the need for sustainable models.
Zhu agreed that there were long-term issues that needed to be resolved: “If there is still only a listening mechanism and no clear mechanism for burning tokens, it will be a performance issue at long term. “There will be a need for content that goes beyond just clicking,” he said.
In terms of user retention, Baruch believes that developers need to find ways to add depth to these products to retain players beyond the “initial clickbait” we currently experience.
Beyond the click
As the craze for idle games grows, game developers and blockchain enthusiasts are looking to the future.
Paglia believes that these projects can be viable in the long term if their founders can formulate a thoughtful economic structure for them. He said: And he confessed:
“Mainstream adoption via clicker game models seems less likely. Players generally play games because they are fun, not because it will make them money.
Notcoin developers appear to recognize this need for evolution and, as a result, have announced plans to introduce new features.
The project recently launched the “Explorer” initiative, which allows users to earn coins and other rewards by completing various tasks from different Web3 projects. Likewise, Hamster Kombat is also looking to expand its offering and launch its HMSTR token on the TON blockchain.
The Latest: Bitcoin Uses More Renewable Energy, But Will Tesla Accept It Again?
The explosive growth of passive cryptocurrency gaming represents a fascinating chapter in the current story of cryptocurrency adoption. These games have undoubtedly succeeded in bringing blockchain technology and digital assets to a wider audience, thanks to the huge user bases of platforms like Telegram.
However, it is still unclear to what extent this trend will be impactful and sustainable in the long term. While the simplicity of these games is what contributed to their initial success, it may also be their greatest weakness.
For now, users attracted by the lure of easy cryptocurrency profits should approach this area with caution, remembering the old adage: if it seems too good to be true, it probably is.
