Bitaigen Research Our Bitaigen editorial team conducts an in‑depth analysis of the emerging “click‑to‑earn” model on Telegram, focusing on the economic logic behind its low‑entry barrier, ad monetization and airdrop incentives, and evaluating the ecosystem’s sustainability in terms of user retention and token value. The full article will reveal industry trends and potential challenges, and is worth a careful read.
The economic strategy behind Telegram’s click‑to‑earn model relies on lowering entry barriers, advertising revenue, and airdrop incentives to attract mass users; however, it still faces challenges in maintaining ongoing operations and token value.
Since 2024, the Telegram click‑to‑earn model has risen rapidly, especially the games Hamster Kombat and Notcoin on the Telegram platform, which have respectively attracted hundreds of millions of players and amassed close to $30 billion in token market cap, placing them among the top‑100 tokens worldwide. Below is a detailed breakdown of their economic logic and development prospects.
All of this revolves around the “click‑to‑earn” mechanism—players simply tap the screen on their mobile device to earn in‑game coins or points, which are later converted into crypto tokens via airdrops. Is this model an evolution of the play‑to‑earn games that flourished in the previous bull market, or merely another fleeting trend? This article examines the question from multiple angles.
1. Core Elements of the Economic Strategy
- Low entry barrier: Players only need a smartphone capable of running Telegram, with no upfront financial investment required.
- Ad‑driven: The platform generates revenue by displaying advertisements, replacing the reliance on fresh‑user capital that characterized many play‑to‑earn models.
- Airdrop incentives: New users receive a token airdrop upon first login, creating a rapidly expanding user base.
Together, these components construct a relatively sustainable ecosystem and reduce the risk of user churn.
2. Comparison with Traditional Play‑to‑Earn Models
| Dimension | **Play‑to‑Earn** (e.g., Axie Infinity) | **Click‑to‑Earn** (Telegram) |
|---|---|---|
| Entry cost | Purchase or lease of NFTs, costing several hundred USD | Only a phone, no monetary outlay |
| Revenue source | Primarily token trading and in‑game economy | Primarily ad revenue share and airdrops |
| Gameplay depth | Complex strategy and combat systems | Simple tap‑and‑upgrade loop |
| Sustainability | Highly sensitive to token price volatility | Dependent on ad revenue and active user count |
Axie Infinity attracted many low‑income‑region players in 2021 with its high returns, but a sharp token price collapse later caused its economic system to crumble. In contrast, click‑to‑earn lowers dependence on token price by leaning on advertising income.
3. User Scale and Market Performance
- Hamster Kombat: Approximately 300 million cumulative players, earning tokens mainly through repeated tapping and upgrading.
- Notcoin: Launched with roughly 35 million users and aims to build a crypto‑gaming aggregation platform similar to Netflix.
- X Empire: Claims around 45 million players, further confirming the appeal of low‑threshold models.
U.S. market research shows that 63 % of respondents prefer casual games, which aligns closely with the light‑entertainment nature of click‑to‑earn.
4. Development Challenges and Future Outlook
- Insufficient content depth
- Low barriers often come with simplistic gameplay, causing players to drop off once the novelty fades.
- Developers will need to balance instant rewards with richer, longer‑term experiences to keep engagement high.
- Reliance on advertising ecosystems
- Revenue is tied to ad inventory and CPM rates, which can fluctuate with broader market conditions.
- A sudden dip in ad spend could pressure the token‑distribution model.
- Regulatory and tax considerations
- In many jurisdictions, token airdrops and earnings from ad‑based games may be treated as taxable events. Users should consult local tax regulations and may need to report gains via SEPA/SWIFT‑compatible fiat conversions.
- Token valuation pressure
- While the model reduces direct dependence on token price, the tokens still need market liquidity and perceived value to attract users. A sustained drop in token price could erode the incentive structure.
Overall, Telegram’s click‑to‑earn ecosystem presents a compelling low‑cost entry point for global users, especially in regions where traditional gaming infrastructure is limited. Its long‑term viability will hinge on diversifying gameplay, stabilizing ad revenue, and navigating evolving regulatory landscapes.
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