Is the Tap-to-Earn Trend Losing Steam? $DOGS Set to Launch Amid Growing Concerns

The Tap-to-Earn crypto trend has rapidly spread across the country, with only a few people escaping the frenzy. The craze reached unexpected places, with images surfacing online of individuals tapping their phones even during church services.

Following the initial success of NOTCOIN in this niche, several other projects have emerged, the latest being $DOGS, which is set to launch on OKX on August 20th. Currently, $NOT trades at $0.01083 per token.

This rapid emergence of new Tap-to-Earn projects raises questions about whether the narrative is becoming oversaturated. Is the Tap-to-Earn trend still viable?

The TON Ecosystem

The TON ecosystem, a decentralized cryptocurrency platform, was created by Telegram. Originally a messaging app, Telegram has evolved into a platform that now supports cryptocurrency, functioning as a wallet, decentralized app (DApp) browser, and tool for deploying smart contracts. The native token, TON, is used for gas fees and executing smart contracts on the platform.

Understanding Tap-to-Earn

Many Nigerians were puzzled when people started earning from NOTCOIN. So, what exactly is Tap-to-Earn?

With Telegram’s evolution, the app now supports the deployment of smart contracts and Web3 DApps, allowing developers to create and run apps within Telegram. Tap-to-Earn refers to these Telegram apps, where users perform simple tasks like tapping, referring others, and completing quests to earn points. These points can eventually be converted into real money, and credited to users’ wallets. But why are users paid for seemingly doing nothing?

The Tap-to-Earn Business Model

Vladimir Toporkov, CMO of Edelcoin, explains that initial hype was a significant factor in NOTCOIN’s success. The game attracted 4.1 million users within its first week on Telegram, far outpacing Facebook, which took a year to reach 1 million users. Within a month, NOTCOIN had 4 million daily active users (DAU) and 20 million total players, nearly double the peak active users of Axie Infinity in 2021.

This massive user base is crucial to the business model behind Tap-to-Earn, which relies heavily on active users. Revenue comes from advertisements, the appreciation of native tokens, and venture capital funding. To sustain this revenue stream, it is vital to keep users engaged, which is why these projects continuously incentivize activity.

When the native token appreciates, the project team profits financially. Active NOTCOIN users were rewarded with NOT points, which were eventually converted into $NOT tokens and exchanged for real money. The Tap-to-Earn model is essentially about incentivized gaming: keeping users active and rewarding them for it. But what happens if user activity declines or if the narrative becomes oversaturated?

The Future of Tap-to-Earn

Projects like Bitcoin, Raypower FM, Amazon, and Microsoft have benefited from what experts call a “first-mover advantage.” Being the first in a particular niche provides a significant edge. Despite better technology and security from newer digital currencies, none have matched Bitcoin’s hype. Similarly, NOTCOIN benefits from being the first in the Tap-to-Earn space.

However, new entrants may struggle to achieve the same success as competition increases and users become more discerning. The rapid proliferation of new Tap-to-Earn projects like Hamster Kombat, Blum, PocketFi, Catizen, Pixel Verse, and Aqua Protocol raises doubts about the sustainability of this trend.

Given how easy it is to launch and market these projects, it’s hard to believe they will all succeed. Many of these projects lack unique value, making their long-term sustainability questionable. For instance, while NOTCOIN offers Tap gaming, its interface is unimpressive. Blum aims to integrate several blockchains into one, but modular chains like Celestia and traditional decentralized exchanges (DEXs) already tackle this issue. The more you dig, the less sustainable the narrative appears.

$DOGS Withdrawal in Progress

Users can now request withdrawals of $DOGS from the DOGS app on Telegram. While the status is still pending, further updates from the team will clarify when these points will be credited to users’ wallets. It’s worth noting that $DOGS tokens were allocated based on the age of users’ Telegram accounts, with older accounts receiving more points. Users who referred others also earned points.

On the microblogging platform X, excitement is building as users anticipate the launch price of the $DOG token. Optimistic users are already planning what to buy when the tokens launch at a favorable price. In closing, may the dogs be with them. Woof!

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