The current market can be said to be in the accumulation phase, investor psychology is depressed, the market lacks liquidation, and lacks games. To prepare for the most explosive Bull run season, what we need now is games to play, trends to invest in, from May 2024 to now.
Tap – to – earn (T2E) has sparked community FOMO, making the market gradually become more vibrant. So is this T2E trend really sustainable or just temporary? What are the factors for a trend to lead the market? Let's find out with Allinstation !
What is Tap to earn (T2E) and the origin of this trend!
Initially, Tap-to-earn was actually a branch of GameFi with the development of Mini-app on Telegram . Along with the first birth of Notcoin , a Mini-app game that allows users to earn points through tapping the screen to farm + the game's mission system.
Notcoin was born in early 2024, bringing newness to the community because it is very easy to farm and kill time. However, the Tap-to-earn label is mostly just a name because to get more points , users need to spend money on tasks or farm Ref (Referral).
Notcoin has reached a huge number of users of more than 35 million users + $NOT list Binance + very generous Airdrop for users => Mini-app Tap-to-earn movement exploded , continuously launching trend-following projects with support from Blockchain Ton and Telegram
Read more: What is Notcoin? Why is the project so strongly FOMOed?
What makes the Tap-to-earn trend fomo?
After the Notcoin event, Tap-to-earn has expanded and transformed into many more games, many games, the common motif does not stop at Tap, but extends to the trend of playing games on Telegram 's Mini-app + plowing and clicking back and forth, without spending too much effort.
The main reason Tap-to-earn exploded is because users realized that these are easy farming projects that don't cost too much effort or money, but they also have the hope of receiving a big Airdrop of real money => More and more people are joining this trend.
In addition, the fomo also comes from Airdrop farming groups, with hundreds of thousands of accounts running tools to participate in the project, causing the number of users of the projects to increase day by day, this is beneficial for the project when it has a huge amount of data from users, and in return, users have the ability to get Airdrop.
Trend T2E has not had a resounding success?
Despite the fomo trend, the current temperature has cooled down after the Airdrop of Dogs , another Tap-to-earn game inspired by meme backed by Telegram's CEO .
Dogs created a wave that was even stronger than Notcoin when all Telegram users were given air based on the number of years they used Telegram. However, after the Binance listing, the Tap-to-earn wave almost died out when the following projects could not stand out like their predecessors. Only Dogs caught the Tap-to-earn trend and built an image as a memecoin.
The team behind Dogs is probably quite strong when the Airdrop is quite cool and fair, about 30-50 USD/1 account while users only need to spend a small amount of fee to do the task. Like Notcoin, perhaps Dogs' strategy is to pull a huge amount of user data to the telegram + Blockchain Ton platform above all.
Read more:
- Why did Binance Launchpool list DOGS?
- DOGS: Over 40 Billion Token Airdrop to Over 2.5 Million People in the Last 48 Hours
Non-innovative model
Later projects were almost unable to do the same as Dogs and Notcoin , making this narrative seem to stagnate because users were quite bored with the game, there were no other factors that attracted more than gameplay , mechanics and especially rewards . Later Tap-to-earn projects were also basically based on motifs such as:
- Plow tap tap
- Do roll call duty,..
- Pull ref
- Earn points
The project attracts users mostly because of the hope of " Airdrop Token " but there will be no other rewards, no other factors to give users more motivation to work hard.
The project's internal strength is not enough.
Because the trend model is difficult to innovate, many projects do not have enough potential or are willing to spend to attract users to the game. The purpose of users joining the game is for Airdrop => Users will have to evaluate the project to XEM how big the airdrop potential is, if not, are there any other rewards? Non-Fungible Token, WLs slot,….
But for projects like Blum, Tonmarket , besides users joining and playing games to accumulate points, what other rewards will users receive? This is clearly not available yet. Not only that, but information about Capital calls, revenue and backers of these projects have not been announced, so what will users rely on to continue to believe in plowing?
Lack of Ponzinomic element
Looking back at the success of the DeFi and GameFi trends, all gameplay and economic models are highly Ponziomic, when a new person joins, the old user gets even more profit.
Typically, buying and selling Non-Fungible Token in games like AXS and RACA , the more people join => the more demand to buy Non-Fungible Token to join the game => pushing the Non-Fungible Token price threshold up. Or the Yield Farming model in DeFi when this model gives participants very high interest rates when they have doubled the liquidity add.
As for Tap-to-earn , this is a trend that is quite personal, when the model is mainly each person plows their own account , there is no mechanism of the next person giving money to the previous person. The Ref mechanism of Tap-2-earn can be XEM as a part of the motivation to get more Airdrop , but it is not XEM a factor that causes ponzi and fomo about profits like previous trends.
Because to have many refs, the user must be an influential person or use Tools , which means it needs the influence from the user himself, not the ponzi factor originating from the project model => making the user not interested in joining the game because the reward is not enough for FMO or not being able to access because not using tools.
Factors that make a trend successful
Ponzinomics is a leading factor
Trend T2E has only attracted new people to join and earn money, for example, non-crypto users who still use Telegram. However, because the reward is too low, users may not care at all, or even if they care, they will only care about farming air but not put too much money into it.
The general pattern of trends like GameFi before is:
- High reward + Ponzinomic => Attract new users => Make new people put money into the market => High reward for the whole niche.
Meanwhile, T2E can only do two steps: Have rewards => attract new users to the game => Higher rewards for individual users
Looking back at DeFi 2018, GameFi 2020-2021, M2E late 2021. These are trends that all have two elements:
- Drawing cakes with practical applications: DeFi – finance, GameFi – games, M2E – sports. These things give users something to do, to play with and have more purpose than just sitting around plowing and clicking, requiring patience.
- Ponzinomic: DeFi has Staking , Yield Farming , GameFi has Non-Fungible Token , in-game currency models + forced farming of the game, M2E also has similar elements
Looking back at Tap-2-Earn , at the present time we have not seen any gameplay element that can make the trend explode in user numbers and Fomo.
What future for Tap-2-earn?
It is the above mentioned factors that make past trends attract many users to participate, because they see high rewards from farming, speculation + instant money , opportunities seem to open up before their eyes, transparent team, project cash flow, and investment in the project's economic model.
Looking back at T2E, it was essentially just the element of “ free money ” to attract users + only feeling that there would be money based on the hope of Airdrop. But the hope was not strong enough when there was no information about the team or backer, or calling for Capital . Not to mention that the reward levels from this trend were not high enough for a user who did not use a tool to access.
In the future, if the Tap-2-earn trend adds more mechanisms to cause enough ponzinomic with higher rewards, there is a high possibility that this can still be a trend that can cause a wave of fomo for users and attract non-crypto users.
