The post Tap-to-earn games are thriving but their tokens face potential risks appeared on BitcoinEthereumNews.com.

Tap-to-earn has emerged as the fastest-growing sector in the blockchain industry, with the biggest platforms attracting millions of users. Notcoin, one of the first tap-to-earn platforms to launch an airdrop, has seen its market cap jump to over $1.6 billion, making it the 50th largest crypto in the industry by market cap. Notcoin is not alone as Hamster Kombat accumulated over 230 million users and almost 33 million YouTube subscribers in less than two months. Its videos have accumulated over 600 million views. TapSwap has also added over 63 million users, 20 million daily active users, and over 4 million YouTube subscribers. Other tap-to-earn networks have also emerged, with notable ones being AvaCoin, DotCoin, and YesCoin. As a result, using Notcoin’s valuation, we can assume that platforms like TapSwap and Hamster Kombat will have a significant valuation when they start trading after a pending launch. These platforms have achieved significant growth for three main reasons. First, they are very simple to use as all you need is a Telegram app installed on your phone. Second, these tap-to-earn platforms have gone viral on social media and are benefiting from the network effect. All of them offer referral rewards to users. Third, there is a potential for high returns when they launch their airdrops, making it possible for holders to convert their tokens to fiat. Lessons from play-to-earn and move-to-earn Tap-to-earn is not the first gaming platform to go viral in the blockchain industry. Play-to-earn networks like Decentraland and Axie Infinity had thousands of gamers at their peak in 2021. Today, their popularity has faded, and their tokens have plunged by over 80% from their all-time high. Data from DappRadar shows that Decentraland had 829 unique active wallets (UAW) in the last 30 days, while Sandbox had less than 2,300 active wallets. The…

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Filed under: News - @ July 11, 2024 10:14 pm