Tap-to-earn cryptocurrencies like DOGS, Hamster Kombat, and Catizen have experienced a significant decline in performance following their airdrops. Hamster Kombat has seen a sharp drop of over 50% from its peak last week, while DOGS and Catizen have fared even worse.
Similar trends can be observed among other leading tokens in the industry, such as Notcoin, AveCoin, and Pixelverse. As a result, traders are now shifting their focus towards Dogizen, which has emerged as one of the fastest-growing players in the Telegram tap-to-earn sector.
Most tap-to-earn tokens struggle
The tap-to-earn sector has rapidly gained traction within the blockchain industry. For instance, Hamster Kombat has evolved from obscurity into a thriving ecosystem with over 300 million users worldwide. Catizen, a Telegram mini-game, boasts a player base of over 40 million, while DOGS and TapSwap cater to more than 70 million users.
These games have garnered immense popularity for several reasons. Firstly, they are incredibly user-friendly, requiring only a smartphone with the Telegram app installed. Secondly, unlike complex play-to-earn games like Axie Infinity and Decentraland, tap-to-earn games like Notcoin and Hamster offer a simple earning mechanism – by tapping a button or completing straightforward tasks.
Despite their simplicity, most of these tokens have struggled post-airdrop, resulting in substantial losses for players. Notcoin’s market cap has plummeted from over $2.5 billion to under $800 million, while Hamster Kombat’s valuation has dropped from $700 million to below $400 million.
One potential reason for the downturn could be attributed to tokenomics, future dilution concerns, and profit-taking by traders. For instance, Hamster Kombat has 64.3 billion tokens in circulation, with a maximum limit exceeding 100 billion, hinting at potential dilution risks in the future.
Dogizen revolutionizes the industry
Dogizen aims to establish itself as a top player in the Telegram ecosystem by becoming the first ICO within this space. With over 1.3 million users and 393k daily users, Dogizen has rapidly emerged as a prominent player in the industry.
The game’s dog-themed concept aligns well with the growing demand for dog-related assets like Shiba Inu and Dogecoin, as well as the rising popularity of tap-to-earn platforms.
To ensure its success post-airdrop, Dogizen’s developers have implemented various strategies. These include a community-driven launchpad for third-party developers to create Telegram games, a full gaming arcade with additional features, and a Dogizen SDK for developers to build and launch games within the ecosystem.
Dogizen’s ICO is set to commence on Friday, offering 1 trillion tokens with 40% allocated to the community. For more information on Dogizen’s ICO, visit their official website.
The original article was published on Invezz.