Recently, many people have returned to mobile gaming, not just the simple “time-killers,” but those where they can earn digital currencies by tapping on their smartphone screens.
What Are Crypto Games?
Crypto games emerged from the merger of gaming and decentralized finance, referred to in English as GameFi. This term was introduced by one of the pioneers of decentralized finance, Andre Cronje, on September 10, 2020.
The concept of GameFi is based on the intersection of blockchain technology, games, and several forms of decentralized financial products, including NFTs (non-fungible tokens), farming, loans and lending, algorithmic stablecoins, and more.
Since their inception, crypto games have been quite a niche product (even considering the niche status of cryptocurrencies themselves), primarily developed by crypto enthusiasts.
When and Why Did Crypto Games Become Popular?
With the launch of the Web3 game Notcoin on January 1, 2024, everything changed. It was a simple Telegram app that allowed users to earn tokens just by tapping on their smartphone screens. Within just two days, over 1 million users joined the game!
The total number of players has already exceeded 40 million, and their earnings amounted to about $1.5 million. On May 16, the NOT cryptocurrency officially appeared on major exchanges, one of which could not even withstand the influx of traders and suspended operations that day. In a short period, users could accumulate more than 50,000 NOT, which could be converted into more than $1500.
The incredible success of Notcoin has attracted users, developers, and even people who had never heard of cryptocurrencies to the GameFi sector.
The category of crypto games focused on tapping the screen for rewards has been labeled as “tap games” or “clickers.” Their numbers are growing rapidly, with more developers looking to join this successful segment. There are already thousands of clones of NOT, and shortly, there could be tens of thousands.
Furthermore, the popularity of crypto games is bolstered by their advantages:
- Accessibility: These games are usually free and easy to navigate, attracting users.
- Profitability: The example of Notcoin showed that significant earnings can be made in crypto games without needing to understand blockchain, trading, or putting in much effort. Almost all blockchain-based games have an internal currency, a marketplace, and a tokenomics policy for coin distribution.
- Decentralization: GameFi projects are generally managed and controlled by the community, with players able to participate in decision-making regarding future developments.
- Cryptocurrency Features: Crypto games leverage the best aspects of digital currencies and networks: owner control over their capital, fast and cheap transactions, privacy, and more.
What Should Investors Expect?
Crypto games, specifically “tap games,” are an excellent marketing strategy for promoting projects. However, “clickers” will likely lose popularity in the long term as users may quickly tire of their primitive interface and gameplay.
Nevertheless, the large influx of audience and interest they generate will push developers to enhance the games: by implementing artificial intelligence, virtual reality, full-fledged storylines, and more. If development follows this path, crypto games will become more engaging and attract a larger audience.
As the sector is just beginning to fully develop, investors should devote time to thorough research and analysis, especially regarding projects that require capital investment.
Currently, GameFi is one of the easiest ways to explore the world of cryptocurrencies. Over time, liquidity in the sector is expected to grow, offering more investment opportunities.
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