Why Tap-to-Earn Crypto Games Won't Make You Rich

Crypto enthusiasts, brace yourselves. The tap-to-earn (T2E) craze is a mirage in the digital gold rush. Hamster Kombat, the game on everyone's lips, boasts:

• 300M+ users
• 100B HMSTR total supply
• <$0.01 per token value

While the global crypto gaming market eyes $65.7B by 2027, tap-to-earn models are bleeding value. For every dollar earned by users, app owners pocket hundreds in ad revenue and data monetization.

Is this a huge wealth transfer masquerading as financial inclusion, or is this the future of cryptocurrency adoption? Let's dissect this phenomenon and explore why (and, more importantly, how) your time might be better spent elsewhere in the crypto ecosystem.

Tap-to-earn (T2E) games, while recently surging in popularity on Telegram, evolved from the play-to-earn (P2E) model that gained traction in 2017 with blockchain games like CryptoKitties or StepN at the beginning of 2022.

Step'N - Make Your Steps Count

These early games combined gaming with investment, allowing players to earn tokens exchangeable for other cryptocurrencies.

As interest in P2E waned, T2E games emerged, with Notcoin leading the charge with an average drop value of 200-400$. Its success story? They gathered over 40 million players before launching its NOT token and airdropped 80 billion tokens. That catalyzed the T2E boom.

NOT Token

This sparked a rush of developers and investors into the space, but Notcoin remains the most lucrative. In contrast, the DOGS airdrop yielded just $10-$20 for Telegram verification and social tasks.

DOGS Airdrop

Catizen cloned Hamster's tokenomics and added a donation mechanism.

Users who donated achieved 3x–4x returns on their initial investments. Non-donors received less than $10 on average.

Catizen

With the crypto gaming market projected to hit $65.7B by 2027, T2E's true colors emerge: monetizing user engagement, not fulfilling wealth promises. The real beneficiaries of this model are the app owners. They can make a lot of money from advertising, gather useful user data, and build a captive audience for token or product sales in the future by drawing in a sizable user base. In the case of Hamster Kombat, reports suggest that each advertising contract was worth over $100,000. The game featured ads from casinos, banks, and marketplaces.

T2E games are masterfully designed to attract and retain a massive audience by leveraging key psychological principles:

1. Simplicity: Anyone with a smartphone can play it.
2. Instant gratification: Players see immediate results from their actions, reinforcing engagement.
3. Social proof: As more people join, it creates a snowball effect of popularity.
4. FOMO (Fear of Missing Out): The promise of crypto rewards taps into the fear of missing the next big thing in the crypto world.

Hamster Kombat exemplifies the tap-to-earn phenomenon, amassing over 300 million users with promises of easy crypto wealth. Its 100 billion HMSTR supply, with 64.38% in initial circulation, quickly led to token values plummeting from $0.012 to $0.008684 over the last few hours after the launch, marking a total decline of 30%.

HMSTR Kombat

Users average payouts of 2,000-3,000 HMSTR, translated to a whopping $20-$40 for six months of engagement. Shockingly, 2.3 million users faced bans, often for using keygens sold by many bloggers. Some received ‘Cheating is Bad’ achievement.

You've been cheating!

This outcome starkly contrasts with the millions many players expected.

‘My wife promised me a new car if she made money from Hamster, but she only got $12. Guess I'll just keep walking!😂’ posted the user of Next100XGEMS Community.

The other user reported receiving 2,044 tokens, pegged to about $25 USD. This sum hardly justifies the time and energy invested over half a year. So, what are…

While Hamster Kombat might appear to be a free-to-play game, it comes with significant hidden costs:

• Time Sink: Users spend countless hours tapping their hamsters, which could be better spent exploring more promising crypto projects.
• Opportunity Loss: The energy devoted to Hamster Kombat diverts attention from learning reliable crypto strategies and participating in profitable DeFi protocols.
• Emotional Toll: The gamification of crypto earnings can lead to addictive behaviors and significant disappointment when rewards don't meet expectations.
• Data Exposure: Players often overlook the value of the personal data they're providing to the app developers, which could be exploited.

The sustainability of the Hamster Kombat model is highly questionable. Users are realizing the small payouts don't justify months of tapping. Most players earned just $20-$40 after six months of play. Regulators might soon step in as these games blur gaming and gambling lines.

Looking at Hamster Kombat's numbers tells the story:

• 100 billion total HMSTR tokens
• 64.375 billion tokens in initial circulation
• 60 billion allocated to player rewards
• 8 billion reserved for the team

Despite allocating 60% of tokens to players, the massive supply and tiny individual value meant most participants got minimal returns. The token value dropped 30% shortly after launch, going from $0.012 to $0.008684.

Skip the hamster tapping and try these proven crypto earning methods:

• Stablecoin Staking gives reliable returns compared to volatile cryptocurrencies. With yields between 5% and 12%, it offers steady growth with lower risk. Platforms automatically manage your stablecoins across secure protocols.

Maximizing Your Profit?

Staking is the key!

• By supplying liquidity to exchanges or lending platforms, DeFi Yield Farming enables you to make money. You support decentralized financial infrastructure while earning token rewards and trade fees.

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• Tokenized Real-World Assets bridge traditional finance with crypto innovation. These platforms offer stable yields backed by tangible assets like real estate or commodities, reducing volatility while maintaining blockchain benefits.

RWA Is a Next Big Thing In Owning Assets

Interested? Read here!

A quick comparison: Hamster Kombat players spent months tapping for $20-$40. A $1000 investment in stablecoin staking at 8% APY earns the same $40 in six months with just seconds of setup time.

In the crypto world, if something sounds too good to be true, it probably is. By educating yourself about various crypto earning methods and approaching the space with realistic expectations, you're more likely to achieve long-term success in the crypto than by tapping a digital hamster endlessly.