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Telegram social gaming brings millions to cryptocurrencies

AltcoinUpdates Staff

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Telegram social gaming brings millions to cryptocurrencies

In past lives I have been an urban planner, a crime boss, and the CEO of a thriving cryptocurrency exchange. On Telegram, obviously. Why I like work cosplay is a question for my therapist. But it’s fascinating how many Web3 games explore these roles in real life. And it’s great that the rewards are starting to be more worth the bragging rights among your friends.

I wasted endless amounts of time building my Sims’ town in the early 2000s, where I turned a small village into a bustling metropolis on my underpowered Windows95 desktop. I had to think about energy management and food supply routes and whether or not a stadium was necessary for tax revenue to support some other park.

Fast forward to 2009 and I’m living my best Tony Soprano life with two baseball bats, a Tommy Gun, and enough property to make me one hundred and seven thousand dollars every 54 minutes in virtual currency. What “Mob Wars” had that The Sims didn’t was the network effect power of Facebook’s recommendation feed. The fact that you could see the moves your friends were making made you want to play the game, and the exponential effect just kept going round and round.

Until Facebook put a stop to the category, reducing external notifications, taxing virtual objects and giving priority to its own features over those of third parties.

Telegram has learned some lessons from the original social media platforms and added new ways of gamification that appeal to the insatiable gambler mentality of the cryptocurrency public. Telegram, which has 900 million monthly users, is proving that gaming could become the next big player/customer acquisition platform to help grow a blockchain-based business.

Telegram Messenger has been around for over ten years. Brothers Nikolai and Pavel Durov created the encrypted messaging platform in 2013 and soon after counted one hundred thousand users on the nascent platform.

Today, that number is approaching a billion, and while it’s not fully decentralized, its mix of advanced cryptography and distributed storage security make it a favorite among the crypto community. And that was before Hamster Kombat hit the platform.

There have been numerous Telegram crypto bots to date: services like Meme and Gif creators, GitHub notification bots, Gmail and Spotify integrations. One type of application that the cryptocurrency public is particularly interested in is gamification. From BonkBotwhich allowed the simple and very fast launch of cryptocurrencies during the recent memecoin season from Solana to Notcoin, which has collected a success $1 billion in FDV after 35 million players grind on Telegram-based gaming from January to April. Clear lesson: Utility plus fun, plus encryption, works well on messaging app. A hamster comes calling

The latest competitor to catch fire in this scheme is Hamster Kombat. In just over four weeks, the app has grown to over 8 million players, with more than 3 million playing every day.

The premise of Hamster Kombat is pretty simple. You are the CEO of a cryptocurrency exchange of your choice (Binance, OKX, MEXC and others). At the beginning, all you have to do is tap the hamster on the screen to start earning points. As soon as the available points run out, they start counting again, encouraging you to come back and tap more.

Once you have accumulated enough, you, as the CEO, can start putting your currency to work. You can invest your points in BTC and ETH pairs getting hourly returns. You can spend on CoinTelegraph (or CoinDesk, if you get to level 10) or to improve your KYC or AML security. Each choice returns you more hourly profits so you can now earn passively and put more currency to work growing your imaginary exchange.

From a marketing perspective, the more you share with friends, the more you join connected channels, the more you earn to grow your business, the better. Hence the SocialFi overlay that makes the game so viral. I have seven friends, all of whom play via links I’ve shared with them, which gives me more currency to use to grow my empire.

Hamster Kombat allows partners to purchase “cards” and players to take actions and earn more currency every hour. Joining a partner Telegram channel can cost 15,000 points. But it pays off at 3000 points per hour, making it something that “pays for itself” in 5 hours of active involvement in the game. This partner, a new gaming blockchain, saw its Telegram subscribers increase to over 1.2 million people in just days after launching with Hamster Kombat, incredibly rapid onboarding of new users into an ecosystem where the attention and users are in high demand. That’s when I felt the need to reach out and investigate what their special sauce is.

I contacted Nikita Anufriev, marketing consultant for Hamster Kombat and host of a popular Russian-language program crypto channel on Youtube. Anufriev confirmed that the project was launched on March 25 this year and it took just 11 days to reach 1 million players. Since then, it has surpassed 8 million players and, according to it, 2.8 million users play every day with an average usage time of 52 minutes per day. Pretty disconcerting for a new game tied directly to a social media platform.

When asked about the game’s genesis, Anufriev gave credit to a decade-old game called USA Simulator, an iOS/Android game from the mid-2010s in which you play as a politician with the stated goal of “Developing your country, extend the sphere of influence and lead the country to world domination!.” He said the founders were inspired by the game and reframed it specifically for the cryptocurrency industry and let users put themselves in the shoes of CZ (Binance) or Brian Armstrong (Coinbase).

“The viral effect started from 3 [shares per player] and now we are closer to 15,” Anufriev said. “The mechanics of the game, like a new card, pushes you to invite friends and we have seen this problem in some regions where too many influencers have started promoting it and normal people don’t have enough people to invite.” Anufriev’s team was targeting an audience of influencers for the first few hundred thousand users, but then the network effect took over. “Telegram is very popular among cryptocurrency users and is the number one messaging app for that audience,” he notes.

Telegram’s TON (Telegram Open Network), Telegram’s Layer-1 Blockchain, has recently seen serious adoption, and TON the token grew with it. But Anufriev said the project will issue its token on the Binance Smart Chain, with the end of May as the expected release date.

Nikita Anufriev and many other Hamster players will come Consensus 2024 and we’ll see if this reward-seeking community will also unite in real life or if they will prefer to be an anonymous player from behind a screen. For now, Telegram appears to be a place that anyone in the cryptocurrency world looking to build an audience should pay attention to.

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We are the editorial team of Altcoin Updates, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on Altcoin Updates, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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How Ether Spot ETF Approval Could Impact Crypto Prices: CNBC Crypto World

AltcoinUpdates Staff

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How Ether Spot ETF Approval Could Impact Crypto Prices: CNBC Crypto World

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CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and gives viewers a glimpse of what’s to come with high-profile interviews, explainers and unique stories from the ever-changing cryptocurrency industry. On today’s show, Ledn Chief Investment Officer John Glover weighs in on what’s driving cryptocurrency prices right now and how the potential approval of spot ether ETFs could impact markets.

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Miners’ ‘Capitulation’ Signals Bitcoin Price May Have Bottomed Out: CryptoQuant

AltcoinUpdates Staff

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Miners' 'Capitulation' Signals Bitcoin Price May Have Bottomed Out: CryptoQuant

According to CryptoQuant, blockchain data shows signs that the Bitcoin mining industry is “capitulating,” a likely precursor to Bitcoin hitting a local price bottom before reaching new highs.

CryptoQuant analyzed metrics for miners, who are responsible for securing the Bitcoin network in exchange for newly minted BTC. As outlined in the market intelligence platform’s Wednesday report, multiple signs of capitulation have emerged over the past month, during which Bitcoin’s price has fallen 13% from $68,791 to $59,603.

One such sign includes a significant drop in Bitcoin’s hash rate, the total computing power that backs Bitcoin. After hitting a record high of 623 exashashes per second (EH/s) on April 27, the hash rate has fallen 7.7% to 576 EH/s, its lowest level in four months.

“Historically, extreme hash rate drawdowns have been associated with price bottoms,” CryptoQuant wrote. In particular, the 7.7% drawdown is reminiscent of an equivalent hash rate drawdown in December 2022, when Bitcoin’s price bottomed at $16,000 before rallying over 300% over the next 15 months.

This latest hash rate drop follows Bitcoin’s fourth cyclical “halving” event in April, which cut the number of coins paid out to miners in half. According to CryptoQuant’s Miner Profit/Loss Sustainability Indicator, this has left miners “mostly extremely underpaid” since April 20, forcing many to shut down mining machines that have now become unprofitable.

CrypotoQuant said that miners faced a 63% drop in daily revenue after the halving, when both Bitcoin block rewards and transaction fee revenues were much higher.

During this time, Bitcoin miners were seen moving coins from their on-chain wallets at a faster rate than usual, indicating that they may be selling their BTC reserves“Daily miner outflows reached their highest volume since May 21,” the company wrote.

Among the sales of Bitcoin miners, whales and national governmentsBitcoin’s price drop in June also hurt Bitcoin’s “hash price,” a metric of Bitcoin Miner Profitability per unit of computing power.

“Average mining revenue per hash (hash price) continues to hover near all-time lows,” CryptoQuant wrote. “Hashprice stands at $0.049 per EH/s, just above the all-time low hashprice of $0.045 reached on May 1st.”

By Ryan-Ozawa.

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US Congressman French Hill Doubles Down on Trump’s Pro-Crypto Stance

AltcoinUpdates Staff

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US Congressman French Hill Doubles Down on Trump's Pro-Crypto Stance

US lawmaker French Hill has noted that Donald Trump will take a more pro-crypto approach than the current administration. The run-up to the presidential election has seen cryptocurrencies become an issue with lawmakers making huge statements ahead of the polls. Donald Trump has also been reaching out to the industry, making a pro-crypto case.

French Hill Backs Trump’s Pro-Crypto Stance

Republican Congressman French Hill has explained the type of cryptocurrency regulatory framework he believes Donald Trump could adopt in the country. In a recent interview with CNBC, French Hill said that the recently passed FIT21 bill is the type of regulatory framework the Trump administration will adopt in the sector.

THE FIT21 Bill It is intended to protect investors and consumers in the market by establishing clear rules and powers for the various regulators in the sector. According to Hill, Trump will adopt it because it directs the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on the specific regulatory framework needed in the market.

“… for people who are innovating and starting a crypto token, a related business, custody of those assets, how to ensure consumer protection, so I think that framework is the right approach and that’s what I’m going to recommend to the President to pass, which is that we have not passed it between now and the end of this Congress.”

He also called Trump an innovative and pro-growth president in financial matters.

Cryptocurrency is going mainstream

This election cycle saw the cryptocurrency industry taking a place in mainstream issues following broader adoption across demographics. From candidates moving toward enthusiasts to recent pro-Congress legislation, cryptocurrencies have become a rallying point for officials. The U.S. regulatory landscape has been criticized for stifling growth due to frequent SEC LawsuitsThis has led executives to push for pro-cryptocurrency laws and raise money for pro-industry candidates.

Read also: Federal Reserve Predicts “AI Will Be Deflationary” to Stimulate Economy

David Pokima

David is a financial news contributor with 4 years of experience in Blockchain and cryptocurrency. He is interested in learning about emerging technologies and has an eye for breaking news. Keeping up to date with trends, David has written in several niches including regulation, partnerships, cryptocurrency, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.



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US Court Orders Sam Ikkurty to Pay $84 Million for Cryptocurrency Ponzi Scheme

AltcoinUpdates Staff

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U.S. Court orders Sam Ikkurty to pay $84M for crypto Ponzi scheme

A federal court has ordered Jafia LLC and its owner, Sam Ikkurty, to pay nearly $84 million to cryptocurrency investors after ruling that the company was operating a Ponzi scheme.

The ruling, issued by Judge Mary Rowland in the U.S. District Court for the Northern District of Illinois, follows a lawsuit filed by the Commodity Futures Trading Commission (CFTC) in 2022 after the fund collapsed.

Judge Rowland found that Ikkurty, based in Portland, Oregon, did numerous false claims on his company’s hedge funds.

These included misleading statements about his trading experience and the promise of high and stable profits. Instead, Ikkurty used funds from new investors to pay off previous investors, a hallmark of a Ponzi scheme.

The Ponzi Scheme

The court found that Ikkurty misappropriated investment funds for personal use without the knowledge of the investors. These funds were used for personal use and were reported as Fraudulent Investmentscausing significant financial losses to customers.

This non-transparent operation violated Transparency Commission regulations, which led to the imposition of a hefty fine to compensate defrauded investors and restore some public confidence in the financial system.

Judge Rowland emphasized that fraudulent activity such as this violates the law and undermines the integrity of modern financial markets. The $84 million award seeks to address the financial harm inflicted on investors and reinforce the importance of legal compliance in cryptocurrency trading.

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