[TL; DR]
Two months ago, Iran's president, Ebrahim Raisi, perished in a helicopter crash.
In the aftermath, Iran conducted an election to find his successor, but there was a complication: A high-ranking official in Iran's military disclosed that the country's citizens were too preoccupied to thoroughly vet the candidates.
Reportedly, millions of Iranians were engrossed in their phones, captivated by a crypto game called "Hamster Kombat."
This game seemingly emerged from nowhere. It launched in March on TON, The Open Network, a Web3 platform integrated with Telegram. The game gained immense popularity, prompting Rear Admiral Habibollah Sayyari, Iran’s deputy chief of the military, to accuse it of being a tool in the West’s “soft war” against Iran’s government. According to the AP, Sayyari stated, “One of the features of the soft war by the enemy is the ‘Hamster’ game.”
The idea that the United States might be using Web3 hamsters against Iran is intriguing, if a bit far-fetched. Nonetheless, the notion itself is significant. Even the team behind TON Foundation are acknowledging that the game has become so huge that it even reached the world of politics.
Hamster Kombat and TON
The founder of Hamster Kombat remains anonymous and has declined interview requests. The game claims over 200 million users, 11 million Twitter/X followers, and 31 million YouTube subscribers. This is just one of several rapidly growing “GameFi” projects on TON. Web3 games are thriving, with the cute and cartoonish “Catizen” boasting over 23 million users and TON’s first big hit, “Notcoin,” surpassing 40 million.
Overall, the TON network now has 500 million users, according to the foundation. With a market cap of $19.4 billion, Toncoin has soared to become the eighth largest crypto project, outpacing established names like Polkadot, Cardano, and NEAR.
The Iranian military isn’t concerned about Polkadot or Cardano; it’s the TON games that stand out. These games are simple and entertaining, breaking out of the crypto niche to reach a mainstream audience, similar to the rise of NFTs in 2021. These games are not just for the crypto enthusiasts but also for everyday users exploring blockchain for the first time.
One factor behind TON's rapid growth is Telegram's extensive global reach, particularly in Europe and Asia, with over 900 million users. However, as of December 2023, only a small fraction of these users were playing games on Telegram. Sensing an opportunity, entrepreneurs jumped in.
Seeing the potential in Telegram and TON, games like Catizen, Notcoin, Yescoin, and Tapswap quickly filled the gap. These games are designed to be simple and easy to play, even during brief moments like waiting for an elevator. Their hyper-casual nature is what attracts users. Telegram games are easy to install, play, and connect to crypto, though Telegram’s native crypto wallet is not available in the US due to regulatory issues. For years, the Web3 space struggled with complicated interfaces and confusing protocols, but TON has seemingly resolved these issues overnight.
The seamless user experience is why some analysts believe TON is positioned to become a significant player in the crypto space. TON games are straightforward. In past experiences with Web3 projects, it typically required lengthy tutorials to get new users up to speed. With TON, onboarding is much simpler and quicker.
The games are built to be fun and captivating. Starting such a game takes just seconds, and players can earn rewards by referring friends and sharing on social media, driving growth. The gameplay involves simple actions like clicking or swiping, making them easily accessible.
Hamster Kombat, for instance, is a self-aware game filled with references to Web3 culture. Players act as the CEO of a crypto exchange, making decisions on marketing, PR, and legal matters. Unlocking perks like “SEC Transparency” can enhance profit-per-hour, along with implementing KYC or obtaining licenses to operate in different regions. Despite its complexities, the game has found an audience among mainstream users.
Read also: How to Buy Hamster (HAM)
Blockchain Games and The Open Network
While TON games may seem like they appeared out of nowhere, many have been in development for years. Similar to the NFT boom in 2021, insiders had been tracking these projects long before they gained widespread attention. For example, Catizen began exploring Telegram as a platform back in 2021.
Consider a bold prediction from January 2023 that stated TON would become the largest blockchain in terms of user numbers due to its technology and its integration with Telegram. Telegram, with its 700 million monthly active users, serves as the primary messenger for the crypto community. The founders of Telegram, who also developed TON, have integrated blockchain technology to sell Telegram usernames and anonymous numbers as NFTs and recently announced non-custodial wallets and decentralized exchanges.
This prediction has come to fruition. However, a vast network and a user-friendly interface only tell part of the story. TON games also offer the enticing prospect of making money.
Millions of Notcoin users, after repetitive tapping and earning coins, were thrilled to receive an airdrop of 80 billion Not tokens, converting their casual gameplay into something of real value. Notcoin, a mini app on Telegram, quickly reached 35 million active users, enabling them to convert in-game currency into real money. Despite regulatory issues with the SEC, Telegram has officially distanced itself from TON.
Notcoin set a new standard, prompting millions of users to engage with other games in hopes of future rewards. The concept of Play-to-Airdrop has replaced Play-to-Earn, with games like Catizen adopting the tagline “Play to Airdrop.”
In the Web3 space, growth is often linked to price appreciation, and GameFi is no exception. The recent success of these games is largely attributed to traditional speculation. While the reported number of users might be inflated due to multiple wallets per person, the underlying fundamentals remain strong.
Other game developers are taking notice. This trend demonstrates that users want gaming integrated into their social interactions with real-world value embedded in the gameplay.
However, there’s always a catch in the crypto world. The memory of Axie Infinity, once a favorite in the crypto gaming hype cycle but now a cautionary tale, serves as a warning. The difference with TON games is that they have no high entry barriers or expensive initial investments, unlike Axie.
TON games focus on traffic, with airdrops serving as marketing campaigns to attract users. The traffic generated can be monetized through advertisers, creating a sustainable model.
Skeptics argue that games like Hamster Kombat may not be sustainable in the long term. For a network to be truly successful, it needs profitable apps. There is speculation that TON might be nearing a market peak, and the real test will come after a significant downturn. However, with its strong user experience and distribution advantages, TON has the potential to survive and thrive.