Gaming on the TON blockchain, associated with the Telegram messaging app, has witnessed remarkable growth recently. Inal Kardan, the gaming lead at TON Foundation, reported that approximately 20% of Telegram's users are now engaging with games, marking a significant increase from just 1% last December. In this article, we break down a recent interview with Inal Kardan and The Block, covering key points from the conversation.

Telegram Logo

The Rise of Telegram

Telegram, with its user base of around 950 million globally, has become a notable platform for blockchain-based gaming. Casual games like Notcoin, Hamster Kombat, and Yescoin have notably contributed to this surge, potentially onboarding millions to web3. These games, which offer players the opportunity to earn token rewards, have made blockchain gaming more accessible to a broader audience.

Kardan highlighted that while these games focus on community-building and engagement, their monetization models are evolving. Currently, the emphasis is on generating traffic rather than in-app purchases. However, this approach will need to adapt following token generation events (TGEs), which are crucial for the financial sustainability of these games.

"At least 10% to 12% as on other socials, or even 30%, as on WeChat. Now around 20% of users of Telegram play at least one game per month. So it grew 20 times. All these games, their monetization model is not about in-app purchases, it’s all about traffic. They are all monetizing traffic in different ways. You cannot monetize traffic the same way as they do it right now after the TGE (token generation event). So after their TGE, their model has to change."

The Open Network (TON) Ecosystem

Case Study One: Notcoin

Notcoin has set a precedent in the space with its successful $1 billion token airdrop, distributing 80 billion NOT tokens in May. This strategy has boosted Notcoin's ecosystem, with the game's token currently valued at a $1.1 billion market cap. The Notcoin team continues to expand its reach through new game launches and marketing campaigns, aiming to maintain high player engagement.

"They're launching companions, they're launching marketing campaigns, they want to launch new games. They even launched an acceleration program. This is about finding a way to keep your existing audience engaged. You already have millions of users, and you have to offer them something interesting."

NOT Among the Top Gaming Tokens

Case Study Two: Hamster Kombat

Hamster Kombat is another prominent title within this ecosystem. Although it claims over 300 million users, the game is facing challenges related to bot accounts and the logistics of a large-scale airdrop. The project has postponed its TGE to address these issues, with plans to allocate 60% of the airdrop to players. Kardan remains optimistic about Hamster Kombat's potential, noting that its substantial user base could convert into a viable revenue stream with the introduction of mid-core games.

"They already have a huge audience. They can try to convert those users into players of a new game and if that new game is a mid-core game where people are more likely going to spend money on in-app purchases. They will have a really good revenue stream."

Hamster Kombat with Telegram Logo

Future of TON and Telegram

Mid-core games, which are more complex than casual games but less intensive than console games, are expected to play a significant role in the future of gaming on TON and Telegram. These games often generate substantial revenue through in-app purchases as players invest in enhancing their gaming experience.

Kardan mentioned a game called Gatto, a mid-core title on Telegram, which has already seen success in both user engagement and revenue. He anticipates more mid-core games will be launched in the coming months, further contributing to the development of the gaming ecosystem on the platform.

"There is a game called Gatto; this is a mid-core game on Telegram like Tamagotchi, where you have your own pets, and you have to play with them. We see that they have started getting lots of users, and they have good revenue as well. We expect that more games like Gatto are going to be launched on TON and Telegram in the next six months.”

Gatto Cover Banner on X

Final Thoughts

In conclusion, the integration of gaming with the TON blockchain and Telegram has significantly impacted the crypto gaming sector. The increase in user engagement, from 1% to 20% of Telegram's active users playing games, reflects a growing interest in blockchain-based gaming. Games like Notcoin and Hamster Kombat have successfully attracted large user bases and demonstrated effective token strategies. 

As the ecosystem evolves, the introduction of mid-core games is expected to further influence the development and profitability of gaming on these platforms. Overall, the future of gaming on TON and Telegram looks promising, with continued growth and adaptation likely in the coming months. You can read the full interview here.