Telegram’s Gaming Token Notcoin ($NOT) Falls 70% After Launch, Could Solana’s TapSwap $TAP Overtake?

The Rise and Fall of Notcoin

Notcoin, a viral clicker game launched in January 2024, took the crypto world by storm with its massive user base and airdrop.

However, its trading launch on major exchanges saw a rapid decline in value, raising questions about the sustainability of the gaming token category.

From Humble Beginnings to Crypto Exchange Debut

Notcoin began as a Telegram Mini App, a small application integrated into the messaging platform. This format allowed users to play the game directly within the messaging platform, eliminating the need for additional downloads.

The gameplay was straightforward: users simply tapped a Notcoin icon to "mine" the in-game currency. This attracted a large player base, with Notcoin claiming over 35 million users, roughly 0.4% of the global population.

The game's success caught the attention of major crypto exchanges.

Binance, OKX, Bybit, and several others announced plans to list the Notcoin token (NOT) on their platforms, creating a buzz around the launch.

On 16 May, NOT finally commenced trading on these exchanges across various time zones, including San Francisco, New York, London, Dubai, and Hong Kong.

This widespread accessibility promised increased liquidity and potentially attract new investors to the Notcoin ecosystem.

NOT's Volatile Debut and Airdrop

Alongside the exchange listings, Notcoin also conducted a massive airdrop.

Over 80 billion NOT tokens were distributed to participants who had previously "mined" the in-game currency and connected a TON wallet.

This airdrop aimed to reward early adopters and incentivise participation in the Notcoin ecosystem.

However, the initial euphoria surrounding the launch was short-lived. Within hours of the airdrop, the price of NOT began a dramatic decline, ultimately plummeting by 70%. Presently, $NOT token is trading at $0.006474.

This sharp drop can be attributed to several factors.

Firstly, many airdrop recipients, motivated by quick profits rather than long-term investment, rushed to sell their newly acquired tokens. This selling pressure significantly outweigh any potential buying interest, driving the price down.

Secondly, NOT's performance mirrored a broader trend within the gaming token sector. Gaming tokens, in general, have underperformed in 2024 compared to other popular categories like AI and meme coins. This lackluster performance likely contributed to investor hesitation towards NOT, further fueling the sell-off.

The rapid decline of NOT after its launch served as a stark reminder of the volatility inherent in the cryptocurrency market. It also highlighted the challenges associated with airdrops, which can sometimes lead to a short-term pump-and-dump scenario.

Notcoin's Early Days

A meme coin developed by a little-known team called Open Builders, Notcoin's success stemmed from its clever use of the Telegram platform. By leveraging the massive user base of Telegram, the game was able to attract a significant player base quickly.

Unlike most cryptocurrency projects with detailed whitepapers outlining technical specifics and team backgrounds, Notcoin's official website offered a minimalist experience, directing users to their Telegram community and social media channels.

Their whitepaper itself was a blank document, further emphasising their unconventional approach.

Additionally, Notcoin partnered with "hundreds" of web3 organisations, allowing them to advertise within the game and reward players for engaging with their projects.

This strategy helped Notcoin establish itself as a gateway to the broader web3 ecosystem.

Bybit Fumbles Notcoin Launch

Crypto exchange Bybit faced a storm of controversy surrounding its initial listing of Notcoin (NOT), a play-to-earn game with its own token built on the Telegram platform.

The issue stemmed from a critical misstep: not all users received their airdrop before the market opened for trading.

This disadvantaged users who hadn't received the airdrop, putting them at a significant disadvantage compared to those who had access to the free tokens.

The consequence?

A much lower trading price for Notcoin on Bybit compared to other exchanges.

Bybit CEO Ben Zhou scrambled to rectify the situation. He acknowledged the problem in a post just hours before trading commenced, explaining that Bybit's wallet had received a large volume of transactions but processing them all to reflect individual user balances was taking longer than anticipated.

Zhou assured users that Bybit was working on manual credits for everyone before the market opened and promised a compensation plan for the over 300,000 users affected by the abnormal account balances. He also admitted that only 70% of users received their airdrop before trading began.

Despite these efforts, user frustration remained high.

Many pointed out the significant price disparity between Bybit and other exchanges like Binance and Bitget, where Notcoin opened at a much higher price. Some users even alleged that the compensation plan was merely a damage control tactic to silence complaints.

While Notcoin experienced volatile trading on other platforms, reaching highs of $0.035, Bybit only saw the token reach a peak of $0.01 – a substantial difference.

One user pointed out discrepancies in the listing prices of Notcoin, noting that Binance and Bitget listed it at $0.01, whereas Bybit started at $0.0007.

Bybit's delay in crediting user accounts and the resulting price disparity significantly impacted user experience and left a mark on the Notcoin launch.

Users Encounter Hurdles with Telegram Wallets

It seems Bybit isn’t the only one facing challenges surrounding NOT tokens. Users of Telegram Wallets are also facing issues transferring their NOT tokens, such as having their accounts blocked or TON tokens not reflecting correctly on their balances.

Telegram Wallet has acknowledged the challenges users faced during the crucial moment of Notcoin listing, expressing regret for the downtime experienced. They recognise the frustration caused and assure users of their commitment to enhancing Wallet's stability.

The team is currently focused on improvements to prevent future disruptions and plans to offer a significant bonus to users who chose Wallet to claim Notcoin once the enhancements are completed.

Notcoin Tokenomics on Binance Launchpool

Notcoin (NOT) is taking an unconventional approach to token distribution. Unlike many projects that implement vesting schedules to control the flow of tokens into the market, Notcoin will release its entire supply of 102,719,221,714 tokens on day one.

It's important to clarify that this doesn't necessarily mean all tokens will be available for immediate trading. A significant portion, 78%, is allocated to miners, and these may not be immediately claimed.

Here's a breakdown of Notcoin's token distribution:

◦ Binance Launchpool (3%):

Users can stake their BNB or FDUSD on Binance Launchpool to earn NOT tokens over a fixed period. This provides an opportunity to acquire NOT before it hits the open market.

◦ Miners (78%):

A large portion of the token supply is allocated to miners who participated in Notcoin's tap-to-earn mining mechanic. These miners may choose to hold or sell their earned tokens, impacting the initial circulation and price.

◦ Ecosystem Fund (9%):

This reserve is set aside to support the growth and development of the Notcoin ecosystem. Funds can be used for various initiatives, such as marketing, partnerships, and project development.

◦ Community Incentives (5%):

A portion of the tokens is dedicated to rewarding and engaging the Notcoin community. This could involve airdrops, contests, or other programs that incentivise user participation.

◦ Development (5%):

Funds allocated for development will be used to build and improve the Notcoin platform and its functionalities.

While Notcoin boasts a pre-launch price of $0.01, resulting in a theoretical market capitalization of $1 billion, analysts predict a more realistic market cap to fall between $100 million and $300 million. This translates to a potential trading range of $0.001 to $0.003 per token.

Prior to the launch, Binance had decided to remove the NOT/BTC trading pair, which was initially scheduled for listing.

Another Tapping Game on Telegram Similar to Notcoin

TapSwap is a new project built on the Solana blockchain that has gained traction recently. Similar to Notcoin, a popular Telegram-based "tapping app", TapSwap allows users to earn cryptocurrency by tapping on their screens.

How Does TapSwap Work?

TapSwap operates through a Telegram bot. Users can access the bot by following a link and clicking on the "Start" button. This brings them to the main game page where they can start "tapping" to accumulate "Taps" tokens. These tokens are essentially points that will be convertible to the actual cryptocurrency, $TAPS, at a later date.

Source: monitalk.ng

Similarities to Notcoin

Like Notcoin, TapSwap offers a gamified approach to earning crypto. Users accumulate points by tapping on their screens, and there are opportunities to increase earnings through tasks and referrals. Both projects are built on the idea of rewarding users for their time and engagement.

Source: monitalk.ng

Latecomers who missed out on the Notcoin craze are now seizing the opportunity presented by TapSwap to earn rewards through a similar crypto-earning approach.

Is TapSwap Legit?

The legitimacy of TapSwap is yet to be determined. The project is still in its early stages, and there is limited information available about the development team behind it.

This lack of transparency raises some concerns. Additionally, the low earning rate per tap and the requirement for upgrades to earn more make the project seem somewhat tedious.

At present, TapSwap's X account, marked by substantial activity and considerable engagement, commands an impressive 1.7 million followers, closely trailing Notcoin's 1.8 million follower count.

TapSwap vs Notcoin: A Copycat?

Some believe TapSwap to be a copycat of Notcoin.

Both projects share a similar structure and functionality. However, TapSwap does differentiate itself by having a clear roadmap for the future.

They have announced the launch of a "Taps Pool" on 30 May 2024, which will allow users to convert their accumulated points into $TAPS tokens.

Should You Join TapSwap?

Just like Notcoin faced scepticism in its early days, TapSwap is currently navigating a similar landscape. Notcoin gained credibility through its association with the TON network, providing some assurance to investors.

In contrast, TapSwap's ambiguous team structure and modest rewards raise concerns about its legitimacy. The uncertainty surrounding TapSwap's future calls for a cautious approach.

Whether one chooses to engage with TapSwap depends on their risk appetite and expectations.

A Reflection of the Gaming Token Market

Notcoin's rise and fall highlight the volatility inherent in the gaming token market, where hype can drive prices up quickly but short-term motivations can lead to equally rapid declines.

The large airdrop and the lack of a vesting schedule for miners contributed to the initial sell-off.

While TapSwap, another Telegram-based tapping game, has emerged to capitalise on Notcoin's popularity, its long-term viability remains to be seen.

With more established gaming tokens also underperforming in 2024, the future of this sector remains uncertain.

Investors interested in gaming tokens should carefully consider the underlying projects and their long-term goals before investing.