Tapswap’s price wavered on Monday after the highly popular tap-to-earn platform launched its airdrop or token generation event.
The Tapswap (TAPS) token was trading at $0.07058, slightly above its opening price. According to CoinMarketCap, its market cap stood at $34 million, making it much smaller than other tap-to-earn tokens like Hamster Kombat (HMSTR) and Notcoin.
In a long X thread, the developers noted that 5% of the tokens were allocated to strategic investors, while the community received a 40% share. Another 20% of the tokens were set aside for community rewards, with a similar amount designated for its treasury. The team received 10% of the allocation, with a cliff unlock period ranging from 12 to 36 months.
Tapswap’s price likely wavered because it was only available on Bitget and STON.fi, the largest decentralized exchange on the TON blockchain. No tier-1 exchanges like Binance or Coinbase have announced plans to list the TAPS token.
The developers had initially planned to launch on the more popular BNB Chain which has millions of users and some of the top decentralized exchanges, including PancakeSwap, Uniswap, and Thena. However, that plan failed after Telegram insisted that all games within its ecosystem must list on the TON blockchain.
Tapswap aims to become the largest gaming platform on Telegram. In addition to its tap-to-earn game, the developers are working on a skills-based game that will provide additional utility for the token. They hope that its ten million weekly users will transition to the new skills game.
Tapswap price faces major challenges ahead
Tapswap faces significant challenges. Most of its top competitors, including Hamster Kombat and Notcoin (NOT) have seen their token values plummet following their airdrops. They have all declined by over 80% from their all-time highs as holders sold off their tokens and new buyers remained hesitant.
Hamster Kombat, in particular, was one of the biggest disappointments in the tap-to-earn industry. It amassed over 300 million users and broke records for YouTube subscribers before its token collapsed.
Tapswap’s challenges mirror those faced by other “to-earn” tokens, many of which have struggled after their initial launch. Move-to-earn tokens like StepN, Sweatcoin, and Step App, as well as play-to-earn coins like Illuvium, Big Time, and Axie Infinity, have all seen their values crash post-launch.
Similarly, several recently airdropped tokens, including those with utility, such as Grass, Wormhole, ZkSync, and Berachain, have also declined significantly.
Tapswap’s airdrop came two days ahead of the much-anticipated Pi Network mainnet launch. Pi is also a tap-to-earn coin where users are rewarded for mining the tokens through the app.
