The tap-to-earn model has gained attention in the crypto world as users flock to projects offering rewards for minimal investment. However, as the industry grows, data reveals that while a few tap-to-earn projects thrive, most struggle to deliver value. Here, we examine nearly 200 tap-to-earn projects to explore the truth.
Key Findings
- On average, a top tap-to-earn project airdrops to 56M users, which is 90x compared to a top DeFi project.
- On average, airdrop value per wallet for top Tap To Earn projects is $24, which is equivalent to 0.1% of the airdrop value per wallet for a top DeFi project.
- 78% of tap-to-earn projects are dangerous.
An Analysis of Tap-to-Earn Projects That Completed Airdrop
Methodology: First, we looked at the top ten DeFi projects with the highest airdrop value in 2024, as well as the four tap-to-earn projects that have already finished airdrop distribution. (Airdrop value equals amount of distributed airdrop tokens multiplied by ATH price).
We then manually collected the number of eligible wallets for each project. From there, we calculate the average airdrop value per wallet.
Four prominent tap-to-earn projects have distributed substantial airdrops, each attracting millions of wallets. However, the per-wallet value of these airdrops is often low, indicating how thinly rewards are spread due to high user participation.
Across the top tap-to-earn projects that completed airdrop distribution, the average number of wallets eligible for airdrops is around 56 million, a figure 90 times higher than the user base for a top DeFi project airdrop. The result is a significantly lower payout per wallet: while top tap-to-earn projects airdrop average only $24 per wallet, this is just 0.1% of what a top DeFi project user would receive.
State of Current Tap-to-Earn Projects
Methodology: To determine whether a project is dangerous, we evaluate four metrics:
- Has the project ever altered its Twitter handle? – We use AlphaQuest’s database, which discovers and tracks new crypto projects on Twitter.
- Does its Telegram bot require malicious access? – We run the bot manually.
- Is its Telegram bot working? – We run the bot manually.
- Does the website have the ability to infect users with viruses? – We use https://sitecheck.sucuri.net/ to determine if a website is at least medium risk.
A risky project is one that fits at least one of the metrics listed above.
A total of 184 tap-to-earn projects were analyzed.
The tap-to-earn landscape is rife with risks
78% of tap-to-earn projects have proven to be dangerous, raising questions about their reliability and user safety. The risks range from malfunctioning bots to privacy violations and security threats, leaving users vulnerable and the potential of these projects in doubt.
Key findings on the risks in tap-to-earn projects include:
- 22% have malfunctional bots – A fifth of these projects suffer from bots that don’t function properly, frustrating users and reducing engagement quality.
- 9% use rebranded Twitter accounts – These rebranded accounts can mislead users about a project’s legitimacy.
- 62% require access to IP addresses – Requiring IP access violates privacy protocols, especially concerning for users who rely on platforms like Telegram.
- 15% have websites that are capable of infecting visitors with viruses – Websites for 15% of tap-to-earn projects can inject malicious code, posing a significant security risk to users’ devices and data.
Despite these concerns, tap-to-earn projects continue to draw in massive numbers.
Collectively, tap-to-earn projects have amassed nearly 507 million users and raised $242 million in funds. This indicates a paradox in the tap-to-earn model: while users are drawn to the allure of “easy” rewards, the majority of projects compromise on safety, creating a market full of both promise and peril.
Conclusion
The tap-to-earn model highlights the evolving intersection of user engagement and crypto rewards, but it also underscores the risks involved. While tap-to-earn projects have succeeded in attracting millions of users, their low airdrop values and high-risk profiles leave much to be desired. As the space grows, a push for more reliable projects with stronger user protections will be essential if the model is to deliver sustainable value.