Introduction
The Web3 space is witnessing an evolving trend towards consumer applications, reminiscent of the progression seen in the Web2 era. Just as the information age (1990-2003) laid the groundwork for global internet infrastructure, paving the way for popular Web2 consumer applications like Twitter and Facebook from 2004 onwards, Web3 is now transitioning from its infrastructure-heavy phase to a more user-centric landscape.
Web3 consumer products are rapidly approaching parity with their Web2 counterparts in terms of speed, cost, and user experience. As data transmission speed increases and costs decrease, these applications are beginning to offer seamless user experiences comparable to those in Web2. Smooth signup processes, fast transactions, and bridgeless experiences are becoming the norm, making Web3 applications increasingly accessible to mainstream users.
This article will explore several intriguing consumer products that have emerged since early 2023, showcasing the diversity and innovation in the Web3 space. From the social trading phenomenon of Friend.tech to the meme-driven craze on Solana, and the mini-apps ecosystem on the TON blockchain, we'll examine how these platforms are pushing the boundaries of what's possible in decentralized consumer applications.
SocialFi
SocialFi, or Social Finance, blends social media with blockchain-based financial tools. In SocialFi platforms, users can earn cryptocurrency or tokens by engaging in social activities like creating content, interacting with others, or building communities. These platforms often tokenize social interactions, allowing users to own, trade, and monetize their digital identities, reputation, or content.
By integrating decentralized social networks with financial incentives, SocialFi aims to empower users with ownership over their data, moving away from traditional ad-based social media models. It also enables creators and communities to generate direct income without relying on third-party intermediaries.
Friend.tech
Friend.tech, a SocialFi platform that allows users to monetize social connections and interactions through tokenized “shares” in user accounts, experienced significant growth in the past year. Launched in August 2023, its total value locked (TVL) surged to over $50 million at its peak, reflecting strong user interest. Revenue generation was substantial, with the platform earning over 25K ETH ($64M at today’s ETH price) through transaction fees and trading activities at its height. Daily active users (DAUs) peaked at around 150,000 during its most active periods, demonstrating considerable engagement, though this number fluctuated throughout the year as market conditions and user sentiment evolved.
Despite its initial buzz, Friend.tech experienced a significant decline in Total Value Locked (TVL) during Q1 2024. The platform's daily active users (DAUs) have dwindled to fewer than 100 following the launch of the $FRIEND token. While Friend.tech garnered substantial attention during last year's bear market with its innovative model of monetizing connections and employing bonding curves for automated liquidity, it ultimately failed to retain its user base. Recently, the creators of Friend.tech announced that they would be locking the code, effectively putting the project into autopilot mode.
In our view, the platform's struggle to maintain engagement can be attributed to three primary factors that can both drive and limit consumer behavior in this space:
- Access to valuable information
- Potential for profit
- Opportunities for status and self-expression
However, each of these motivators proved unsustainable for Friend.tech:
- Valuable information is typically better suited to subscription models, which provide ongoing incentives for content creators.
- While bonding curves initially offered profit potential for early adopters, their appeal diminished as more users joined the platform.
- Digital assets currently lack the widespread social recognition enjoyed by traditional luxury goods, limiting their effectiveness as status symbols.
In the future, there may be sufficient valuable information and public recognition to support high-value key purchases on platforms like Friend.tech. However, at present, the ecosystem appears to function primarily as a speculative game. And when the entire platform is built on top of financial speculation without rich social interaction underpinning the experience, users will always walk away when the returns dry up;s such systems tend to collapse abruptly when the majority of participants incur financial losses.
Meme Tokens
Meme tokens have taken the cryptocurrency market by storm in 2023 and 2024. They can be viewed as a new form of digital consumer product. Like traditional consumer goods, they are purchased for personal use and provide value to their owners. While they lack tangible utility, meme tokens satisfy modern needs such as speculation, social belonging and entertainment. They allow participation in online communities and engagement with internet culture, similar to how collectible items function in the physical world.
A closer look at Binance's listings since mid-2023 reveals a significant trend: meme tokens account for 18% of all new listings, with 9 out of 50 tokens falling into this category. This trend underscores the growing prominence of meme-based cryptocurrencies in the broader market.
Analyzing the performance of these tokens yields interesting insights. Comparing their current Fully Diluted Valuation (FDV) to their FDV at the time of listing shows that almost all of these meme tokens have experienced net gains. This performance suggests a sustained interest from investors and traders in this niche market segment.
Analysis of token performance across various categories reveals a striking trend: meme tokens are outperforming their counterparts in infrastructure and DeFi sectors. According to data compiled by COIN98 (with FDV figures as of August 6th), standout meme tokens such as $WIF, $BOME, and $NOT have demonstrated superior performance metrics compared to nearly all tokens in other categories.
Listing meme tokens with large holder counts has become a strategic move for exchanges to acquire new users, a trend that has evolved from Ethereum to Bitcoin, then Solana, and now TON. TON's integration with Telegram gives it a significant edge, offering access to a vast user base that dwarfs other blockchain ecosystems. Analysis of holder counts reveals that TON-based meme tokens consistently outperform their counterparts on other blockchains in this metric.
This disparity in holder counts makes TON meme tokens particularly attractive to exchanges, as they offer potential for rapid user acquisition and increased trading volume. The trend highlights the growing importance of social media integration and user-friendly interfaces in driving blockchain adoption. As a result, we believe TON-based meme tokens are likely to remain favored by exchanges in the near future, leveraging Telegram's extensive user base to fuel growth in the cryptocurrency space.
Pump.fun
Speaking of meme tokens, Pump.fun capitalized on the memecoin craze with its launch on Solana in early March, a time when meme sentiment was at its peak, especially within the Solana community. The platform offered users the ability to launch their own meme token with just one click. As of late August 2024, Pump.fun accounted for approximately 50% of all transactions on Solana and had generated revenue of around 650,000 SOL (equivalent to roughly $100 million USD).
Since not all meme tokens can be listed on major exchanges until they achieve a certain volume and number of holders, Pump.fun fills the gap between token generation and maturity. This scenario feels reminiscent of the 2020 DeFi food token craze on Uniswap, which eventually led to listings on Binance. However, this time around, coding skills are not necessary; hypeis the primary currency.
For creators, Pump.fun offers an opportunity for anyone to become a token creator, monetize their ideas, and gain attention. This accessibility has attracted even celebrities, such as Iggy Azalea with her $MOTHER token. The platform democratizes token creation, allowing individuals from various backgrounds to participate in the cryptocurrency space without the traditional barriers of technical knowledge or significant capital.
For traders and retail investors, Pump.fun offers a chance to enter early and potentially profit in a very short period. However, Pump.fun is not a guaranteed playground of profits. If you look at the underlying return numbers, the probability of making a profit is low, as a recent tweet made by @Adam_Tehc, a Pump.fun leaderboard curator, revealed:
However, when comparing the winning chances with slot machines, Pump.fun appears to offer better odds. According to Investopedia, the winning chance of slot machines ranges from 0.02% to nearly 0%. In contrast, if 3% of Pump.fun users make over $1,000, does this suggest it's more enjoyable and potentially rewarding than slot machines?
In our opinion, even a small percentage gain over the odds of success at casinos is significant to attract more users and liquidity. This higher success rate looks promising for Pump.fun's ability to sustain and grow its gamble type user base. By maintaining this winning ratio, simplifying the betting process, and incorporating social features to enhance the experience (such as chat and live streaming), Pump.fun seems well-positioned for continued growth.
Telegram Meme/Mini Games
In the TON ecosystem, a novel "tap-to-earn" mechanism has been introduced in mini apps, proving extremely effective in acquiring users on Telegram. This approach allows users to earn tokens by completing simple tasks, often requiring just one or a few clicks, or sometimes no clicks at all. These tasks are strategically designed with viral factors to acquire more users and boost the app's marketing efforts. Examples include cross-joining Telegram channels for airdrops (increasing user base), inviting friends to earn more tokens, and sharing posts on Twitter (enhancing marketing reach).
Notcoin (NOT) pioneered this trend, launching in November 2023 as a closed beta within Telegram. Initially marketed as a memecoin with no clear purpose beyond being a viral sensation, it quickly attracted 5 million players after its official launch in January. This rapid growth demonstrated the power of the tap-to-earn model combined with Telegram's vast user base.
Further exemplifying this trend is Hamster Combat, another tap-to-earn game that has shown an even stronger user acquisition and social media following than Notcoin. This succession of successful projects highlights the potential of the tap-to-earn model within the Telegram ecosystem, particularly when combined with meme-inspired branding and viral marketing techniques. Its monthly active users have just passed 80 million, as shown in the Telegram channel.
Dogs was then introduced, inspired by Telegram co-founder Pavel Durov's iconic dog drawing, as another meme coin tailored for Telegram users. By partnering with Notcoin and leveraging its established social channels and the viral tap-to-earn mechanism, Dogs achieved remarkable growth, amassing 40 million users in less than two months. This exponential growth underscores the effectiveness of combining social media integration with simple, rewarding user interactions.
Catizen has also quickly risen to prominence as a leading Telegram-based gaming platform, offering a variety of cat-themed mini-games on the TON blockchain. The platform's success, reminiscent of WeChat's mini-game ecosystem in China, has caught the attention of major Web3 gaming entities and investors. In its first few months, Catizen amassed an impressive user base of 27 million players, including 1.5 million engaging with blockchain features, and successfully converted half a million users to paying customers.
Beyond meme coins and gaming projects, Blum stands out as a noteworthy venture in the TON ecosystem, focusing on quest-based models and trading elements. The platform has experienced significant user growth through strategic quest partnerships and marketing collaborations. As the TON ecosystem expands with new token launches, Blum plans to introduce trading bot features, enabling Telegram users to track and trade assets with ease. This development aims to streamline the trading experience for users within the Telegram interface, potentially attracting a broader audience to the TON blockchain.
The tables below summarize the user metrics and social media following status for these major apps as of September 16, 2024.
Looking ahead, mini apps present a significant opportunity as the gateway between Telegram users and the TON blockchain. Many draw parallels to WeChat's ecosystem, which, as of June 2023, boasted nearly 1.4 billion users with over 400 million monthly active users engaging in mini games. Competing in the mini game category thus appears to be a strategic move.
When comparing other popular categories on WeChat, such as daily services (e.g., Didi, China's Uber equivalent), mobile shopping (JD, akin to Amazon), and financial services (Alipay for payments), it's evident that Telegram still lacks real-world payment features crucial for enabling such services. However, a more apt comparison lies in crypto-native use cases, particularly trading bots.
We've witnessed the growth of user-friendly trading bots in other ecosystems, such as Photon and Bonk Bot on Solana, and Banana Gun on Ethereum. As more tokens and meme coins launch on TON, there's a prime opportunity for projects to take the lead in this category. The introduction of sophisticated yet accessible trading bots could significantly enhance the TON ecosystem's appeal and functionality for both novice and experienced crypto enthusiasts.
Summary
We have identified several categories of Web3 consumer applications with substantial revenue and user bases. While some, like Friend.tech, were short-lived, they introduced innovative mechanisms that others have adapted. For instance, Pump.fun has adopted the bonding curve mechanism for viral growth. It will be interesting to observe whether users can be retained over time through engaging trading/betting experiences, or if these platforms will face a fate similar to Friend.tech, where traders' diminishing profit opportunities led to an exodus after only one year.
TON memes and mini-apps have benefited from leveraging Telegram's extensive user base. By implementing easy onboarding and "tap-to-earn" mechanisms to bootstrap users, these applications have gained initial traction. However, the challenge lies in retaining users by providing sustainable value, whether through maintaining a vibrant meme community, offering entertaining games, or providing convenient trading experiences.
Other consumer applications, including social networks, payment systems, Decentralized Physical Infrastructure Networks (DePIN), and AI agents, require a longer-term strategy rather than relying on short-term viral growth. As infrastructure improvements make data transmission cheaper and faster, these categories are poised for strong growth in the near future, supported by revenue-generating models.
Legal Disclosure: This document, and the information contained herein, has been provided to you by Hyperedge Technology LP and its affiliates (“Symbolic Capital”) solely for informational purposes. This document may not be reproduced or redistributed in whole or in part, in any format, without the express written approval of Symbolic Capital. Neither the information, nor any opinion contained in this document, constitutes an offer to buy or sell, or a solicitation of an offer to buy or sell, any advisory services, securities, futures, options or other financial instruments or to participate in any advisory services or trading strategy. Nothing contained in this document constitutes investment, legal or tax advice or is an endorsement of any of the digital assets or companies mentioned herein. You should make your own investigations and evaluations of the information herein. Any decisions based on information contained in this document are the sole responsibility of the reader. Certain statements in this document reflect Symbolic Capital’s views, estimates, opinions or predictions (which may be based on proprietary models and assumptions, including, in particular, Symbolic Capital’s views on the current and future market for certain digital assets), and there is no guarantee that these views, estimates, opinions or predictions are currently accurate or that they will be ultimately realized. To the extent these assumptions or models are not correct or circumstances change, the actual performance may vary substantially from, and be less than, the estimates included herein. None of Symbolic Capital nor any of its affiliates, shareholders, partners, members, directors, officers, management, employees or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any of the information or any other information (whether communicated in written or oral form) transmitted or made available to you. Each of the aforementioned parties expressly disclaims any and all liability relating to or resulting from the use of this information. Certain information contained herein (including financial information) has been obtained from published and non-published sources. Such information has not been independently verified by Symbolic Capital and, Symbolic Capital, does not assume responsibility for the accuracy of such information. Affiliates of Symbolic Capital may have owned or may own investments in some of the digital assets and protocols discussed in this document. Except where otherwise indicated, the information in this document is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. This document provides links to other websites that we think might be of interest to you. Please note that when you click on one of these links, you may be moving to a provider’s website that is not associated with Symbolic Capital. These linked sites and their providers are not controlled by us, and we are not responsible for the contents or the proper operation of any linked site. The inclusion of any link does not imply our endorsement or our adoption of the statements therein. We encourage you to read the terms of use and privacy statements of these linked sites as their policies may differ from ours. The foregoing does not constitute a “research report” as defined by FINRA Rule 2241 or a “debt research report” as defined by FINRA Rule 2242 and was not prepared by Symbolic Capital Partners LLC. For all inquiries, please email info@symbolic.capital. © Copyright Hyperedge Capital LP 2024. All rights reserved.
Introduction
The Web3 space is witnessing an evolving trend towards consumer applications, reminiscent of the progression seen in the Web2 era. Just as the information age (1990-2003) laid the groundwork for global internet infrastructure, paving the way for popular Web2 consumer applications like Twitter and Facebook from 2004 onwards, Web3 is now transitioning from its infrastructure-heavy phase to a more user-centric landscape.
Web3 consumer products are rapidly approaching parity with their Web2 counterparts in terms of speed, cost, and user experience. As data transmission speed increases and costs decrease, these applications are beginning to offer seamless user experiences comparable to those in Web2. Smooth signup processes, fast transactions, and bridgeless experiences are becoming the norm, making Web3 applications increasingly accessible to mainstream users.
This article will explore several intriguing consumer products that have emerged since early 2023, showcasing the diversity and innovation in the Web3 space. From the social trading phenomenon of Friend.tech to the meme-driven craze on Solana, and the mini-apps ecosystem on the TON blockchain, we'll examine how these platforms are pushing the boundaries of what's possible in decentralized consumer applications.
SocialFi
SocialFi, or Social Finance, blends social media with blockchain-based financial tools. In SocialFi platforms, users can earn cryptocurrency or tokens by engaging in social activities like creating content, interacting with others, or building communities. These platforms often tokenize social interactions, allowing users to own, trade, and monetize their digital identities, reputation, or content.
By integrating decentralized social networks with financial incentives, SocialFi aims to empower users with ownership over their data, moving away from traditional ad-based social media models. It also enables creators and communities to generate direct income without relying on third-party intermediaries.
Friend.tech
Friend.tech, a SocialFi platform that allows users to monetize social connections and interactions through tokenized “shares” in user accounts, experienced significant growth in the past year. Launched in August 2023, its total value locked (TVL) surged to over $50 million at its peak, reflecting strong user interest. Revenue generation was substantial, with the platform earning over 25K ETH ($64M at today’s ETH price) through transaction fees and trading activities at its height. Daily active users (DAUs) peaked at around 150,000 during its most active periods, demonstrating considerable engagement, though this number fluctuated throughout the year as market conditions and user sentiment evolved.
Despite its initial buzz, Friend.tech experienced a significant decline in Total Value Locked (TVL) during Q1 2024. The platform's daily active users (DAUs) have dwindled to fewer than 100 following the launch of the $FRIEND token. While Friend.tech garnered substantial attention during last year's bear market with its innovative model of monetizing connections and employing bonding curves for automated liquidity, it ultimately failed to retain its user base. Recently, the creators of Friend.tech announced that they would be locking the code, effectively putting the project into autopilot mode.
In our view, the platform's struggle to maintain engagement can be attributed to three primary factors that can both drive and limit consumer behavior in this space:
- Access to valuable information
- Potential for profit
- Opportunities for status and self-expression
However, each of these motivators proved unsustainable for Friend.tech:
- Valuable information is typically better suited to subscription models, which provide ongoing incentives for content creators.
- While bonding curves initially offered profit potential for early adopters, their appeal diminished as more users joined the platform.
- Digital assets currently lack the widespread social recognition enjoyed by traditional luxury goods, limiting their effectiveness as status symbols.
In the future, there may be sufficient valuable information and public recognition to support high-value key purchases on platforms like Friend.tech. However, at present, the ecosystem appears to function primarily as a speculative game. And when the entire platform is built on top of financial speculation without rich social interaction underpinning the experience, users will always walk away when the returns dry up;s such systems tend to collapse abruptly when the majority of participants incur financial losses.
Meme Tokens
Meme tokens have taken the cryptocurrency market by storm in 2023 and 2024. They can be viewed as a new form of digital consumer product. Like traditional consumer goods, they are purchased for personal use and provide value to their owners. While they lack tangible utility, meme tokens satisfy modern needs such as speculation, social belonging and entertainment. They allow participation in online communities and engagement with internet culture, similar to how collectible items function in the physical world.
A closer look at Binance's listings since mid-2023 reveals a significant trend: meme tokens account for 18% of all new listings, with 9 out of 50 tokens falling into this category. This trend underscores the growing prominence of meme-based cryptocurrencies in the broader market.
Analyzing the performance of these tokens yields interesting insights. Comparing their current Fully Diluted Valuation (FDV) to their FDV at the time of listing shows that almost all of these meme tokens have experienced net gains. This performance suggests a sustained interest from investors and traders in this niche market segment.
Analysis of token performance across various categories reveals a striking trend: meme tokens are outperforming their counterparts in infrastructure and DeFi sectors. According to data compiled by COIN98 (with FDV figures as of August 6th), standout meme tokens such as $WIF, $BOME, and $NOT have demonstrated superior performance metrics compared to nearly all tokens in other categories.
Listing meme tokens with large holder counts has become a strategic move for exchanges to acquire new users, a trend that has evolved from Ethereum to Bitcoin, then Solana, and now TON. TON's integration with Telegram gives it a significant edge, offering access to a vast user base that dwarfs other blockchain ecosystems. Analysis of holder counts reveals that TON-based meme tokens consistently outperform their counterparts on other blockchains in this metric.
This disparity in holder counts makes TON meme tokens particularly attractive to exchanges, as they offer potential for rapid user acquisition and increased trading volume. The trend highlights the growing importance of social media integration and user-friendly interfaces in driving blockchain adoption. As a result, we believe TON-based meme tokens are likely to remain favored by exchanges in the near future, leveraging Telegram's extensive user base to fuel growth in the cryptocurrency space.
Pump.fun
Speaking of meme tokens, Pump.fun capitalized on the memecoin craze with its launch on Solana in early March, a time when meme sentiment was at its peak, especially within the Solana community. The platform offered users the ability to launch their own meme token with just one click. As of late August 2024, Pump.fun accounted for approximately 50% of all transactions on Solana and had generated revenue of around 650,000 SOL (equivalent to roughly $100 million USD).
Since not all meme tokens can be listed on major exchanges until they achieve a certain volume and number of holders, Pump.fun fills the gap between token generation and maturity. This scenario feels reminiscent of the 2020 DeFi food token craze on Uniswap, which eventually led to listings on Binance. However, this time around, coding skills are not necessary; hypeis the primary currency.
For creators, Pump.fun offers an opportunity for anyone to become a token creator, monetize their ideas, and gain attention. This accessibility has attracted even celebrities, such as Iggy Azalea with her $MOTHER token. The platform democratizes token creation, allowing individuals from various backgrounds to participate in the cryptocurrency space without the traditional barriers of technical knowledge or significant capital.
For traders and retail investors, Pump.fun offers a chance to enter early and potentially profit in a very short period. However, Pump.fun is not a guaranteed playground of profits. If you look at the underlying return numbers, the probability of making a profit is low, as a recent tweet made by @Adam_Tehc, a Pump.fun leaderboard curator, revealed:
However, when comparing the winning chances with slot machines, Pump.fun appears to offer better odds. According to Investopedia, the winning chance of slot machines ranges from 0.02% to nearly 0%. In contrast, if 3% of Pump.fun users make over $1,000, does this suggest it's more enjoyable and potentially rewarding than slot machines?
In our opinion, even a small percentage gain over the odds of success at casinos is significant to attract more users and liquidity. This higher success rate looks promising for Pump.fun's ability to sustain and grow its gamble type user base. By maintaining this winning ratio, simplifying the betting process, and incorporating social features to enhance the experience (such as chat and live streaming), Pump.fun seems well-positioned for continued growth.
Telegram Meme/Mini Games
In the TON ecosystem, a novel "tap-to-earn" mechanism has been introduced in mini apps, proving extremely effective in acquiring users on Telegram. This approach allows users to earn tokens by completing simple tasks, often requiring just one or a few clicks, or sometimes no clicks at all. These tasks are strategically designed with viral factors to acquire more users and boost the app's marketing efforts. Examples include cross-joining Telegram channels for airdrops (increasing user base), inviting friends to earn more tokens, and sharing posts on Twitter (enhancing marketing reach).
Notcoin (NOT) pioneered this trend, launching in November 2023 as a closed beta within Telegram. Initially marketed as a memecoin with no clear purpose beyond being a viral sensation, it quickly attracted 5 million players after its official launch in January. This rapid growth demonstrated the power of the tap-to-earn model combined with Telegram's vast user base.
Further exemplifying this trend is Hamster Combat, another tap-to-earn game that has shown an even stronger user acquisition and social media following than Notcoin. This succession of successful projects highlights the potential of the tap-to-earn model within the Telegram ecosystem, particularly when combined with meme-inspired branding and viral marketing techniques. Its monthly active users have just passed 80 million, as shown in the Telegram channel.
Dogs was then introduced, inspired by Telegram co-founder Pavel Durov's iconic dog drawing, as another meme coin tailored for Telegram users. By partnering with Notcoin and leveraging its established social channels and the viral tap-to-earn mechanism, Dogs achieved remarkable growth, amassing 40 million users in less than two months. This exponential growth underscores the effectiveness of combining social media integration with simple, rewarding user interactions.
Catizen has also quickly risen to prominence as a leading Telegram-based gaming platform, offering a variety of cat-themed mini-games on the TON blockchain. The platform's success, reminiscent of WeChat's mini-game ecosystem in China, has caught the attention of major Web3 gaming entities and investors. In its first few months, Catizen amassed an impressive user base of 27 million players, including 1.5 million engaging with blockchain features, and successfully converted half a million users to paying customers.
Beyond meme coins and gaming projects, Blum stands out as a noteworthy venture in the TON ecosystem, focusing on quest-based models and trading elements. The platform has experienced significant user growth through strategic quest partnerships and marketing collaborations. As the TON ecosystem expands with new token launches, Blum plans to introduce trading bot features, enabling Telegram users to track and trade assets with ease. This development aims to streamline the trading experience for users within the Telegram interface, potentially attracting a broader audience to the TON blockchain.
The tables below summarize the user metrics and social media following status for these major apps as of September 16, 2024.
Looking ahead, mini apps present a significant opportunity as the gateway between Telegram users and the TON blockchain. Many draw parallels to WeChat's ecosystem, which, as of June 2023, boasted nearly 1.4 billion users with over 400 million monthly active users engaging in mini games. Competing in the mini game category thus appears to be a strategic move.
When comparing other popular categories on WeChat, such as daily services (e.g., Didi, China's Uber equivalent), mobile shopping (JD, akin to Amazon), and financial services (Alipay for payments), it's evident that Telegram still lacks real-world payment features crucial for enabling such services. However, a more apt comparison lies in crypto-native use cases, particularly trading bots.
We've witnessed the growth of user-friendly trading bots in other ecosystems, such as Photon and Bonk Bot on Solana, and Banana Gun on Ethereum. As more tokens and meme coins launch on TON, there's a prime opportunity for projects to take the lead in this category. The introduction of sophisticated yet accessible trading bots could significantly enhance the TON ecosystem's appeal and functionality for both novice and experienced crypto enthusiasts.
Summary
We have identified several categories of Web3 consumer applications with substantial revenue and user bases. While some, like Friend.tech, were short-lived, they introduced innovative mechanisms that others have adapted. For instance, Pump.fun has adopted the bonding curve mechanism for viral growth. It will be interesting to observe whether users can be retained over time through engaging trading/betting experiences, or if these platforms will face a fate similar to Friend.tech, where traders' diminishing profit opportunities led to an exodus after only one year.
TON memes and mini-apps have benefited from leveraging Telegram's extensive user base. By implementing easy onboarding and "tap-to-earn" mechanisms to bootstrap users, these applications have gained initial traction. However, the challenge lies in retaining users by providing sustainable value, whether through maintaining a vibrant meme community, offering entertaining games, or providing convenient trading experiences.
Other consumer applications, including social networks, payment systems, Decentralized Physical Infrastructure Networks (DePIN), and AI agents, require a longer-term strategy rather than relying on short-term viral growth. As infrastructure improvements make data transmission cheaper and faster, these categories are poised for strong growth in the near future, supported by revenue-generating models.
Legal Disclosure: This document, and the information contained herein, has been provided to you by Hyperedge Technology LP and its affiliates (“Symbolic Capital”) solely for informational purposes. This document may not be reproduced or redistributed in whole or in part, in any format, without the express written approval of Symbolic Capital. Neither the information, nor any opinion contained in this document, constitutes an offer to buy or sell, or a solicitation of an offer to buy or sell, any advisory services, securities, futures, options or other financial instruments or to participate in any advisory services or trading strategy. Nothing contained in this document constitutes investment, legal or tax advice or is an endorsement of any of the digital assets or companies mentioned herein. You should make your own investigations and evaluations of the information herein. Any decisions based on information contained in this document are the sole responsibility of the reader. Certain statements in this document reflect Symbolic Capital’s views, estimates, opinions or predictions (which may be based on proprietary models and assumptions, including, in particular, Symbolic Capital’s views on the current and future market for certain digital assets), and there is no guarantee that these views, estimates, opinions or predictions are currently accurate or that they will be ultimately realized. To the extent these assumptions or models are not correct or circumstances change, the actual performance may vary substantially from, and be less than, the estimates included herein. None of Symbolic Capital nor any of its affiliates, shareholders, partners, members, directors, officers, management, employees or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any of the information or any other information (whether communicated in written or oral form) transmitted or made available to you. Each of the aforementioned parties expressly disclaims any and all liability relating to or resulting from the use of this information. Certain information contained herein (including financial information) has been obtained from published and non-published sources. Such information has not been independently verified by Symbolic Capital and, Symbolic Capital, does not assume responsibility for the accuracy of such information. Affiliates of Symbolic Capital may have owned or may own investments in some of the digital assets and protocols discussed in this document. Except where otherwise indicated, the information in this document is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. This document provides links to other websites that we think might be of interest to you. Please note that when you click on one of these links, you may be moving to a provider’s website that is not associated with Symbolic Capital. These linked sites and their providers are not controlled by us, and we are not responsible for the contents or the proper operation of any linked site. The inclusion of any link does not imply our endorsement or our adoption of the statements therein. We encourage you to read the terms of use and privacy statements of these linked sites as their policies may differ from ours. The foregoing does not constitute a “research report” as defined by FINRA Rule 2241 or a “debt research report” as defined by FINRA Rule 2242 and was not prepared by Symbolic Capital Partners LLC. For all inquiries, please email info@symbolic.capital. © Copyright Hyperedge Capital LP 2024. All rights reserved.