Most highly hyped Telegram tokens have suffered a harsh reversal, a few weeks after their airdrops and exchange listings.

RabBitcoin (RBTC), the token for the Rocky Rabbit ecosystem, has plunged to $0.0000037, down from its September high of $0.000007. Its market cap has retreated from over $63 million to $47 million. Catizen (CATI), a popular cat-themed game, has crashed from $1.1974 to $0.4, bringing its valuation to $84 million.

Meanwhile, Dogs (DOGS), another popular Telegram cryptocurrency, has dropped from $0.0011 in September to $0.00065.

Other tokens like Hamster Kombat and Notcoin have also struggled, with their sell-offs costing holders billions of dollars. Toncoin (TON), which powers the TON Blockchain, has also entered a deep bear market, falling by over 43% from its highest level this year. 

Telegram gaming hype has faded

Telegram’s tap-to-earn and gaming tokens have disappointed many users who had accumulated millions of coins before the airdrop. Dogs has over 50 million users, while Catizen and Rocky Rabbit have 42 million and 30 million, respectively.

As was reported earlier on Hamster Kombat, CATI, DOGS, and RBTC have dropped due to increased selling by people who accumulated tokens before the airdrop. In most cases, holders of “to-earn” tokens sell after the airdrop to avoid the initial drop.

This is common with most airdrops. For example, the Wormhole token has dropped by over 84% from its listing price, despite its strong utility. ZkSync has also fallen by double digits.

This sell-off is also driven by the broader sentiment in the crypto market. The crypto fear and greed index has moved to the fear zone of 37, as most coins have entered a bear market. Bitcoin has dropped to $60,600, while the total market cap of all cryptocurrencies slipped to $2.1 trillion.

Additionally, these Telegram tokens face the challenge of keeping users engaged as their reward tokens continue to decline.

This is a major reason why most play-to-earn networks that gained popularity in 2021 have lost traction. Data from DappRadar shows that Notcoin had 137 unique active wallets in the last 30 days.

While Catizen had 1.42 million unique active wallets in the last 30 days, the number has significantly decreased in recent days. The same trend has occurred across other games like Catizen and Hamster Kombat.