Initially launched by Telegram, community-led blockchain TON has quickly grown into a vibrant ecosystem.
Catizen, a TON-powered crypto game that went viral, is now evolving into a comprehensive Web3 application center.
In this interview, Tim Wong, chairman of Catizen Foundation, discusses the transformation process, Catizen’s new positioning as a game publishing platform in the Telegram ecosystem and upcoming features.
Cointelegraph: How do you see the growth of Telegram and the TON ecosystem as a major driver in the adoption of Web3?
Tim Wong: Telegram’s CEO Pavel Durov announced on July 22 that Telegram reached 950 million monthly active users. In the Web3 world, no other platform has a natural traffic pool entry like Telegram.
As a builder of the TON ecosystem, designing a project that can continuously convert, retain and achieve viral growth is key to user conversion. In this regard, I am pleased that Catizen’s first phase has been very successful.
CT: Catizen started as a single game, but now we see it’s evolving into a game publishing platform. What inspired you to zoom out to become an ecosystem?
TW: Rather than just a game, we defined Catizen.ai as a Web3 content hub from the very beginning. As early as the product design stage, we positioned the CATI project as a long-term operational initiative.
Becoming a game publishing platform is also a phase in our mid to long-term plans. We have evolved from a single game to a Mini App center and are now transitioning into a consumer-grade Web3 application platform. In the future, we will continue to focus on enhancing the depth and breadth of applications.
CT: What are the key steps of becoming a Web3-friendly game publishing platform?
TW: We made arrangements in four areas to support this evolvement. We developed our own HTML5 game engine and SDK, providing one-stop services for global game developers. Catizen launched its game center on Aug. 22, 2024, and received over 100 game applications. After a rigorous review process, 12 products are now officially live.
The first play-to-earn mini-game, Bombie, launched its closed beta in August. We’ve attracted over 4.9 million users, achieved a 5% pay-to-play rate and surpassed $4.9 million in revenue. Within one month, Catizen successfully transitioned from a single mini-game to a gaming platform.
We also developed a unified user account system, beginning with the rebate center, where players can earn 10% of recharge by inviting friends. Additionally, we have introduced the Airdrop pass, allowing players to earn points by completing tasks and participating in quarterly CATI airdrops. Users can participate in the free airdrop pass for rewards or purchase premiums for additional rewards.
Source: Catizen
Following TGE, our staking center, Meow Earn, and Launchpool will go into full operation. Meow Earn’s first phase attracted 1.15 million participants, with 14 million CATI staked. In October, we plan to launch the second phase of the Launchpool, enabling users to stake CATI to mine tokens from other projects.
In Q4, we aim to roll out more gaming platform features, including a VIP membership system for special packages and discounts and a gamified staking center to gain benefits in other games.
Catizen aims to bring high-quality content from WeChat Mini Games to Telegram and Web3. Through our game engine and SDK, we will reduce barriers for WeChat developers entering the Telegram ecosystem, enriching our platform.
CT: How will this transition impact the unit economics and Catizen’s business model?
TW: Our vision is to build Catizen into a cat-themed IP and develop it into a consumer-grade Web3 application platform.
The first step was to release a user-friendly game to educate users on Web3 wallets and onchain interactions. Thus, Catizen was born on March 18, 2024.
On Aug. 22, we took the first step toward platformization by launching the App Center. Before launch, 95% of Catizen’s revenue came from in-app purchases (IAP). After release, we leveraged Catizen’s game engine and SDK to attract WeChat mini-games to Telegram at minimal cost.
Our revenue streams became more diversified to include IAP, IAA and hyper-casual games, while our advertising business began to take shape. This shift enriched Catizen’s ecosystem and strengthened our ability to generate sustainable revenue and manage risks.
Source: Catizen
We aim to use the airdrop effect of CATI to attract and convert new users into Web3 consumers. I believe just as WeChat is dominant today, Telegram will be tomorrow’s leading platform. With Apple Pay and Google Pay integrated into Telegram Mini Apps, the ecosystem could generate $3 billion in revenue by 2026. By then, Catizen aims to capture over 10% of the mini-game market on Telegram, becoming the leader in this space.
After the TGE, 50% of App Center revenue will be allocated to buyback and burn CATI tokens, implementing a deflationary token model. The goal is to burn 50% of the total supply over time. CATI holders benefit from the reduced supply. For compliance reasons, we cannot directly link Web2 cash flows to CATI.
CT: Web3 community has embraced Catizen as a viral game. Can you share some numbers about key milestones, and what do you think made Catizen go viral?
TW: Officially launched on March 18, 2024, we attracted over 41 million users within just six months, reached over 20 million monthly active users and 8 million daily active users at peak time. Our paying user count exceeded 1.15 million and active onchain users surpassed 2.5 million, with total revenue reaching over $30 million. The key to success lies in the exposure from the Hong Kong TON conference, Pavel Durov’s endorsement and rapid expansion into the Japanese, Russian, Turkish and Vietnamese markets.
CT: Do you have any upcoming launches or events planned for the Web3 community?
TW: In addition to the currently incubating projects, Bombie (GAMEFI) and Vanilla Finance (trading application), we will launch two new mini-games with airdrop mechanisms in Q4. These include a highly monetized game called “Lucky Galaxy” and an advertising monetization game called “Memeblock.” The Catizen ecosystem will also participate in incubating a Telegram short drama platform, transferring more high-quality content from WeChat and TikTok to Telegram.
CT: Looking ahead, what role do you think the Catizen ecosystem will play in the future of Web3?
TW: Our ultimate goal for 2024 is to establish Catizen as a consumer-grade platform combining gaming, short dramas, trading and artificial intelligence, laying a solid foundation for launching an e-commerce platform in 2025. Our team has a proven track record in the pan-entertainment sector, with extensive Web2 content reserves, including high-quality games and short dramas, which will be integrated into Catizen. This is the core of our platform’s in-depth expansion strategy. We are also broadening Catizen’s scope by integrating high-quality Web2 and Web3 applications, including DeFi and artificial intelligence, to achieve maximum depth and breadth for the platform.
We are considering to expand beyond Telegram to platforms like LINE, KakaoTalk etc. Integrating these platforms will enable us to access global consumer markets, driving new streams of user traffic.
Web2 user acquisition relies heavily on traditional advertising and premium content, but we have already evolved from a single product into an app center. We successfully incubated our next hit game, Bombie, and mini-app Vanilla Finance, which will drive new users to our ecosystem. Additionally, we are preparing to launch two airdrop-based mini-games: Lucky Galaxy and Memeblock.
In our app center, we will introduce a loyalty-based membership system and enhance the staking center to maximize CATI’s utility.
Our business model and tokenomics revolve around three core factors influencing token prices: supply, demand and value capture. We carefully considered these aspects before launching Catizen, and now we are bringing our original plan to life.
The key to sustainable growth lies in nurturing a strong community, continuously attracting high-quality projects and creating wealth opportunities through Web3 token mechanisms. While Catizen currently leads in the first half, following TGE, we need to work harder to deliver new premium content and assets. By leveraging traffic from Web2 super apps, we aim to build a new Web3 entertainment empire. Through Web3 governance, we will channel platform revenues to empower CATI and the entire ecosystem.
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