Crypto
person playing Hamster Kombat
(Aref Taherkenareh/Getty Images))
Garbage Day

How a crypto game called Hamster Kombat growth hacked the entire internet

The clicker game now has some of the fastest-growing channels in the world.

Ryan Broderick, Adam Bumas

The common wisdom is that the crypto boom is well and truly over. Even though there are, of course, plenty of crypto evangelists and even NFT collectors still out there, the Silicon Valley hype cycle has moved on to AI. So you might not know that one of the biggest brands on social media right now is a cryptocurrency-based video game called Hamster Kombat.

According to our data, Hamster Kombat's X account is the hottest page on the app, going from zero to 10 million new followers in just three months. Meanwhile, its YouTube account is the fastest growing account in history. In June, it gained over 20 million new subscribers, second only to MrBeast. Its fanbase is using Telegram at such a scale that, last month, Telegram jumped to the number three most-downloaded app on Android. But what is this game and why is eating social media right now?

Hamster Kombat runs inside of Telegram, on the app's custom blockchain, TON (Telegram Open Network), which launched in 2019. Like many other crypto projects, TON had dubious legal status, and in March 2020, the state of New York officially banned TON’s crypto tokens (called Grams at the time) from being publicly sold. Telegram officially separated from TON in May, but because the blockchain was open source, it restarted basically immediately as “The Open Network,” aka TON again, and still remains closely tied to Telegram.

The blockchain’s currency is now called TONCoin, which currently has a market cap well over $18 billion (that’s greater than dogecoin’s market cap) and powers a lot of blockchain games and services that run on Telegram. And the biggest of which is Hamster Kombat.

When Hamster Kombat launched in March of this year there was a marketing push to all of Telegram's users asking them to join. And, similar to Threads’ close relationship with Instagram helping inflate user numbers, Hamster Kombat now counts basically every Telegram user as a Hamster Kombat user, making it tough to get a handle on how many people are actually playing this game (they say 250 million). But strangest of all, the creator of the game remains anonymous. Crypto media outlets have joked that it's a CIA operation.

As for how one actually plays Hamster Kombat, you don't really. You have a pet hamster and you earn in-game coins by clicking on the hamster a la Cookie Clicker. If you're looking for any kind of lore, you basically have to click on the hamster to raise his levels until he becomes the CEO of a crypto exchange. Very meta.

But Hamster Kombat does have one clever gameplay innovation that is driving its extreme growth on social media. Aside from tapping on your virtual hamster to get coins, the game also gives you daily rewards for opening it every day. For instance, if you complete a 10-day streak you end up with seven million coins. And inside the app every day are other challenges, the majority of which are performed elsewhere on the web.

The game rewards you with coins for joining its Telegram Group, for watching its YouTube videos, for following the game on X, and for inviting more friends into the game. This large-scale, gamified inauthentic behavior is likely why Hamster Kombat's most recent YouTube video has 8.1 million views and every single comment is literally the same phrase over and over again: "Thanks to the Hamster Team for supporting our country." Based on the human beings making content about Hamster Kombat on YouTube, much of their user base is in India and Southeast Asia. Another clue to their user base is that many of the subtitles for Hamster Kombat's YouTube videos are set to Russian.

Right now, there is no way to convert Hamster Kombat's coins into real money, or even other cryptocurrency. But that’s changing soon. An "Airdrop" of $HMSTR tokens is scheduled for this month, which may explain why so many users are following the game's accounts right now. For those not familiar with crypto parlance, basically, there will finally be a way to link your progress in the game to a crypto token you can trade on open markets. Users may get issued free tokens based on how regularly they're playing the game or how many in-game coins they’ve amassed (the details of the airdrop are not yet confirmed). 

Hamster Kombat is often compared to Notcoin, which was the first clicker game that launched on Telegram in January and did its own AirDrop of the NOTcoin token back in May. It also runs inside of Telegram on the TON blockchain and doled out more than 80 million NOT tokens to players. Right now, one NOT token is worth about $0.016, which isn't bad as far as niche crypto tokens go — dogecoin’s token, DOGE, is worth about $0.12 at the moment. It’s important to point out that Telegram's crypto wallet isn't available in the US, which adds to the proof that the majority of the game's audience-turned-investors are not in America.

But what makes Hamster Kombat much more powerful than Notcoin, or other popular crypto games that have come before it, like Axie Infinity or 9Gag’s Memeland, is that it has added a new layer on top of the slot machine gameplay loop that keeps players hooked. Not only is it asking you to keep clicking on a virtual hamster to earn an in-game currency that it is promising you will eventually be tied to a crypto token, it's also asking you — and rewarding you — to invite your friends. Paying you in-game currency to follow its social media accounts so other people learn about the game and do the same. To watch its content and trick algorithms into promoting it further. Until everyone is playing Hamster Kombat.


Garbage Day is an award-winning newsletter that focuses on web culture and technology, covering a mix of memes, trends, and internet drama. We also run a program called Garbage Intelligence, a monthly report tracking the rise and fall of creators and accounts across every major platform on the web. And we'll be sharing some of our findings here in Sherwood. You can subscribe to Garbage Day here.

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Hyperliquid reclaims all-time high

HYPE, the native token powering perpetuals exchange Hyperliquid and its underlying blockchain, rebounded to reclaim its all-time high previously set at the start of the month.

Treasury firms Hyperliquid Strategies and Hyperion DeFi have also rallied as the token increased double digits in the last 24 hours to trade as high as $76.70, rising past its record price set nearly two weeks ago, according to CoinGecko. In the interim between all-time highs, HYPE pulled back to around $53.

The token has several tailwinds, the first coming from ETF flows. Since their inception in May, HYPE ETFs have yet to record negative weekly outflows, posting a cumulative total net inflow of $171.8 million, per SoSoValue.

The second comes from Hyperliquid spending basically everything it earns in fees to buy HYPE, a mechanism embedded into the protocol’s codebase.

The venue’s buyback funding mechanism is set to add a new source of yield. Validators of the network activated “AQAv2,” which means stablecoin deployers will share about 90% of reserve yield revenue on their supply within the protocol.

Around $6.1 billion of Circle’s USDC resides in Hyperliquid, per DefiLlama. Accrual begins on August 26 and the first payment is made on October 3, the network announced in its Discord channel last week.

A substantial amount of capital is riding on different positions of HYPE. In total, a move down to under $53 would result in the liquidation nearly 1.8 million HYPE worth of leveraged long positions on the on-chain perps venue, or $131.7 million, data from CoinGlass shows. For the upside, a climb above $100 results in the liquidation of more than 3 million worth of leveraged HYPE short positions, or $221.5 million.

HYPE’s rebound to all-time high comes after Michael Selig, chair of the Commodity Futures Trading Commission, defended his agency’s decision to approve regulated perpetuals, or futures contracts without expiration dates, CNBC reported on Monday.

Last month, the CFTC approved bitcoin perpetual futures trading in the US through regulated prediction markets firm Kalshi and an affiliate of centralized exchange Coinbase.

“Perps are highly likely to become lightly regulated and thus approved in the US,” said David Pakman, head of venture investments at CoinFund.

“We expect to see perps for many different types of assets, from commodities to equities,” Pakman told Sherwood News.

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Crypto market snaps back as sentiment lifts, with altcoins from ethereum to XRP soaring

The market capitalization of the crypto industry has jumped around $83.2 billion in the last 24 hours, with privacy-focused token Zcash and worldcoin, the native cryptocurrency of the network backed by OpenAI CEO Sam Altman, leading market gains, jumping over 22%.

But the last 24 hours have been good across the board:

Investors have been eager to see some positive signs around the Iranian conflict ending, coupled with hopeful outlooks around the CLARITY act, both breathing some life into assets, Kairos Research cofounder Ian Unsworth told Sherwood News.

Simon Shockey, a crypto strategist at crypto wallet infrastructure firm Privy, said the upswing stems from several things converging. He pointed to how alt markets broadly were very oversold following the bug found in Zcash that shook confidence.

Friday, Zcash founder Zooko Wilcox said Anthropic didn’t find any more serious bugs with the Zcash protocol after Shielded Labs requested the AI firm run a security audit of the network with Mythos.

Shockey added that the pool of willing sellers has dwindled. Even if structurally, AI is a much more compelling and asymmetric bet in the eyes of allocators, many of these crypto assets have simply run out of marginal sellers despite some shorter-term narrative-driven pumps. The only people left to sell at this point are the teams themselves and VCs.

Net-net: oversold conditions plus exhausted seller bases plus a macro backdrop thats stabilized equals a snapback, especially in names that have real usage or community conviction behind them,” Shockey told Sherwood.

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