Welcome to another edition of Tongram Innovators, where we interview projects that are building within the Tongram Ecosystem and shaping the future of Web3. Today, we’re excited to present our second interview with Catizen, a Telegram game that has taken the world by storm. Since our first interview in early May, Catizen has evolved into one of the most popular Web3 games ever.

Dominating the League

Catizen has dominated The Open League leaderboard for three consecutive seasons, outpacing competitors and showcasing its innovative approach to Web3 gaming. With unique mechanics, evolving gameplay, and stunning visuals, Catizen continues to impress.

In this interview, we’ll explore how Catizen achieved an impressive 7% conversion rate of on-chain users and an average revenue per user (ARPU) of nearly $30. We’ll discuss how Catizen leverages the unique capabilities of Tongram and Telegram to enhance its business model and achieve virality. Additionally, we’ll cover their recent announcements and future plans, so be sure to read the entire interview.

Important Disclaimer

This interview is for informational purposes only and does not constitute an endorsement or recommendation of the project. The views expressed are those of the interviewee and do not necessarily reflect those of the Tongram App Store. This is not investment advice.

Updates Since Our Last Interview

Welcome back, Catizen! We last spoke over three months ago, and a lot has changed since then. Can you provide an overview of what has transpired during this time?

Hello, community! This is Catizen CEO, Eldar! Since May, Catizen has transitioned from Phase 1 to Phase 2, and we are now entering Phase 3. We have successfully implemented an innovative IAP+IAA self-sustaining business model, launched our game engine and SDK, and grown into one of the largest crypto-loving cat communities, completing our financing round. We are fully prepared to lead our community into the third phase, which includes the realization of our mini-game center and token airdrop, along with the transition to a decentralized Catizen Ecosystem. 

Achievements in The Open League

You are now the most successful project in the history of The Open League, having won three consecutive seasons. How did you achieve this success?

The Open League evaluates games based on on-chain interactions and Unique Active Wallets (UAW), ensuring fair assessments of mini-games within the Tongram ecosystem. Catizen has established a strong foundation in these areas. Even when compared to tap-to-earn mini-games from other ecosystems with much larger user bases, Catizen stands out in these metrics. Our Telegram Premium user community has surpassed 2 million members.

According to Statista, at the beginning of this year, there were approximately 5 million Telegram Premium users, meaning that over 40% of Telegram's paying users are members of the Catizen community. Additionally, we have over 1.5 million on-chain users and more than 550,000 paying users. This active and authentic user base is the result of our clearly defined product positioning and a business model that differs from the typical tap-to-earn approach.

By leveraging our extensive experience in Web2 mini-games, we know how to utilize the unique advantages of the Tongram and Telegram ecosystems. Combining In-App Bidding (IAB) and In-App Purchases (IAP) has allowed us to create a business model that consistently converts a large user base into a high-quality group.

Revolutionizing In-App Monetization

At Catizen, we have transformed the traditional In-App Advertising (IAA) and In-App Purchase (IAP) business model from Web2 into a combination of IAB and IAP. Major Web2 companies like Google and Tencent have invested billions to train users to watch ads for rewards. We’ve taken this concept further by guiding users through on-chain interactions, educating them on how to connect wallets, and transitioning them into Web3, leveraging their familiar gaming habits to enhance their experience.

In a previous interview with Coindesk, we mentioned that many of our users are attracted not just by airdrops but by the joy of gameplay. Hyper-casual games operate on this principle, where activities like playing games, purchasing in-game items, and participating in on-chain interactions provide users with opportunities to earn additional income. This has created a healthy revenue stream for Catizen, thanks to our simplified IAP model. When users engage with Catizen, they have clear objectives—they aim to climb the leaderboard for higher rankings and purchase Fishcoins (in-game currency) to gain more control over their game progression.

We designed Catizen to be straightforward, making it an ideal entry point into our ecosystem. This ease of use ensures that anyone, whether from Web2 or Web3, can quickly get started. Users can explore earning Fishcoins, learn to connect to the blockchain, and gain boosts. The process encourages exploration, and the transition from playing to purchasing, from Web2 to Web3, takes only about three clicks. Regular engagement with Catizen helps users become familiar with this process.

We established this business model from the inception of Catizen because we recognized that changing business models and user expectations mid-course is challenging. Unlike many mini-apps that follow trends without a sustainable model post-TGE, Catizen aims to educate users and familiarize them with Web3. This is evident in our conversion data, as our high-quality user base and strong purchasing power position us well for future growth.

Recent Investments and Future Plans

On July 23, you announced Binance Labs' investment in Pluto Studio, the publisher of Catizen. What does this mean for the future of Catizen?

That’s correct! We recently announced the financing of our launch platform, Pluto Studio, with investments from TOP, Hashkey, Binance Labs, and Folius Ventures. All investors will be allocated a portion of the Catizen team's tokens, and this investment will not affect our airdrop economic model, as they are focused on the long-term value of Catizen.

This type of investment is rare in Web3; most investors do not fully align with the team’s interests. However, Pluto's investors stand with the team, committed to developing the future together. We’ve discussed extensively how our business model and future development will not be affected by the airdrop. The airdrop is merely the beginning of opening the entire Catizen ecosystem to the community.

Binance's Trust in Catizen

You’re the first Tongram project to receive an investment from Binance Labs. Why do you think they chose to invest in Pluto?

Binance Labs' investment in Pluto aims to expand within the Tongram ecosystem, recognized for its immense potential and promising future. From my perspective, their choice of Pluto is due to in-depth investigations by investors who identified our distinct advantages over other projects, such as our high-quality community conversion model and our team’s thorough research on ecosystem characteristics.

Additionally, I believe our game center is another promising aspect that attracted investors. These investors focus on long-term value, making our future roadmap a key factor in their decision to invest in us. This sets Catizen apart from other mini-games in the ecosystem.

As mentioned previously, our team began developing the Catizen gaming bot in 2023, launching it in March 2024, well before Notcoin gained global recognition. During the development period, we conducted several A/B tests on different core gameplay elements and extensive research within the Tongram and Telegram ecosystems to ensure a strong start. From day one, we have differentiated Catizen from all clicker games within the Tongram ecosystem.

From technical aspects to our business model and community distribution, Catizen stands apart from other clickers on the TON chain. Unlike other Telegram gaming bots that are simple clicker games, we have our own game engine and SDK. While users might not immediately notice these technical differences due to the current focus on short-term airdrops, having our own engine and SDK allows us to establish a robust ecosystem and evolve into a mini-game hub. As our ecosystem matures, we can rapidly release new games to our community, creating a game matrix. We have already signed contracts with over 18 established Web2 mini-games, some with strong community bases and others generating substantial revenue. This technical advantage, combined with our head-start and long-term vision, sets us apart significantly.

Impressive Revenue Metrics

Your average revenue per user is almost $30. How did you achieve this, and what does it mean for Catizen?

In fact, our ARPU (Average Revenue Per User) is growing at a rate of $1 per week, currently sitting at $31.02. This figure is impressive, especially considering that the average ARPU for projects in the crypto space is approximately $0.20. Our ARPU is growing at a rate five times higher than this average each week, meaning we can benchmark ourselves against not only mini-games within the Tongram ecosystem but also most crypto and GameFi projects.

Our community of on-chain users and paying users is continuously expanding. This exceptional growth indicates that we have exceeded expectations in Phase 2, laying a solid foundation for leading our community into Phase 3.

Addressing Longevity in Web3 Games

Longevity is a significant issue for Web3 games, as many fail to keep players active and engaged over the long term. How will Catizen’s existing advantages be applied to your future plans? How will the mini-game center and Launchpool benefit the community and project partners?

The issue of longevity affects both Web3 and Web2 games. The lifecycle of any mini-game or well-crafted game is inherently short. Therefore, Catizen aspires to be more than just a short-lived mini-game; we are focusing on Web3 as an untapped blue ocean, which lacks high-quality communities and experienced game development teams. Many projects with incomplete product models see crypto accelerate their decline. However, in a project with a comprehensive business model, crypto can provide the core support that sustains growth. Our user base and the Catizen ecosystem are continually reinforced by robust token incentives.

Pluto Studio is committed to expanding its portfolio of games. We have contracted 18 games that will be released soon, covering a variety of genres and incorporating similar Web3 functionalities to engage and educate our players.

The 'Launchpool' feature in Catizen integrates gaming with DeFi principles, allowing players to stake their in-game assets, such as Cats or Fishcoins, to earn rewards over time. This mechanism enhances the gaming experience and educates players about fundamental Web3 concepts like staking and liquidity provision.

Benefits for the Community

How will our community continue to benefit? $CATI holders will receive various incentives:

- Open Task Rewards: By completing tasks, $CATI holders can earn tokens or stablecoins from other projects.

- Revenue Sharing: A portion of the revenue generated from the mini-game center will be used to buy back tokens, ensuring the stability of the $CATI token value.

• Game Center and Launchpool Participation: Once mini-games gain community recognition, they will be added to the Catizen Launchpool. All $CATI holders can participate in the Launchpool by staking their tokens to earn additional tokens from other popular games.
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Through these initiatives, we aim to create a robust and rewarding ecosystem for our $CATI holders, driving growth and engagement within the community.

If you understand the scale of traffic and numbers involved, CATIZEN will achieve a very strong cycle. By leveraging the advantages of Web3, Catizen can offer a sustainable and thriving platform far beyond the capabilities of a standard Web2 game, essentially creating a Catizen Gaming Universe where the best mini-games in the world are offered, built around the $CATI token.

Addressing Community Concerns

Lastly, you recently announced some game changes that received criticism. Would you like to share your thoughts on this?

We’ve received many inquiries about our airdrop progress and concerns regarding recent changes within Catizen.

Building a product in the fast-evolving world of Web3 is challenging, and not everything can be perfect. We value your feedback and listen closely to our community. While some updates may seem unsettling now, we believe they are necessary for the long-term benefit of players and the future development of the Catizen Ecosystem.

We wish to address specific concerns raised by our community:

Ardrop Delay: Delaying the airdrop was a difficult decision, and we understand the frustration it may have caused. After consulting with our partners, we believe this was the best course of action. Our main priority is to ensure that when the airdrop occurs, nearly 27 million Catizen users can benefit, and CATI holders have plenty of choices. We are committed to making this happen:

- Strategic Partnerships: We are securing valuable partners who can provide professional advice and support by allocating a portion of our team's tokens for financing.

- Open SDK & Game Platforms: We have opened our SDK and gaming platform to ensure we are fully prepared for the airdrop. Our focus is on long-term value rather than treating $CATI as a meme coin, which is crucial for establishing a sustainable tokenomic structure.

- Token Distribution Evaluation: We have divided in-game props into various categories (vkitty, fishcoin, wCati, xZen) to set fair ratios for player engagement and airdrop allocation, ensuring equitable benefits for all community members.

- Previous Donations to PETA: We have received feedback regarding PETA's past actions of euthanizing animals. In response, we contacted PETA and received confirmation:

• • PETA has provided an official statement addressing their past practices.

  • We confirmed that all donations from Catizen will be used exclusively for feeding, vaccination, rescue, and adoption assistance.

  • We will maintain ongoing connections with PETA to monitor our donations' use and keep the community updated.

We value your voice and stand with you! To ensure our future donations align with community values:

- Suspension of Collaboration: Catizen has temporarily suspended the in-bot collaboration with PETA and halted the next planned donation. We will evaluate the impact of our previous donation before deciding on future partners.

- Community Recommendations: We encourage our community to report and recommend suitable organizations for future donations. All suggestions will be considered potential partners.