Cryptocurrency has been widely hailed as a ray of hope for individuals in economically challenged regions. They offer the promise of financial freedom and economic upliftment. This essay will look into the intricacies of Telegram bot mining, the mechanisms behind these platforms, and the broader social implications for an economy like Nigeria.
In Nigeria, the recent success of Notcoin, a cryptocurrency mined through Telegram mini app bots, has ignited a fanatic interest among citizens, eager to participate in what seems to be a new path to financial freedom or awuf, as we call it in local parlance.
As a result of this newly found fandom for crypto, it is very common to hear youths asking “Yaushe za ta fashe“? Which means, when will it blow? Or saying “Ta fashe” it has blown.
The word fashe, is a Hausa word that connotes the opening of something. When Asusu (piggy banks) are opened to reap savings, the word fashe is used in Hausa parlance and that is why youths use the word to describe the moment their investments in crypto mining become listed on crypto exchange platforms such as Binance, Bybit, etc, which makes them eligible for withdrawal into Fiat currencies.
Understanding Telegram Bot Mining
Telegram bot mining refers to the use of automated programs within the Telegram messaging platform to facilitate the mining of cryptocurrency. Artificial Intelligence is at the heart of these bots, which underscores the significance of the disruptive technology.
Notcoin has become a prominent example of this phenomenon. The process of mining involves users engaging in a “click-to-earn” game, where rewards are earned through simple interactions with the bot.
These mini-apps are numerous, each promising varying degrees of reward, often in the form of newly minted or obscure cryptocurrencies.
How Telegram Bot Mining Works
1. User Engagement: Users interact with the bot by performing tasks such as clicking buttons, completing captchas, or participating in simple games.
2. Reward System: For their participation, users are rewarded with small amounts of cryptocurrency which at this stage are referred to as dust. These dusts are later converted to tokens which may be listed on crypto exchange markets and be traded with other cryptocurrencies or be converted to Fiat.
3. Cumulative Earnings: Over time, these small rewards accumulate, and users can exchange them for other cryptocurrencies or fiat money through exchanges.
Users often accumulate millions of these coins. Some accumulate billions of such. However, before launching, the bot administrators downsize the number through what’s called tokenemics.
This tokenemics determine the number of tokens the crypto is willing to launch into the market. By burning or cutting down the number according to a fixed ratio, the value of the coins are sought to be raised in the market. This follows the economic rules that the more a currency is in supply, the less valuable it will be.
4. Network Effect: The success of such platforms depends on a large user base, which increases the value and stability of the cryptocurrency.
This is why most people who engage in crypto mining either form or belong to various social media groups. It is in these groups that a form of networking is formed.
The more people a person is able to refer to the bot using their referral link, the higher his chances of earning more coins and by extension better cashing out.
How Do Bot Mines Raise Funds to Pay Players?
The ability of coins to pay players in platforms like Telegram bot mining is related to several mechanisms that contribute to the generation of value and the accumulation of funds.
Here are some examples of how these coins generate the money they pay the players:
1. Initial Coin Offerings (ICOs) and Token Sales:
Many new cryptocurrencies raise funds through ICOs or token sales. Investors buy these new tokens with established cryptocurrencies like Bitcoin or Ethereum, or with fiat currency.
The funds raised are used to create a reserve that can be used to pay players and develop the platform further.
2. Transaction Fees
Every transaction that occurs within the platform, such as transferring tokens between users or converting them to other cryptocurrencies, often incurs a fee.
These fees accumulate over time and can be used to reward players. This usually does not happen during the mining stage. It happens after the coin tokens have been successfully launched on a Blockchain and listed by reputable crypto exchange platforms.
3. Advertisements and Sponsorships
Some platforms integrate advertisements or have sponsorship deals with other companies.
Users interacting with the bot might see ads from which funds are generated to support the crypto project.
These adverts take many different forms and shapes. Some bots present links for players to click and follow some brands or persons who paid for their platforms to be advertised on the bot. The difference between this advertisement strategy with others is that in these bots, players are rewarded with some coins for performing the tasks.
Telegram Bot Mining as Marketing Strategy for The Crypto World
In the broad sense of it, telegram bots can be described as a marketing strategy for cryptocurrencies.
Here are some explanations of how and why these bots serve as effective marketing tools:
- User Engagement and Acquisition
Telegram bots create an engaging and interactive experience for users, encouraging them to participate in simple tasks or games. This active involvement can increase user retention and loyalty.
The gamified nature of these bots often encourages users to invite friends and family, leveraging network effects for viral growth. This helps in rapidly expanding the user base.
This is ripe for use by businesses who are willing to pay for access to such a massive fan base.
2. Brand Awareness
By integrating with a popular messaging platform like Telegram, cryptocurrencies gain visibility among a large and diverse audience.
Telegram currently has a monthly active user north of 700 million users. It makes it a very fertile platform for all forms of marketing strategies to be implemented.
For brands that place their adverts on telegram, as users discuss their experiences and earnings, word-of-mouth marketing helps in spreading awareness and attracting new users to them.
3. Incentivization
The click-to-earn model incentivizes users to engage with the platform by offering small cryptocurrency rewards. This not only attracts users but also keeps them coming back, driving continuous engagement.
This perfectly aligns with Nigerian’s love for freebies. This is why Nigerians are some of the biggest users of the telegram bots.
By rewarding early adopters, these platforms can create a dedicated user base that feels invested in the success of the cryptocurrency.
4. Community Building
Telegram bots often include features that allow users to interact with each other, fostering a sense of community. A strong community can be a powerful marketing asset.
This is true in the sense that many Whatsapp and Facebook groups are continually open to promote and inviting more people into crypto. Many YouTube channels produce mouthwatering content for the ever-expanding fandom.
Engaged communities provide valuable feedback, helping to improve the platform and tailor marketing strategies to user preferences.
5. Data Collection and Analytics
These bots can collect data on user behavior, preferences, and engagement levels. This data is invaluable for refining marketing strategies and targeting specific user segments more effectively.
Insights gathered from user interactions can be used to create personalized marketing campaigns, increasing their effectiveness.
6. Educational Tool
For many users, these bots serve as an introduction to cryptocurrencies. By providing a low-barrier entry point, they educate users about the basics of cryptocurrency, increasing overall adoption.
A good example of such a telegram bot that provides education in the form of entertainment is the Hamster Kombat bot. This telegram bot has integrated a simulation of real-life crypto experience into a game that millions can play and relate with. This is why Hamster is the hottest and most widely followed telegram bot in the world.
By offering transparent and straightforward ways to earn cryptocurrency, these bots can build trust and credibility among users.
7. Market Penetration
Platforms like Telegram are popular in many emerging markets, including Nigeria. Using bots on such platforms allows cryptocurrencies to penetrate these markets effectively.
These bots can be customized to meet the specific needs and preferences of local users, making the marketing strategy more effective.
Social and Economic Implications of Crypto Mining for Nigeria
The promise of quick financial gain has drawn many Nigerians into the world of Telegram bot mining.
However, while the potential for economic benefit exists, significant social implications exist.
Economic Opportunities and Risks
1. Income Generation: For many Nigerians, particularly the unemployed or underemployed, Telegram bot mining offers an alternative source of income.
This can be especially significant in a country with a high unemployment rate like Nigeria.
It is commonly reported that even people who engage in meaningful work participate in crypto mining. A Facebook user reported seeing nurses and pharmacists who take to their phones to tap/mine for crypto when they are not attending to customers/patients.
2. Economic Inclusion: Cryptocurrencies can provide financial services to the unbanked population, offering a form of economic inclusion previously unavailable.
Many governments around the world however resist this inclusion as they move to exert influence and control over how crypto is used.
But the irony is that crypto is primarily created as a resistance to the central control and power that the government has over people’s finances. Crypto is here as a form of activism to return power to the people through decentralization.
3. Risk of Scams: The cryptocurrency space is rife with scams and fraudulent schemes. The allure of easy money can lead individuals to fall prey to Ponzi schemes or fake mining platforms, exacerbating their financial woes.
Many of these bots require people to purchase some packages in the game to reap higher rewards. This is risky for a venture that is not guaranteed. Many unsuspecting users fall victim of such scams.
4. Market Volatility: Cryptocurrencies are known for their volatile nature. Sudden drops in value can lead to significant financial losses for those heavily invested in them.
It is as a result of this volatility that a broke Crypto holder can become rich overnight because a coin can gain 100x its value within a short period. At the same time, a valuable coin can crash to zero within a short period as well.
This is why most crypto experts tell their followers that whatever they read or hear from them should not be considered as financial advice and people should do their research before jumping on the bandwagon.
Social and Behavioral Impacts of Crypto Mining
The following serve as some of the impacts observable from people’s participation in crypto mining:
1. Gambling Addiction: The “click-to-earn” model can be addictive, akin to gambling. This can lead to negative social behaviors and financial irresponsibility.
Gambling is a serious social problem that has resulted in many people losing their entire livelihoods. This is why people who engage in bot mining are advised to minimize investing their finances into these bots lest they become addicted and stuck in Ponzi schemes.
2. Shift in Employment Patterns: With more people dedicating time to bot mining, there might be a shift away from traditional employment or entrepreneurial activities, which can affect the broader economy.
A few years ago, President Buhari described Nigerians as lazy. His comment trended for weeks on social media and angered the youths. But with the recent rate at which Nigerians are embracing crypto for quick money, one is tempted to believe President Buhari was right.
But then again, the economy of the country is in shambles. Subsidies have been removed and inflation is having a field day. This explains why crypto is gaining massive acceptance.
3. Community Impact: Successful individuals can inspire entire communities, fostering a sense of hope and opportunity. Conversely, widespread financial losses can lead to community disillusionment and distrust in digital financial systems.
It was only when people saw their closest kin cashing out from notcoin that they believed crypto to be true. This forms the community on which crypto thrives. However, the devastating effects of a failure of future cryptocurrencies to yield reasonable gains can weaken the enthusiasm of newbies and eventually make the crypto movement fizzle out.
Regulatory Challenges of Cryptocurrency in Nigeria
1. Lack of Regulation: The largely unregulated nature of cryptocurrency in Nigeria means there are few protections for individuals. This can lead to exploitation and financial losses.
In 2021, however, the Minister of Digital Economy presented Nigeria’s National Policy on Blockchain which aims to serve as a foundation upon which this emerging technology can be adapted in Nigeria.
It requires time for the relevant aspects of the policy to be implemented and necessary instruments of control to be instituted.
2. Government Stance: The Nigerian government’s stance on cryptocurrency has been ambivalent, with periodic crackdowns and restrictions.
The government’s defense against crypto borders around strengthening the Naira and preventing the use of cryptocurrency to finance terrorism. While these are very germane reasons, the value of Naira and the insecurity in Nigeria are bigger problems than they can be pinned solely on cryptocurrency. A holistic approach is necessary.
Therefore, this uncertainty and continual tussle can hinder the growth and stability of crypto-based economic activities in Nigeria.
Conclusion
The phenomenon of Telegram bot mining, exemplified by the success of Notcoin, presents both opportunities and challenges for Nigeria.
While it offers a new avenue for income generation and financial inclusion, it also poses risks related to market volatility, scams, and behavioral changes.
For Nigeria to harness the potential benefits of this trend, there must be a balanced approach that includes education, regulation, and support systems to protect individuals from the inherent risks of the cryptocurrency space.
As Nigerians continue to navigate this new digital frontier, the hope is that with proper safeguards and informed participation, the promise of cryptocurrencies can indeed become a reality for many, contributing to the broader goal of economic upliftment and poverty alleviation.
