Introduction
The once-thriving Telegram mini-game ecosystem, built on the TON blockchain, has imploded amid plummeting token prices, developer exodus, and internal power struggles. What began as a Web3 “traffic goldmine” in early 2024 has unraveled into a cautionary tale of inflated metrics, opaque governance, and strategic missteps.

False Prosperity: The Illusion of Growth
At its peak, TON-based mini-games like Notcoin and Catizen generated millions in revenue, with tokens such as NOT and DOGS skyrocketing. Binance listed five TON ecosystem tokens within months, and the chain’s TVL surged 70x. However, this growth masked a toxic reliance on artificially inflated user metrics.

Projects exploited “studio-driven” traffic, where bots and colluding developers inflated user numbers to meet exchange listing thresholds. KinKin, a former developer, revealed that acquiring users cost as little as $0.002 in regions like India, enabling projects to fake 200,000–300,000 “users” overnight. Cross-promotion between games further amplified the illusion, but real engagement remained negligible.

Black Box Data and Fleeting Users
The TON ecosystem operated in secrecy. Unlike transparent blockchain projects, Telegram mini-games hid true user ratios. Early successes like Hamster Kombat had ~60% real users, but this plummeted to 40%—or lower—as sybil attacks and airdrop hunters flooded the space. Sleepy, founder of Ghost NFT, noted that even “active” users were often serial opportunists, leaving no lasting value.

Power Vacuum: TON’s Fractured Governance
Behind the scenes, TON Foundation’s internal chaos worsened the collapse. Rival factions—Russian, Taiwanese, and Dubai-based teams—vied for control, sidelining developers lacking Kremlin connections. Key projects like Catizen and Notcoin thrived only through close ties to Russian insiders, while others starved for support.

TOP (The Open Platform), led by ex-Telegram executive Andrew Rogozov, emerged as the de facto power, controlling critical infrastructure like TON Space wallet and Stonfi DEX. Meanwhile, TON Foundation became a “PR shell,” with abrupt leadership changes and no clear roadmap.

Strategic Whiplash: From Games to DeFi
In 2025, TON Foundation abruptly pivoted from mini-games to DeFi, abandoning developers mid-stream. “They stopped caring about games overnight,” said Sleepy, whose team halted development. This shift, coupled with Telegram founder Pavel Durov’s legal issues, shattered confidence. Tokens like NOT and DOGS crashed, leaving investors stranded.

Conclusion
The TON ecosystem’s collapse underscores the risks of growth-at-all-costs strategies in Web3. While Telegram’s reach offered unparalleled traffic potential, reliance on fake metrics, centralized cronyism, and erratic governance doomed its mini-game experiment. For blockchain ecosystems to survive, transparency, fair resource allocation, and user-centric innovation must replace short-term gambits.