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Amid economic turmoil, Iranians pin hopes on 鈥楬amster Kombat鈥 app

The rise of the 鈥淗amster Kombat鈥 crypto app in Iran underscores economic desperation and widespread hope for relief amid the presidential election. Iran鈥檚 economy suffers from Western sanctions, high inflation, and few jobs.

By Jon Gambrell and Nasser Karimi, Associated Press
Dubai, United Arab Emirates

Cab drivers and bikers tap away furiously on their mobile phones as they wait at red lights in the Iranian capital during an early June heatwave. Some pedestrians in Tehran are doing the same. They all believe they could get rich.聽

The object of their rapt attention? The 鈥淗amster Kombat鈥 app.聽

A wider crypto craze aside, the app鈥檚 rise in Iran highlights a harsher truth facing the Islamic Republic ahead of the June 28 presidential election to replace late President Ebrahim Raisi, who died in a helicopter crash in May: an economy hobbled by Western sanctions, stubbornly high inflation, and a lack of jobs.

Even as presidential candidates make promises about restoring the country鈥檚 economy, Iranians, who have been hearing for years about bitcoin, are now piling into this app out of sheer hope it might one day pay off 鈥 without knowing much about who is behind it.聽

鈥淚t鈥檚 a sign of being desperate, honestly,鈥 said Amir Rashidi, the director of digital rights and security at the Miaan Group who is an expert on Iran. It鈥檚 about 鈥渢rying to hang on to anything you have a tiny hope that might some day turn to something valuable.鈥

Those able to divest from holdings in Iran鈥檚 beleaguered currency, the rial, have purchased property, art, vehicles, precious metals, and other hard assets since the collapse of Tehran鈥檚 2015 nuclear deal with world powers.

At the time of the deal, the exchange rate was 32,000 rials to $1. Today, it鈥檚 nearing 580,000 rials to the dollar 鈥 and many have found the value of their bank accounts, retirement funds, and other holdings gouged by years of rapid depreciation.聽

Meanwhile, prices of fruits and vegetables have jumped 50% since last year while the price of meat has risen 70%. The cost of a ride in a shared taxi, common in the Iranian capital, has almost doubled. Even rides in Tehran鈥檚 Metro, still the cheapest option for the city鈥檚 commuters, are up some 30%.

鈥淪ince morning, I had three visitors to my shop, none of them bought anything,鈥 said Mohammad Reza Tabrizi, who runs a clothing shop in downtown Tehran. 鈥淢ost customers prefer buying from peddlers or pre-owned items in other places.鈥

In underground walkways and other areas of the city, peddlers sell nearly anything they can get their hands on. It鈥檚 this desperate environment that has seen the public鈥檚 interest in cryptocurrency and mobile games offering coins rise.

The proliferation of smartphones across Iran, as well as the relatively low cost of mobile service compared to other nations, makes accessing apps like 鈥淗amster Kombat鈥 attractive.

The app is accessed through the messaging app Telegram, which remains popular in Iran despite efforts by the authorities trying to block access to it. It functions like an incremental or a 鈥渃licker鈥 game 鈥 users repeatedly click on an object or complete repetitive tasks to earn points.

In 鈥淗amster Kombat,鈥 users believe they may be able to access a purported cryptocurrency associated with the game that鈥檚 still not traded publicly.

In an email, individuals describing themselves as the game鈥檚 developers declined to answer questions about their identities or business plans, but insisted they were 鈥渘ot offering any cryptocurrency in the game.鈥澛

鈥淲e are educating our audience about crypto through gaming mechanics,鈥 the email claimed.

Still, the game resembles another app that did offer Iranians cryptocurrency in the past 鈥 and it seems that just the promise of what could be free money can drive some Iranians to distraction.

Jokes online show one man tapping on a gravestone as if it were a mobile phone. Another uses a massage gun to rapidly punch a Hamster on the screen.

But the public鈥檚 fascination with the game has also drawn the attention of authorities.

Rear Adm. Habibollah Sayyari, the deputy chief of Iran鈥檚 military, described the app as part of the West鈥檚 鈥渟oft war鈥 against Iran鈥檚 theocracy ahead of the election.

鈥淥ne of the features of the soft war by the enemy is the 鈥楬amster鈥 game,鈥 Rear Adm. Sayyari said, according to the state-run IRNA news agency. He theorized that the 鈥渆nemy鈥 is popularizing the game so that people would be distracted and not 鈥減ay attention to plans of presidential candidates.鈥

鈥淭hen [the people] fail to choose the best candidates,鈥 Rear Adm. Sayyari said. Hard-line pundits in Iran have voiced similar opinions.

The daily JameJam, published by Iran鈥檚 state television, also warned the ever-increasing interest in the game was a sign of 鈥渢he dream of becoming rich overnight and gaining wealth without effort.鈥 It said those playing range from 鈥渂uilders, mechanics, and refrigerator repairmen to colleagues and classmates in university.鈥

鈥淎 society that instead of working and trying to succeed and earn money turns to such games and looks for shortcuts and windfalls gradually loses the culture of effort and entrepreneurship and moves towards convenience,鈥 the newspaper said, without acknowledging that the country鈥檚 economic woes were potentially driving the interest in the app.

The app has even drawn the attention of a 97-year-old Shiite religious scholar, Ayatollah Nasser Makarem Shirazi, who is known for his fatwas declaring things 鈥渉aram,鈥 or 鈥渇orbidden,鈥 from his office in the holy city of Qom, Iran鈥檚 center of Shiite learning, packed with religious schools and revered shrines.聽

Calling cryptocurrency 鈥渢he source of many abuses,鈥 Mr. Shirazi said people shouldn鈥檛 use the 鈥淗amster Kombat鈥 app or others like it involving bitcoin.

Iran isn鈥檛 alone in having concerns about the game.

Authorities in Ukraine, locked in a devastating war with Iranian-armed Russia since Moscow鈥檚 2022 invasion, warned that users鈥 data remains stored in Russia and could potentially put them at risk.

Then there鈥檚 the wider risk of malware exposure as consumers in Iran often cannot purchase new software legally or even access legitimate app stores. They also face the risk of state-sponsored hackers targeting them for their political views.

Meanwhile, as Iran鈥檚 election campaign goes on, presidential candidates are using Instagram, X, and Telegram 鈥 all services previously banned by the theocracy after rounds of nationwide protests.

鈥淎s long as you are able to pay the price, everything is available,鈥 said Mr. Rashidi, the Iran expert.

This story was reported by The Associated Press.