News
Telegram is the Crypto adoption machine
Listen to any crypto podcast or conference panel and you will hear crypto natives talking about a killer app yet to come that will be integrated into the rest of the world. But what if it’s already here? I argue that Telegram and a handful of independent developers have made more progress in onboarding the masses to cryptocurrencies than they have done so far $100 billion in venture capital that has flooded the space since 2014.
Cryptocurrency adoption has been hampered by (i) poor UX, (ii) limited real-world usefulness, and (iii) terrible distribution. Through the support and integration of The Open Network (TON), Telegram is addressing all of these issues and more.
From the perspective of a cryptocurrency enthusiast
During its initial development and until recently, cryptocurrencies focused on niche technological development that primarily served crypto speculators and lacked real-world utility. With the arrival of spot ETFs and the opening of companies like BlackRock funds focused on asset tokenization, the time for evolution is now.
Telegram combined its messaging app that boasts 800 million monthly active users, a blockchain that provides binaries for cryptocurrency adoption in TON, and a native wallet bot known simply as Wallet. Many cryptocurrency decks vaguely romanticize the idea of ”merging Web2 and Web3″, Telegram is actually doing it.
With this combination, Telegram solves the three main problems that have held back cryptocurrencies. In my opinion, stablecoins are the best cryptocurrency product to date. With native USDT on TON since April, seamless P2P value transfer has become a reality. Users can send cryptocurrencies to their friends as easily as sending a message on WhatsApp. This is a smoother UX than neobanks like Venmo or Revolut and light years ahead of traditional banks.
The opportunity to integrate hundreds of millions of people into cryptocurrencies, however, likely comes through Telegram mini apps — an open platform for businesses to build and deploy encryption-friendly apps. This will allow crypto teams to distribute their product to crypto non-natives while the end user won’t necessarily know they are using a crypto product — be it a fun mobile game or a DeFi protocol.
From the perspective of a cryptocurrency native
Telegram solidified its place in the cryptocurrency world a long time ago. This is a popular platform among crypto natives used to keep in touch or share ideas, and is usually the first social media channel created by new crypto projects alongside their X account.
Recently, for chain traders, it has become something more. A new generation of Telegram trading bots has forever changed the UX of cryptocurrencies, and perhaps changed on-chain trading forever. Buying/selling, setting limit orders, scanning new projects, spotting new launches and copying “smart money” – all made simple with just one command.
Having a Telegram bot that completely freed me from the most frustrating UX issues of on-chain trading was a breath of fresh air. It was one of the very rare times a crypto product made me say “wow, this is awesome.” However, it has made altcoin trading much more competitive and has spurred what I consider to be “altcoin proliferation”.
Does this mean altcoin trading/investing is dead? Away from it. The ease with which newcomers can now interact with smart contracts compared to what I had to do in the beginning is night and day. This, combined with increasingly useful distribution and apps, means a new wave of capital will flow into cryptocurrencies in the coming years.
Exciting, but there’s still work to do
The improvement we have here in UX cannot be overstated. I say this because I myself have placed non-crypto friends through the TON Wallet. Before Telegram’s current infrastructure, I would let out a small sigh at the prospect of trying to teach a friend how to use cryptocurrencies. Now, thanks to Telegram, I don’t see how it could be easier.
So that’s it, Telegram and TON won, right? Not exactly. The improved UX and distribution is a big step forward, but we have yet to see a full range of consumer-facing apps. Mini apps are being developed and there is a big incentive for game developers to create a fun Telegram game that captures the attention of its huge user base. Alas, what exists now is more meme-based than utility-based. Regulations also remain a concern, but this is an ongoing industry-wide issue, not isolated to Telegram or TON.
Telegram and TON have a lot to do, but I believe they will make it. It seems that the market is already evaluating this, as $TON has already reached the top 10 cryptocurrencies by market capitalization. $TON’s run has largely been fueled by fervent speculation that we know well, but there are real fundamentals supporting much of its growth.
Most of us want to see a future where cryptocurrencies are used by the masses. This sentiment is shared by Telegram co-founder and CEO Pavel Durov, who is a major proponent of Bitcoin. TON’s mission is to “put cryptocurrencies in every pocket”. Simply put, Telegram is better positioned to accomplish this than any other entity in our growing industry.
Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
Edited by Benjamin Schiller.