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The widely used messaging service, Telegram, has become much more than a means of conveying information. At present, it boasts of having more than 700 million active users making it a virtual hub for the various crypto tokens.
This shift from being a basic communication platform to being the centre of activity for crypto groups is due to the characteristics and functions, as well as the communities themselves, which use it intuitively. But what exactly makes Telegram so attractive to the crypto world?
The main factors for Telegram to succeed in the cryptocurrency market are decentralization and its non-stringent moderation of the content shared. These factors have turned it into a home of crypto communities who want to avoid more restrictive social media platforms.
A study conducted by CryptoSlate found that 70% of all crypto communities use Telegram instead of other chat applications such as Discord or even Twitter.
1. Decentralized architecture: The platform architecture of Telegram does not allow this to happen, and the data of the users will not be leaked out which is invaluable in today’s world where privacy and freedom matter most.
2. End-to-end encryption: It means that using Telegram, it is safe to discuss various matters of concern such as business strategies and operations in the stock market.
3. Customizable bots: With the help of bots in API, many different processes can be performed in Telegram, including market analysis, trade support, and project progress monitoring.
Accounts such as @CryptoWhale and @ICOUpdates are now indispensable to traders and developers since they notify users in real-time and help with the analysis of the data.
These features have led to the creation of thousands of crypto-related groups and channels. Some of them have over 1 million people, due to the nature of the coalition. These are reliable platforms with like-minded people where one can interact with different crypto projects, discuss tendencies, and exchange crucial tips on trading.
Owing to Telegram’s active and vast crypto groups, it has been easy for token sales and listings to increase. Another factor bowing to Telegram's success is its crypto-oriented nature making it an ideal place for circulating new tokens and promising projects. In 2022 alone, Telegram-based token sales amount to over $1 billion based on information from ICODashboard.
The success of token sales on Telegram can be attributed to several factors:
1. Community engagement: It was made clear that only communities of strong and active people could provide a successful token sales campaign. Telegram groups even help the developers directly interact with potential investors, answer their questions and set up trust. This always engaging creates a loyal community, one of the best strategies when it comes to creating interest and hype in token sales.
2. Real-time updates: Instant messaging of Telegram enables projects to give a real-time update on their performance. From the ability to announce the company’s achievements, highlight development accomplishments, or respond to public concerns, it helps the firm win investors’ trust.
3. Bot-driven automation: Some useful tips that make the buying process of tokens and initial coin offerings (ICOs) much easier are presented by the bots in the application. These bots enable users to buy tokens from within the apps meaning fewer hurdles for the ordinary user who wants to dabble in cryptocurrencies.
Several leading cryptocurrencies have been able to gather massive funds from their ecosystem using token selling through Telegram. Two notable examples include:
Toncoin (TON): Toncoin launched its sale through a token sale on the messaging app known as Telegram in 2020, and it sold its coins for $1.7 billion. It received an incredible amount of attention because the Telegram community actively supported it, which is a perfect example of how a platform can rally millions for Crypto projects.
Gram (GRAM): Similarly, in 2019, the GC token sale brought in $1.7 billion, but the project’s many promotions and community establishment were mainly conducted in Telegram. Although the project thus fell foul of the regulator and ran into problems, the process of raising the funds showed that Telegram was capable of successfully hosting high-profile crypto projects.
Telegram is one of the main platforms where many ICOs have chosen to store their tokens and this has been helpful for the industry but there are some problems and questions surrounding this partnership.
Some of the key concerns include:
1. Scams and phishing attacks: Since it is an open platform, the application has been subjected to the scorn of malicious individuals who take advantage of innocent users. Such fake channels, impersonation scams and phishing attacks are some of the prevalent ones. Cryptocurrency fraud in the calendar year 2022 resulted in a loss of $3.8 billion with some of the fraudsters from the Telegram groups.
2. Regulatory uncertainty: For all its decentralization, Telegram maintains a presence in what is effectively the Wild West of the internet. Officials of several countries have raised concerns on the issue of operating Telegram, which is not well monitored at times making it difficult for genuine projects to be implemented without a ban by law.
3. Market volatility: The cryptocurrency market is very unstable and it is reflected in the token price on Telegram. Volatility concerning the prices can also make the users of such communities behave in a chaotic manner or wanna-go attitude. While higher volatility has been observed in the wind power project, regulating this volatility has been a problem for investors or project developers.
Telegram has undeniably transformed into a key player in the world of cryptocurrency tokens. Now, Telegram has become one of the emergent leaders in the world of cryptocurrency tokens. The expanded structure of the platform, the ability to maintain secure connections, and the use of community actions attract fans of cryptocurrencies.
Increased availability of customizable bots and making it easier to launch token sales, has only guaranteed it as a place for cryptocurrencies.
Nevertheless, the platform is not devoid of some problems in its usage. A risk associated with Cryptocurrency exchange is that scams exist and there are always issues with regulations that are sometimes a cause of market fluctuations.
However, there is no doubt about the role played by Telegram to influence the future of the crypto markets. So, as the market of crypts develops, the role of Telegram will also increase, which will continue to be one of the leading outlets for the creation and promotion of new digital assets.
