in Crypto News
Telegram, the popular multi-platform instant messaging service, now offers in-app transactions in Toncoin (TON) to their 550 million active users, fee-free.
Users have to sign up for Telegram's Cryptocurrency Wallet and are then able to buy, exchange and transfer crypto.
Think sending money
On Telegram, at least, the usual back and forth of opening different tabs and copying / pasting bank details may be a thing of the past.
The encrypted messaging app has made it so that you can send currency inside the conversation like a picture from your gallery: just hit the paper clip, then the wallet, insert amount, and tap "send".
Announced with a short video to demonstrate how quick the process is, users will have to download Telegram's Wallet Bot and set it up first. Default transactions are set in Telegram’s native Toncoin (TON), the Wallet Bot allows for the purchase of BTC as well.
The payment service is one of a few, including Bitcoin’s Lightning Network, that is opening up the ease and feasibility of micro transactions. Telegram’s recent implementation increases the potential for mass adoption, as TON payments are now available to the app’s 550 million users.
Providing better alternatives to traditional payments in terms of time and cost is a priority in the industry if we are to reach mainstream adoption, but it remains to be seen whether payments on Telegram will take off.
US SEC controversy
TON is an acronym from The Open Network and was originally founded in 2018 by the brothers behind the Telegram app, Nikolai and Pavel Durov, to provide a secure and scalable decentralized layer-1 blockchain with quick transactions for “billions of users”.
In October 2019 the SEC filed a complaint against Telegram for the $1.2 billion ICO funding of their blockchain and the GRAM token, which the SEC argued was an unregistered security.
The litigation was settled in March 2020 with the return of the invested capital to the initial purchasers and a $18.5 million fine for the company, as well as a requirement "for the next three years, to give notice to the SEC staff before participating in the issuance of any digital assets".
After a successful negotiation with the investors and with a new team of developers, TON was formed as a separate token which was managed by the TON Foundation, and it so far remains technically independent from Telegram.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.