Telegram's No-SIM Signup Feature Helps Toncoin Rally, Bitcoin Also Higher
Telegram users can purchase blockchain-based identities by paying Toncoin and bypass the need to use a SIM card to apply for the service as previously required.
Messaging app Telegram recently unveiled a new privacy-boosting feature, lighting a fire under toncoin (TON), the native token of the decentralized layer one blockchain The Open Network, formerly known as Telegram Open Network.
On Dec. 6, Telegram announced that users can purchase an anonymous number on the Telegram founder's Fragment blockchain by paying Toncoin. Users can then utilize the unknown number to sign up for Telegram, bypassing the need to use a SIM card to apply for the service as previously required. Other end-to-end messaging applications like Signal and WhatsApp still require users to use their own mobile numbers.
TON has rallied 30% from $1.84 to $2.4 since the official announcement, with prices reaching as high as $2.8 at one point. Bitcoin, the leading cryptocurrency by market value, has gained a meager 4.5% during the same period, CoinDesk data show.
"Toncoin rallied +39.3% last 1w upon the revelation of the Telegram App's latest update, which allows users to open accounts without registering their phone numbers – instead, users can maintain anonymity by logging in using blockchain-based numbers, which are on auction for TON on the Fragment Platform," Markus Thielen, head of research and strategy at crypto services provider Matrixport, wrote in a note to clients on Thursday.
The no-SIM signup facility provides users with an added layer of privacy.
"On Telegram, your phone number was never visible to strangers – our users control who can see their number and whether others are allowed to find them by their phone number. Today starts a new era of privacy. You can have a Telegram account without a SIM card and log in using blockchain-powered anonymous numbers available on the Fragment platform," Telegram said in the Dec. 6 announcement.
In addition to allowing users to purchase blockchain-based identities, the new feature also opened the doors for the auto-deletion of messages on a timer for new chats.
These features marked deeper integration of blockchain technology, as promised by Telegram's founder and CEO Pavel Durov on Nov. 30.
Telegram plunged into the world of blockchains in late October with the launch of fragment platform, an Open Network-based decentralized auction platform allowing Telegram users to trade usernames. Since Fragment went live, the messaging app has sold at least $50 million worth of user names.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.