Is Telcoin A Good Investment, And How High Can It Go?
Those of us investing in cryptocurrencies are always looking for new projects that we can invest in. However, there are certain considerations we need to make before investing.
A good investment strategy will always keep in mind the need for a diverse portfolio. While you will have the bulk of your crypto in the bigger-name cryptocurrencies, you will always want to diversify. A smaller percentage of your crypto investments should be placed in more up-and-coming currencies.
This is where we take a look at Telcoin. While it’s not a coin that has been dominating the market like Bitcoin and Ethereum, it is still well placed in the crypto space.
Telcoin is a coin that has existed in the crypto economy for a while and is thus an established player. In this article, we’ll be giving you an overview of the project behind the token. This should give you an answer to the question: Is Telcoin a Good Investment?
What is Telcoin?
The Telcoin platform is a worldwide peer-to-peer payment system that looks to disrupt the existing remittance systems. The focus the platform has is on sending money instantly with extremely low costs. The native token for the Telcoin platform is also called Telcoin (TEL).
The platform sells itself as being the first currency to combine the reach and access of the mobile telecom networks with the borderless blockchain. Telcoin looks to provide every mobile phone user in the world with access to fast and affordable, user-owned financial products.
This partnership gives the platform a massive advantage. This year, the number of smartphone users in the world is 6.378 Billion which translates to 80.69% of the world’s population owning a smartphone. Now, this number will only grow over time as more people move to have them.
As it stands, people around the world still send money through expensive remittance services like Western Union. Given that there are nearly five times more mobile phone users than active bank accounts, the existence of Telcoin is only logical.
By partnering with the telecoms industry, the platform provides users high speed and low-cost remittances around the world. Telcoin aims to provide transactions that take just a few seconds while offering these at a low cost of 2% per transaction. As it stands, sending a remittance costs around 7%.
With these fees being so high and phone access being much larger than bank services, it’s easy to see that there is a niche that the platform can fill.
The Team Behind Telcoin
Now the strength of any project is only as good as the team behind it. Telcoin was founded in 2017 by Claude Eguienta and Paul Neuner. While Claude has since left the project, Paul Neuner is still an active part and is currently acting as CEO.
Neuner is an entrepreneur with over 12 years of experience in the telecommunications industry. Given his experience in the Middle East and Asia, he grew to know the use cases and needs for remittance services. This, in combination with his experience in the cybersecurity space, grew to make Telcoin.
Now, Telcoin was not the only project launched by Neuner. He previously co-founded Mobius, a fraud management service for mobile network operators.
Launched in Singapore, Telcoin is regulated in the same location as a Major Payment Institution by the country’s Monetary Authority. It is also regulated in other locations like Canada and Australia. That being said, the team has offices in Singapore, Tokyo, Dubai, and Los Angeles.
Recently, Ryan Tully, the product lead of one of the world’s most popular crypto exchanges, Kraken, joined the Telcoin team. With him comes a wealth of crypto and traditional finance experience. This shows that Telcoin is looking to the future with a solid team behind them.
In June 2021, Telcoin launched one of the most important updates to its product. They introduced the ‘V3’ or version 3 of the platform.
This upgrade to the Telcoin platform is built on two different services:
- The marketplace layer, powered by TELx. This is the decentralized liquidity network powered by active Telcoin users. It essentially functions as a “liquidity engine” for the Telcoin Platform’s user-owned products. TELx lets users gain rewards for providing liquidity to the assets that run on the Telcoin network. Through a ‘Proof of Liquidity,’ TELx Miners can earn TEL rewards for providing the needed cash flow for the platform.
- The Settlement Layer, ‘Rivendell.’ This is an Ethereum side chain that is validated by Mobile Network Operators. This gives access to the subscribers of the mobile networks to blockchain-based financial services.
This combines the crypto financial services with the telecommunications network’s reach and existing infrastructure, which gives further access to financial systems to those that could usually not gain access to them.
On top of these, V3 also launched the following services:
- The Send Money Smarter (SMS) Network: This platform is a user-owned, decentralized international money transfer platform. SMS decentralizes foreign exchange, enabling remittance senders to capture fees that were exclusively awarded to legacy financial institutions.
- TELxchange: This is a decentralized exchange network that uses TEL as the reserve and medium of exchange.
These services all add to the utility that the TEL token provides. Added functionality translates to added use cases and adoption of the TEL ecosystem.
TEL: The Hearth And Soul Of Telcoin
As we already mentioned, the Telcoin platform works on the Telcoin (TEL) token. This token is an ERC-20 token that is powered by the Ethereum network.
At the time of writing, the coin is ranked #107 on Coinmarketcap. It has a market capitalization of $1,111,053,941 and a 24-hour trading volume of $14,001,151.
When the project launched, 25% of the tokens were distributed to investors, the Telcoin team held 15%, and 5% went to a liquidity fund. Concerning the total coins in circulation, 55.03 billion TEL are in the market, with a total cap of 100 billion TEL to ever be issued.
All of these factors have contributed to the token’s value increase of more than 12,724.3% over the past year.
Let’s take a look at how the team controls the coin release. The team has subdivided how the new tokens generated are distributed. This distribution is there to fulfill different objectives and tasks set to grow the platform and ensure adoption. This is how it works:
GSMA Member Mobile Network Operators
Of the new TEL to be released, 50% is designated towards the mobile network operators. This incentivizes these Networks to onboard into the Telcoin ecosystem, which all moves towards bringing further reach to Telcoin. As new mobile network operators onboard, the user base increases.
This has seen quite a bit of success. Multiple partnerships have since been created, and the list of partners is ever-growing.
The TEL token is also in place to reward new platforms and applications on their Rivendell platform. 20% is set aside for protocols with live applications on Rivendell. How much is gained depends on the usage of the application during the period.
Active Telecoin users can gain rewards for the liquidity provided to the Telcoin ecosystem. Of the total issued TEL tokens, 15% is designated to this.
Telcoin intends to coordinate a global, diverse, liquid, decentralized network of Telcoin Markets.
Foundation and User Acquisition
Of the last 15%, 10% is set aside to incentivize adoption and provide education for the Telcoin platform. The last 5% is set aside with the objective of “Financial Inclusion.”
This limited and tiered supply means that only a set amount of tokens will ever be generated. This gives the token a level of scarcity as only a smaller percentage will be held by users.
The Road So Far
It’s always a good idea to look at the past trends of any project that you’re looking to route money in. As a general rule, prices are quite sensitive to mob mentality. If a token is moving upwards, people will want to join in, so the token goes higher. This applies to Telcoin as well.
The coin has been in circulation since 2017. This is quite a while for a cryptocurrency. It is no longer driven by the mere novelty of the same but more by trust. The crypto world already knows the product and knows it to be an established player. After its initial release in 2017, the novelty died down. At that point, the token stabilized at around $0.0003 until the end of the decade.
At the beginning of 2021, there was some movement again. The token gained new life with the release of Telcoin 2.0. It reached an all-time high of $0.0649 in May of 2021. While it has since come down from that high, the platform has been seeing a solid upwards trend ever since.
This shows that the crypto community is taking the project seriously and looking towards what the future holds. Just remeber that past performance does not guarantee future trends.
The Future of Telcoin
If you’re asking yourself, “Is Telcoin a good investment?” you’ll be looking at what the future of Telcoin holds. With the launch of Telcoin V3 and the onboarding of Ryan Tully to the team, the future looks quite bright.
As of June 2021, the team expanded services to 23 mobile money platforms in 16 different countries. This expansion does show that the team is making strides towards expanding the reach and availability of the product. If we are looking at this from an investor standpoint, this means that the future of Telcoin is looking bullish.
The experts feel the same thing and believe that the price will go up in the future. The price prediction site Wallet Investor claims that the price of Telcoin is expected to grow in the future. With its current price of $0.02026, the site predicts that the coin will go up to $0.138 in the coming years. This means that Holders can potentially expect a +581.15% increase to get to that price.
Even in the short term, Telcoin has a bullish trend for forecasters. According to Tradingbeasts: “ (…) By the end of 2021, the average Telcoin price is expected to be $0.026”. Short term, this is quite an increase of 30% from its current price point.
Digital Coin is another service that foresees a bright future for Telcoin. It predicts that the coin will grow up to $0.064 from its current price after a five-year period.
This shows that there is a generally positive sentiment toward TEL that suggests an upward trend. All this being said, we really cannot reinforce enough that these are simply models that the teams make. Nobody can predict perfectly how the markets will move, nor can they account for abnormal events—case in point, the COVID-19 pandemic.
With the platform growing in the market space, nobody can say for sure what will happen in the future. At least these platforms do see a good outlook for the coin. That being said, it’s always a good idea to plan for the long term and not the short term.
We do believe that Telcoin holds promise, and we look forward to what the future can provide. We can’t help ourselves and have to remind you to do your own research and remember that crypto markets are highly volatile.
All in all, we do believe that Telcoin does provide much-needed services and is looking to make changes in the remittance ecosystem. The combination thereof with DeFi services provides a perfect merging of two worlds. For one, the reach and services that only telecommunications services can provide, and on the other, the decentralized blockchain economy.
We hope to have been able to answer the initial question that we set out to ask. “Is Telcoin a Good investment?” We believe that with this information, you can see what the platform looks to achieve and can now decide whether or not it is something to put your funds into.
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