Before Facebook decided to launch its cryptocurrency project, Libra, the social platform had an extremely negative stance against cryptocurrencies, going as far as to disable advertisements related to the sector. Combined with a controversial background, cryptocurrency enthusiasts decided to opt-out of Facebook and nest themselves at other platforms such as Twitter and Telegram.
While both social platforms are used for discussing events surrounding the sector, ICO projects are for some reason particularly keen to advertise themselves on Telegram. Even the company’s founder, Pavel Durov, decided to join the cryptocurrency sector by creating a native digital asset for the platform, raising $1,7 billion in their initial coin offering.
Why is Telegram so important to the Crypto community?
If you are following a particular project, chances are that they have their own Telegram group for general discussion, posting news, and announcements. Being an extremely privacy-oriented application, traders and technology enthusiasts decided to use Telegram as a community hotspot.
The reason behind this is Telegram’s extensive list of features, some of the best crypto telegram groups integrate a variety of tools and technologies that provides access to news, chatbots, and other functions. Combined with encrypted messages and an accounting system where your phone number does not have to be linked (compared to platforms such as WhatsApp), Telegram became an ideal option.
As marketing is an essential step before holding an initial coin offering, projects decided to do most of their advertising on telegram. If they garner enough interest and provide an interesting solution, crypto projects can attract a significant user-base.
Will Telegram continue to be an ICO hotspot?
The sector is not ideal. Due to its volatile nature, most cryptocurrencies can bring high profits to users who invest wisely. Apart from traders, developers and project founders can capitalize on their solutions as well. As it is difficult to determine whether a project is worthwhile or not, many inexperienced traders invest in digital assets that are outright scams.
Recent research conducted by an ICO advisory firm, Satis Group, revealed that 80% of all ICOs may be scams.
If you combine this fact with the potential event of a crackdown on cryptocurrencies by the SEC (U.S. Securities and Exchange Commission), Telegram may have a future problem that they have to deal with. With no global regulatory framework, ICO projects can freely scam their investors and easily get away with it. As the SEC is keen to protect American investors, the federal agency may decide to introduce severe measures that could help traders, but harm Telegram.
Telegram is certainly a technologically advanced messaging application, but if the platform does not issue any guidelines or take a step towards removing scam projects from their application, Telegram may have an issue with the SEC.
Compared to Facebook, Telegram is surely a far better option given its privacy-oriented nature. However, the feature might backfire as more and more developers scam their investors by providing false promises, or going as far as to not even deliver a product.
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