Telcoin (TEL) is a cryptocurrency released by the facility with the same name on the basis of the Ethereum platform. It was founded by the Singapore company to connect different cryptocurrencies, blockchains with the telecom industry.
The financial technology platform Telcoin is based on a payments protocol that uses mobile payments to deliver borderless transfers easily at lower costs compared to traditional banks or payment systems such as Western Union. The platform tries to put mobile network operators at the center of their strategy and it is ready to work with global, regional, and local telecoms and their aggregators to attract as much telecom airtime as possible.
The idea of the service was born due to the disparity between the number of customers with access to financial services and the number of those who use telecom services. The strategy was developed taking into account a large number of unbanked people who can't use even basic financial services. Thus, Telcoin decided to change the situation and empower the members of that segment. According to Statista, the number of mobile subscriptions has exceeded 8 billion in 2019 which means that the market is huge and has good potential.
The other aim pursued by the team is the possibility to save up to 42 billion USD and even more than that in annual remittance fees according to calculations of the founders. They assure that the goal is attainable with the spread of the blockchain-based system such as Telcoin. The company pursues a long-term strategy trying to align itself with the mobile telecommunications industry (GSMA) and mobile network operators the world over. The project was named “MFS 2.0” (Mobile Financial Services).
Telcoin platform and products
The platform has the potential to deliver faster and cheaper remittances and save billions in fees and countless hours of wasted time spent on processing by traditional banks and payment stores. A user only needs a smartphone and cryptocurrency wallet for that. The transfer will occur immediately and with much lower fees.
Partnership with mobile operators performed by Telcoin helps to prevent friction that didn't let similar projects develop further. The main aspects causing problems usually include trust, reach, and KYC compliance. The easy bridge created by Telcoin between mobile money and cryptocurrencies helps to increase the level of trust in the cryptocurrency industry.
Taking into account the number of mobile phones globally the company expects to generate a higher ROI in comparison with the possibilities of any network infrastructure. It is possible to achieve it by partnering with mobile operators that can provide access to their existing subscriber base. It is easier to adopt financial services even for unbanked people who nevertheless have access to mobile services. KYC compliance is also easier achieved with the assistance of telecom operators, which have a better capability to perform effective KYC in comparison with traditional banks.
In 2020 the team built two parallel products enabling the community to compete with traditional remittance players in a non-custodial, decentralized way. The technology infrastructure was almost finished by the team by January 2021. The company developed a multi-signature Telcoin Wallet that is incredibly simple to install and operate.
TEL liquidity mining pool was launched on Uniswap V2 in August 2020. Its goal was to attract liquidity to decrease transaction costs for TEL users. The process of liquidity mining began in September 2020 and continued until October 2020, during which 5 million TEL was distributed proportionally depending on pool ownership. The platform planned four mining periods to distribute 20 million TEL among contributors.
The participants were asked to lock liquidity from 0.5 ETH to be eligible in the TEL/ETH pool. Those who lock more than 1 ETH were promised a bonus. Such contributors received a share of a 2.5 million TEL proportionally to the percentage contributed to the pool.
The Telcoin App for both iOS and Android users was released in 2020 that enabled the cheapest fiat remittances. The first corridor that was launched is from Canada to the Philippines.
Telcoin token and ICO
The company plans to issue 100 billion Telcoin. During the ICO that took place in December 2017, the contributions to the token sale exceeded 10 million USD, which was a soft cap threshold. The Telcoin ICO continued until February 11th. There were pre-soft cap bonuses, and other incentives when the soft cap was closed, such as a 5% referral bonus and bonuses that varied from 5 to 15% for ETH contributions. The platform also conducted the bounty campaign that continued from December 7th,2017 to January 31st, 2018.
The facility was launched by Claude Eguienta and Paul Neuner. Though Claude was the CEO first, he left the project. Now, this position is taken by Paul, who previously was a tech entrepreneur in the telecom industry. He was also a founder of Mobius, a top provider of telecom solutions used by 30+ mobile operators throughout the world.