What Is Telcoin (TEL)?
Telcoin (TEL) is the native token of a peer-to-peer payment system that leverages blockchain technology and goes by the same name – Telcoin. TEL tokens are stored on the Ethereum blockchain based on an ERC-20 token standard. Check out the Telcoin price chart above if you're interested in its historical performance, as well as the current TEL price.
The Telcoin platform aims to integrate blockchain technology into the telecommunication industry. It essentially allows users to quickly deliver worldwide transfers at lower prices than traditional banks or other payment systems do. The Monetary Authority of Singapore regulates Telcoin as a Major Payment Institution.
The main actors in the Telcoin system are users and mobile network operators. Users are especially important to the Telcoin platform since it's user-owned. However, Telcoin's strategy places a focus on mobile network operators as the main platform actors. Telcoin aims to partner with as many local, regional, and global telecoms as possible to gather the most telecom airtime possible.
Telcoin platform allows users to send remittances (non-commercial money transfers) all around the world at low costs. All they need to have is a smartphone and a crypto wallet. At the time of writing, users from the United States and Canada can send remittances to 16 countries, such as Bangladesh, Guatemala, and so on. However, the platform plans to incorporate more countries in the future.
The Founders of Telcoin
Paul Neuner and Claude Eguienta co-founded Telcoin in 2017. Neuner is a serial entrepreneur who has a lot of experience in the field of cybersecurity and the telecom industry. Prior to founding Telcoin, Neuner also co-founded Mobius and Sedona, which both provide telecom fraud management services.
Eguienta has a degree in computer science. In the past, he worked as a software and system architect at CyberAgnet. Apart from founding Telcoin, Eguienta also founded Kabotip. In 2020, he took the role of CEO at Mimo.
Telcoin was launched in 2017. Throughout its first year in the market, the TEL price remained very low, below the one-cent threshold. The period of long volatility ended in 2021 when the asset started seeing a more intense market performance.
The Telcoin price has been prone to following the broader crypto market trends. In 2021, the asset peaked at $0.06. The price, which was set in May, was considered the all-time high for TEL. The asset was negatively impacted by the crypto crash in Q2 2022.
How Does Telcoin Platform Work?
Telcoin takes a multi-level approach. Its architecture is built using an application layer, a liquidity engine, and a settlement network. All three parts are powered and combined by TEL tokens.
The Telcoin mobile app serves as an application layer. It provides access to user-owned Telcoin products such as a digital Telcoin wallet and a fiat remittance portal. In addition, it connects customers to TELx-powered use cases.
The decentralized liquidity engine of Telcoin is TELx. It essentially is a network of automated decentralized exchange markets. The SMS Network and TELxchange are the two main components of the network. The SMS Network is a decentralized global remittance network, while TELxchange is a decentralized digital asset exchange. Besides, users can become TELx Miners. The miners support the TELx Markets with self-custodial liquidity reserves. Besides, they stake LP tokens in the corresponding staking contracts to collect pool trading fees and TEL issuance rewards.
Lastly, an Ethereum-based sidechain called Rivendell serves as a settlement network. It's secured by Mobile Network Operators. Rivendell enables Telcoin users to make fast and secure transactions.
Talking about the consensus mechanism that Telcoin employs, even though it runs on Ethereum, it does not use the Proof-of-Stake consensus mechanism. Instead, it uses a Proof-of-Concept model. Due to that, telecom operators that partner with Telcoin act as transaction validators.
Besides, Telcoin uses a multi-sig model, which implies that at least two (or more) private keys are required in order to perform a transaction on the Telcoin network.
The Purpose of TEL Tokens
TEL is the utility token of Telcoin. Overall, it has six main functions:
- Medium of exchange. TEL is the most liquid medium of exchange on Telcoin.
- Reserve. TELx miners use TEL as a reserve asset.
- Protocol asset. In exchange for TEL issuance rewards and transaction fees, Rivendell Network validators protect the network.
- Work token. Active Telcoin users can stake TEL to support the ecosystem.
- Access token. TEL tokens are required to access the Telcoin platform and its products.
- Reward token. TEL tokens are used to reward telecom operators that connect to the Telcoin network. The amount of the rewards they receive is based on their TEL token traffic.
The Telcoin price is subject to change, so keep that in mind if you're thinking about purchasing TEL tokens. This occurs because the volatility of the entire cryptocurrency market has an impact on TEL tokens, just like it does on the pricing of other digital assets.
Tokenomics of Telcoin Tokens
The max supply of Telcoin tokens is 100 billion. The asset is deflationary, meaning that the TEL price is expected to rise over time. During an investor crowdsale that took place when Telcoin was launched, 25% of the token supply was distributed among the investors.
The telecom operators that connect to the Telcoin network can issue new TEL tokens and, as mentioned before, get rewards for their TEL traffic. 50% of the token supply is dedicated to these rewards. The Telcoin Team keeps another 15% of the total supply, along with 5% that goes to the liquidity fund.
If you're interested in the current TEL price and other market statistics, take a look at the Telcoin price chart above.
