Telegram Wallet Chooses Custody over Self-Custody for Easier Onboarding
Telegram Wallet, a popular Telegram bot for buying and selling cryptocurrencies, has decided to prioritize custody over self-custody in order to achieve easier onboarding for users. In July 2023, Telegram messenger announced the integration of its custodial crypto wallet, Telegram Wallet, allowing users to access the wallet directly from the messenger’s settings.
However, while existing Wallet users can see the wallet bot in the messenger, those who have never used it do not have access to the crypto wallet in their settings section. The full rollout of Telegram Wallet is expected to begin in November 2023, starting with several African and Latin American countries.
Rollout Plan and Availability
According to Halil Mirakhmed, the COO of Telegram Wallet, after the initial rollout in select countries, the Wallet will be made available in MENA, South East Asia, Central Asia, and Eastern Europe. Once the global rollout is complete, the Wallet will be accessible in the Telegram settings menu worldwide, except in jurisdictions where it does not operate.
Custodial Approach for Easy Onboarding
It’s important to note that Telegram Wallet operates as a custodial wallet rather than a self-custodial one. This means that users entrust their coins to a third party and do not directly own their assets. For instance, withdrawing Bitcoin from Telegram Wallet requires users to have enough BTC to cover the fees charged by the wallet bot.
Mirakhmed explained that opting for a custodial solution instead of a self-custodial one allows for easy onboarding of new users. Self-custody can be complicated for individuals new to crypto since they need to understand how to store seed phrases and deal with wallets, as well as pay gas fees for transactions.
Simplified Onboarding and User Experience
Telegram Wallet aims to simplify the onboarding process and user experience. With Telegram Wallet, users can start using crypto instantly by clicking on the Wallet option in their Telegram settings. The onboarding is straightforward, and users already have access to multiple chains. Additionally, sending assets to others can be done using telephone contacts within Telegram, eliminating the need to know the recipient’s wallet address.
Hot Take: Telegram Wallet Prioritizes Easier Onboarding with Custodial Solution
Telegram Wallet has chosen a custodial approach over self-custody in order to prioritize easy onboarding for new users. By offering a simplified experience within the Telegram messenger, users can access the wallet directly from their settings and begin buying, selling, and transacting cryptocurrencies seamlessly. Although some may prefer self-custodial wallets for greater control over their assets, Telegram Wallet aims to make crypto more accessible to a wider audience by eliminating the complexities associated with self-custody.
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