In the world of cryptocurrency, nothing is too absurd or unimaginable.
By Arjun Chand, Bankless
Translated by 0xxz@Jinse Finance
Hardware has always been challenging.
Niche tech devices have faced difficulties at every turn in the market, but Solana successfully sold their first device (we know why) and garnered an impressive number of pre-orders for their subsequent work. This legendary story has caught the attention of other cryptocurrency market participants who are eager to establish hardware moats and explore new markets.
In this article, we will delve into why encrypted smartphones are so important. We will also unveil the legend of the Saga phone and whether the device can maintain its success driven by MEME coins, paving the way for other entrants and a suite of cryptocurrency applications suitable for mobile devices.
Why Encrypted Phones?
Encrypted phones are specifically designed to meet the daily on-chain activities of advanced DeFi users. They are equipped with features that simplify the use of applications and encrypted transactions on mobile phones. Additionally, they serve as self-custody wallets for user assets (tokens) and digital collectibles (such as NFTs).
Encrypted phones are not a new concept. Previous projects (such as HTC Exodus, Samsung Galaxy S10, etc.) have attempted this, and many have failed multiple times.
In previous cycles, early attempts like HTC's blockchain smartphone and Sirin Labs' Finney phone failed to gain any meaningful traction. Samsung attempted to integrate a blockchain wallet into the Galaxy S10 in 2019, but also did not succeed.
Looking back, the circumstances were always against them. Blockchain infrastructure was (and still is) in the early stages of development. The building blocks for developing high-performance encrypted phones simply did not exist. Consider this: even today, we are still talking about fragmented DeFi user experiences and a lack of interesting applications in the ecosystem, so it's hard to imagine what the app store on encrypted phones would have looked like 6-7 years ago.
Furthermore, these niche devices were quite expensive compared to other mainstream smartphones on the market. The Finney phone was priced at up to $999, while the HTC Exodus was priced at around 0.15 BTC or 4.78 ETH, approximately $960 at the time.
Due to limited app choices and a lack of practical tools for daily cryptocurrency use, consumers found it difficult to justify why they needed an encrypted phone, let alone an expensive one.
As a result, encrypted phones never gained popularity.
However, since then, some factors have changed. As reflected in the success story of the Solana Saga phone, the market now shows strong interest in encrypted phones.
Perhaps they have finally cracked the code on how to carve out a niche market for encrypted phones in the ecosystem? But why did the Solana Saga phone succeed while others did not?
Success of Solana's Saga Season 1
The Solana Saga phone was launched in the middle of a bear market when most users were not interested in buying encrypted phones. Early sales were slow, with only about 20-30 phones sold per day, far from the target of 20,000 units. Even after a significant 40% price reduction from $1000 to $599 in August 2023, the phone still struggled to attract buyers.
However, when the phone was launched, each phone owner received an airdrop of 30 million BONK tokens. This was part of the wider distribution of BONK token airdrops within the ecosystem, targeting users, developers, and NFT holders in its core community.
In November 2023, the fate of Saga changed as the value of BONK surged after the Breakpoint conference. With the continuous rise in the price of BONK, the Solana Saga phone became an attractive purchase. Ultimately, the value of the BONK airdrop exceeded the cost of the phone itself. This led to a significant increase in demand, and on December 15, 2023, the Solana Saga phone sold out, with 15,000 units being snapped up in a single day. The frenzy surrounding the phone reached its peak, with resale prices on secondary markets like eBay reaching as high as $5000.
Various projects announced a range of additional rewards for Saga phone users, and even after the phone sold out, the hype surrounding the Solana Saga phone further amplified:
Access Protocol announced the distribution of 100,000 ACS tokens.
Saga Monkes airdropped 8505 NFTs.
The MEME coin Samoyedcoin on the Solana network airdropped 1250 SAMO tokens.
Many projects on Solend and others committed to airdropping tokens to Saga owners, while other projects like Helium offered benefits such as a one-month free trial of Helium Mobile.
The BONK airdrop and subsequent rewards provided to Saga phone users by other projects were an exceptionally beneficial experience for the owners.
The developers of the phone now aim to replicate this success with the upcoming Solana Mobile Chapter 2, scheduled for delivery in the first half of 2025. Priced at a more affordable $450, Chapter 2 follows the same successful incentive strategy as Chapter 1, along with the network effects of a referral system. Many projects, including Solend, Helius, Chads, and Solcial, have announced airdrops, benefits, and giveaways for Saga 2 owners.
It is worth noting that it achieved 100,000 pre-orders within just 30 days of its release.
Furthermore, there is now a blueprint for other teams and ecosystems to emulate—creating cost-effective encrypted phones and leveraging network effects within the ecosystem.
Aptos recently announced a partnership with Jambo Technology to launch the JamboPhone, an affordable blockchain-integrated smartphone designed for Generation Z users in emerging markets in Africa, Southeast Asia, and Latin America.
Opportunities for Encrypted Phones
Encrypted phones are one of the best options for expanding cryptocurrency to the masses.
As internet access expands globally, more and more users are connecting to the internet. People are increasingly handling cryptocurrency and traditional financial transactions on smartphones. By providing access to the DeFi ecosystem through affordable phones, we truly have the opportunity to attract billions of dollars into the cryptocurrency space.
Additionally, encrypted native phones and app stores will be a huge unlock for developers. It will allow them to reach thousands of advanced DeFi users and enable them to innovate freely without facing the challenges of opaque guidelines and fees associated with markets like Google Play Store or Apple App Store.
Furthermore, in the long run, encrypted native phones that prioritize values such as freedom, self-custody, and privacy will be a highly positive development for the future of cryptocurrency. Undoubtedly, encrypted phones have the potential to bring cryptocurrency into the mainstream.
One day, we may look back at the BONK airdrop and how it sparked a shift in power dynamics in the tech industry. Only time will provide the answers.
The exciting part is that in the world of cryptocurrency, nothing is too absurd or too bold to consider.
Anything is possible.
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