News about new cryptocurrency tokens skyrocketing after switching up platforms are becoming more common. The latest entrant in this regard is Telcoin, a token that exploded by more than 300% on May 5 after it made a lateral move to the Level 2 Polygon network. Telcoin trades as TEL, and it has enjoyed considerable appreciation because it is the only serious competitor to Ripple, the centralized token developed by Ripple Labs.
Similar to Ripple, a token that trades under the XRP symbol, Telcoin is a digital currency token specifically designed to enable international money transfers and remittances. It is not compatible with the other two standard currencies, Bitcoin and Ripple. Telcoin is designed with the highest trust for the users, and it partially runs on a peer-to-peer network.
The business team behind XRP has been the most successful in the cryptocurrency space. Ripple Labs executives have worked with some major names in international banking in order to test various money transfer systems. The goal is to be able to provide a modern alternative to the old SWIFT bank wire platform, which has always been slow and expensive. Despite having forged partnerships with the likes of Santander and American Express, these agreements have been tenuous. XRP has also garnered criticism in the cryptocurrency community because of its centralized governance and lack of mining opportunities. These issues resulted in the creation of Telcoin, but this token has also attracted a bit of controversy.
Telcoin token trading is a potential point of contention for the future of this project. Imagine a migrant laborer in Canada who wants to send money to his family in Mozambique; if she happens to use Telcoin on the day the token appreciated 300%, her relatives back home would be very happy, but how would they feel if they get the remittance on a day when TEL is trading at record lows.
Fortunately, the Telcoin team is working on safeguards that will allow stable currency exchange for remittances. The goal is to separate trading activity from the actual remittance mechanism. As far as the future is concerned, Telcoin could take the form of a token as opposed to an asset that is backed by investors.