Why encrypted phones are becoming popular

Hardware has always been hard.

Niche tech devices have struggled at every turn in the market, but Solana managed to sell their first device (we know why) and has impressive pre-order numbers for their follow-up. This saga has attracted the attention of other crypto market players eager to build hardware moats and expand into new markets.

In this article we’ll dive into why the crypto smartphone is so important. We’ll also unveil the Saga phone legend and whether the device can maintain its MEME-powered success and pave the way for other entrants + a suite of mobile-friendly crypto apps.

Why are there encrypted phones?

Cryptophones are specially designed to cater to the daily on-chain activities of DeFi power users. They are equipped with features that simplify the use of applications and crypto transactions on mobile phones. In addition, they also act as self-custodial wallets for user assets (tokens) and digital collectibles (such as NFTs).

Encrypted phones are not a new concept. Some projects have tried it before (such as HTC Exodus, Samsung Galaxy S10, etc.), and many of them have failed several times.

In previous cycles, early attempts such as HTC’s blockchain smartphone and Sirin Labs’ Finney phone failed to gain any meaningful traction. Samsung tried to integrate a blockchain wallet into the Galaxy S10 in 2019, but that was also unsuccessful.

Looking back, the odds were always against them. Blockchain infrastructure was (and still is) in the early stages of development. The building blocks for developing high-performance crypto phones simply didn’t exist. Think about it: even today we’re still talking about fragmented DeFi UX and a lack of interesting apps in the ecosystem, so it’s hard to imagine what an app store on a crypto phone would have looked like 6-7 years ago.

Furthermore, these niche devices were quite expensive even compared to other regular smartphones on the market. The Finney phone had a whopping price tag of $999, while the HTC Exodus cost around 0.15 BTC or 4.78 ETH, which was around $960 at the time.

With a limited selection of apps on offer and a lack of practical tools for everyday use of cryptocurrencies, consumers find it difficult to justify why they would need an encrypted phone in the first place, let alone one that costs a lot.

As a result, encrypted phones never caught on.

But some of those factors have changed since then. As the success story of the Solana Sage phone reflects, the market is now showing strong interest in crypto phones.

Maybe they finally cracked the code on how to carve out a niche market for crypto phones within the ecosystem? But why did the Solana Saga phone succeed while others didn’t?

Solana’s Saga Season 1 is a Success

The Solana Saga phone was launched in the middle of a bear market when most users did not want to buy a crypto phone. Early sales were slow, at around 20-30 units per day, far from the 20,000 unit target. Even after a 40% price cut from $1,000 to $599 in August 2023, the phone still struggled to attract buyers.

However, when the phone was launched, each owner of the phone was airdropped 30 million BONK tokens. This was part of a wider ecosystem-wide distribution of BONK tokens, targeting its core demographic of users, developers, and NFT holders.

In November 2023, Saga's fortunes took a turn when the value of BONK soared after the Breakpoint conference. As the price of BONK continued to climb, the Solana Saga phone became an attractive purchase. Eventually, the value of the BONK airdrop exceeded the cost of the phone itself. This led to a significant surge in demand, and on December 15, 2023, the Solana Saga phone sold out, with all 15,000 phones snapped up in a single day. The frenzy surrounding the phone reached a peak, to the point where Solana Saga phones were reselling for as much as $5,000 on secondary markets like eBay.

The hype around the Solana Saga Phone was further amplified as various projects announced a range of additional bonuses for Saga Phone users, even after the phone sold out:

• Access Protocol announced that it will distribute 100,000 ACS tokens.

• Saga Monkes airdropped 8,505 NFTs.

• Samoyedcoin, the MEME coin on the Solana network, airdropped 1,250 SAMO tokens.

• Many projects like Solend are working to airdrop tokens to Saga owners, while others like Helium are offering benefits like a one-month free trial of Helium Mobile.

The BONK airdrop, and subsequent rewards from other projects for Saga phone users, has been an exceptionally rewarding experience for holders.

The phone developer now aims to replicate that success with the upcoming Solana Mobile Chapter 2, which is set to ship in the first half of 2025. Priced more affordably at $450, Chapter 2 follows the same successful incentive strategy as Chapter 1, coupled with the network effects of a referral system. Many projects, including Solend, Helius, Chads, and Solcial, have already announced airdrops, benefits, and giveaways for Saga 2 owners.

Remarkably, it achieved 100,000 pre-sales in just 30 days after its release.

Additionally, there is now a blueprint for other teams and ecosystems to follow — creating cost-effective crypto 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 Gen Z users in emerging markets in Africa, Southeast Asia, and Latin America.

What are the chances of encrypting your phone?

Cryptophones are one of our best options for scaling cryptocurrency to the masses.

As internet access expands around the world, more and more users are connecting to the internet. People are increasingly conducting cryptocurrency and traditional financial transactions on their smartphones. By making the DeFi ecosystem accessible through affordable mobile phones, we have a real opportunity to attract billions of dollars into the cryptocurrency space.

Additionally, crypto-native mobile and app stores would be a huge unlock for developers. It would give them access to thousands of DeFi power users and allow them to innovate freely without facing the challenges of opaque guidelines and fees associated with marketplaces like the Google Play Store or Apple App Store.

Furthermore, in the long run, people can view crypto phones as tools that put crypto values ​​such as freedom, self-custody, and privacy first. They ensure that users can control their assets and digital rights.

This means:

• Cryptophones give users full control over their assets - Cryptophones come with a built-in secure enclave; think of it as a vault inside your phone. This is where your private keys are securely stored, isolated from the rest of the phone's activity. This makes it very difficult for anyone but you to access your assets or other data. Users have full ownership of their assets, protecting their digital property rights. This also means that no centralized authority can block your transactions or take your funds.

• CryptoPhones protect users’ data - they use encryption to protect personal data, allowing you to send end-to-end encrypted messages on-chain. It protects your account from centralized interference and ensures that your digital civil rights are protected.

The adoption of crypto-native phones that put the ethos of crypto first is an extremely positive development for the future of crypto. There is no doubt that crypto phones have the potential to bring cryptocurrency into the mainstream.

One day, we may look back at the BONK airdrop and how the event sparked a shift in power dynamics in the tech industry. Only time will tell.

The exciting part is that in cryptocurrency, nothing is too absurd or too bold to consider.

Everything is possible.