The messaging app Telegram has added support for the stablecoin giant USDT on its wallet bot, according to a CoinDesk report. With this integration, users can now buy and sell USDT directly within the app, expanding the app’s cryptocurrency capabilities.
This significant development makes it easier for Telegram users to manage their cryptocurrency holdings and conduct P2P transactions using USDT. With this new integration, users can now access and use the stablecoin within the Telegram app, which could increase the adoption and use of USDT.
Telegram’s wallet bot is a feature within Telegram that allows users to manage their cryptocurrency holdings, including sending and receiving transactions, checking balances, and viewing transaction histories. Adding USDT to the wallet bot expands the app’s crypto capabilities, which previously included support for Bitcoin and Telegram’s cryptocurrency under the ticker TON.
What Are The Risks Of Integrating USDT On Telegram?
The popular messaging app has increased its involvement in cryptocurrency by adding support for various cryptocurrencies on its wallet bot. In addition to Bitcoin, Telegram also added support for its TON token last year.
While the integration on Telegram’s wallet bot can offer several benefits, there are also some risks associated with using the stablecoin on the platform; these risks include:
- Counterparty risk: When using the wallet bot, users essentially trust Telegram with their cryptocurrency holdings, as the platform manages the private keys, and users rely on Telegram’s security measures to protect their funds.
- Network congestion: Like all cryptocurrencies, stablecoin transactions are processed on a blockchain network, which can become congested during times of high demand, resulting in delays in transaction processing and increased fees.
- Scam activity increase: The integration of USDT on Telegram’s wallet also raises the risk of fraudulent activities by scammers. These scammers may attempt to take advantage of the integration by creating fake accounts or offering fraudulent investment opportunities to users.
The integration of USDT on the messaging platform can have several positive effects on the stablecoin, such as increased adoption and making it accessible to a wider audience.
Furthermore, by allowing users to send and receive the cryptocurrency directly within the app, the integration on the wallet bot makes using the stablecoin more convenient and user-friendly, which can encourage more users to use USDT for their transactions instead of other cryptocurrencies, resulting in a further increase in its adoption worldwide.
Additionally, this can improve the market stability of the stablecoin, as it is pegged to the US dollar; USDT is designed to provide stability in the often-volatile crypto market. Moreover, this new feature can enhance its liquidity, providing another platform for users to trade and exchange, driving up demand.
Overall, the addition to Telegram’s bot is a positive impact, as stablecoins like USDT are becoming increasingly popular for their ability to offer stability and reduce volatility in the crypto market, helping increase its adoption and encouraging more investors to use both the app and the stablecoin.
Feature image from Unsplash, chart from TradingView.com