In the DePIN field, there are numerous projects, and the previous massive airdrop of 30 million BONK tokens made Saga stand out. The value of the airdrop exceeded the selling price of the phone itself, putting previously overlooked crypto phones in high demand, and even driving up the already expensive retail price. However, the uses and functionalities of encrypted phones have not yet been fully explored, and a new concept has emerged - “Cloud Phones”.

New Concept in DePin Field: Cloud Phone

APhone claims to be the first decentralized cloud-based smartphone, launched on Solana. According to the official website, APhone can seamlessly integrate its own processing power, storage capacity, and GPU, providing continuous, high-performance access.

Additionally, with the support of Aethir’s cutting-edge decentralized cloud technology, APhone ensures higher security, privacy, and user protection. At the same time, it offers countless smartphone features in a single device, providing a comprehensive and advanced mobile experience.

The total supply of the application token PHONE in the APhone ecosystem is 210 billion, with 85% owned by the community treasury. Currently, APhone has launched a points program where points can be converted into PHONE tokens.

PHONE tokens will grant holders voting rights in the APhone DAO, which manages the platform. In addition to governance, pre-installation of APhone requires payment in PHONE tokens, and holding a certain amount of PHONE tokens can unlock special access permissions and customization.

The goal of APhone is to become the ultimate gateway for approved web3 applications, similar to the App Store on the iPhone. While APhone’s document provides detailed explanations of its operational mechanisms, the user experience currently resembles operating a phone interface through a computer, still at a relatively abstract concept stage.

Crypto Phones are Making a Comeback

In the DePIN field, compared to cloud phones, crypto phones are more well-known. Especially with the recent launch of the Saga phone by Solana, which was sold out due to the anticipation of airdrops, even Solana co-founder Anatoly himself is using it.

Compared to regular iPhones or Android phones, crypto phones are designed to emphasize blockchain, cryptocurrency, and decentralized applications. The most common feature is enhanced security to protect your cryptocurrency and private keys, and some features can run full Bitcoin nodes or even be used for mining.

HTC Opens the Door to the World of Crypto Phones

In fact, the origins of crypto phones can be traced back to 2019, when HTC collaborated with Binance to release the limited edition Exodus 1 phone. Subsequently, HTC launched a second blockchain phone, the Exodus 1s.

The Exodus 1S is a significantly streamlined version of the Exodus 1, priced at $244 and featuring an embedded Zion hardware wallet that allows users to store and send Bitcoin, Litecoin, Ethereum, and some other ERC-20 tokens based on the Ethereum blockchain. Most importantly, Exodus 1s can function as a standalone Bitcoin node, meaning it can validate and execute transactions on the device itself without relying on other services.

However, the challenge lies in the fact that to run the node, Exodus 1 must remain plugged in and connected to a Wi-Fi network, rendering it essentially useless as a smartphone. Additionally, the dApps provided by Exodus 1s are of little practical use.

Not only is the advantage of being a crypto phone not evident but according to an article by Decrypt, the Exodus 1s has advantages as a regular smartphone only in terms of longer battery life. However, its disadvantages are more apparent. It has a cheap feel due to its lightweight plastic construction, uses a low-end Snapdragon 435 processor, and only has a single 13MP rear camera.

But the emergence of the Exodus 1s undoubtedly opened the door to the crypto phone field.

In the same year, Samsung launched the crypto phone Galaxy S10, priced at $899. Not only improved in performance and appearance as a smartphone, but as a crypto phone, the Galaxy S10 supports dozens of currencies such as Bitcoin, Ethereum, LEO tokens, Chainlink, and more. Meanwhile, its dApp lineup includes games, social media, and financial applications. With the Snapdragon 855 processor, the Galaxy S10 also has its trusted execution environment. Subsequently, Samsung partnered with Kakao to release the blockchain version of KlaytnPhone, named the Galaxy Note 10.

In addition to Samsung, there are also other crypto phones on the market, such as the Finney by Sirin Labs, which features a wallet activated by sliding (priced at $999), the modular phone Pundi XPhone, and the cheapest crypto phone, the Electroneum M1 (priced at $80), among others.

Saga’s Massive Airdrop Leads the Way for a New Approach to Crypto Phones.

Early attempts at crypto phones failed to gain any meaningful traction due to their high prices and semi-finished user experiences. However, Solana’s Saga phone changed the game.

In July 2022, Solana released the flagship Android phone Saga for the web3 market. At the time, the market was in a bearish phase, and there were no positive factors in the crypto phone sector. Most users were unwilling to spend $1000 to buy Saga. Consequently, Saga’s early sales were slow, with only about 20-30 units sold per day, far from the target of 20,000 units. Even after a significant 40% price drop to $599 in August 2023, the phone still struggled to attract buyers.

However, the game-changer was Saga’s airdrop of 30 million BONK tokens to each phone owner. In November 2023, the value of the airdrop surged past the cost of the phone itself as BONK broke resistance levels, altering Saga’s fate. Demand for Saga phones surged significantly, and by December 15, 2023, all 15,000 Solana Saga phones were sold out within a day. The frenzy surrounding the phone reached its peak, with resale prices on secondary markets like eBay soaring to $5000, despite initially being overlooked at $599.

After the phones sold out, the hype around Solana Saga phones intensified further. Various projects announced a range of additional rewards for Saga phone users, including Access Protocol distributing 100,000 ACS tokens, Saga Monkes airdropping 8505 NFTs, Solana meme project Samoyedcoin also airdropping 1250 SAMO tokens, and many other projects like Solend committing to airdrop tokens to Saga owners, while others like Helium offered benefits such as a one-month free trial of Helium Mobile.

Reportedly, Solana plans to launch the second generation of its crypto phone in the first half of 2025, with a tentative price of $450. Many projects, including Solend, Helius, Chads, and Solcial, have already announced airdrops, benefits, and giveaways for Saga 2 owners.

The success of the first generation led to 100,000 pre-sales within just 30 days of the Saga 2 release, and other cryptocurrency projects have begun launching their crypto phones. Among them, Aptos announced a collaboration with Jambo Technology to launch the JamboPhone, designed specifically for Generation Z users in emerging markets in Africa, Southeast Asia, and Latin America.

What are the Opportunities for Crypto Phones?

The success of Saga can be attributed to the economic stimulus brought about by the anticipation of airdrops. Considering the current state of blockchain infrastructure development, even in the year 2024, the building blocks for developing high-performance crypto phones seem to be non-existent.

Even today, there is still a lack of interesting applications and user experiences in the DeFi ecosystem, let alone in the app stores of crypto phones from 6 to 7 years ago. Apart from the limited app selection, crypto phones are relatively expensive compared to other regular smartphones on the market, and they lack practical tools for everyday cryptocurrency use. Consumers find it challenging to identify demand in the crypto phone market.

However, as internet access expands globally, people are increasingly using smartphones for cryptocurrency and traditional financial transactions. Affordable smartphones accessing the DeFi ecosystem have the opportunity to attract billions of dollars into the cryptocurrency domain. Additionally, encrypted native smartphones and app stores will enable developers to access thousands of DeFi advanced users and innovate freely without facing the challenges of opaque guidelines and fees associated with markets like the Google Play Store or Apple App Store.

Looking ahead, crypto phones can be seen as tools that prioritize encrypted values such as freedom, self-custody, and privacy, ensuring users can control their assets and digital rights. In this scenario, crypto phones come with built-in secure enclaves, similar to safes within phones, to securely store private keys and isolate them from other phone activities.

One day in the future, we may look back on the BONK airdrop and how it triggered shifts in power dynamics in the technology industry. Perhaps, encrypted phones really can bring cryptocurrency into the mainstream, but only time will tell.

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