The Wallet COO Halil Mirakhmed said that this custodial model was chosen intentionally over self-custody options such as MetaMask. In self-custody wallets, users possess their own private keys and seed phrases. But Mirakhmed argues that self-custody is too complex for crypto beginners.
“If you want to introduce as many people as possible to crypto, self-custody becomes exceedingly difficult,” he said.
With Wallet, users can purportedly start buying and selling crypto immediately after enabling the bot. The process is simplified by avoiding private key management, gas fees, and public wallet addresses.
However, experts warn that custodial services compromise user security and financial sovereignty. Wallet users must trust the platform to manage their funds responsibly. And centralized control contrasts with cryptocurrency’s ethos of decentralization.
Mirakhmed maintains that user growth requires minimizing friction, even if it means limiting independence. “First of all, the onboarding is very simple. Secondly, you already have a few chains on there,” he said.
The wallet is expected to launch in African and Latin American countries in November 2023, followed by a worldwide rollout. But for now, Telegram is prioritizing accessibility through central custody over granting full user ownership.
The crypto community remains divided on custodial services. Supporters argue they’re necessary for mainstream adoption, while critics insist self-custody is essential for financial liberation. As more platforms launch, users must decide if convenience is worth the security tradeoff.
