Electroneum released the M1 smartphone at MWC19 Barcelona. The release was met with mixed reviews in the crypto space. Why did this fintech company decide to make a smartphone?
The Electroneum M1
Electroneum's smartphone is not the best phone money can buy. It is not meant to compete with Apple or Samsung. It is meant to be a reliable, affordable option for unbanked people.
The phone runs Android Go and has average specs for a budget smartphone. It retails for about $80. Users that have already tested the phone report that it is sturdy and operates smoothly.
Was it a mistake?
Critics have been quick to say that the M1 was not mentioned when they invested in ETN. They are worried that Electroneum are setting themselves up for failure by entering the highly saturated and competitive world of smartphones.
Others feel the Unbanked cannot afford an $80 phone. They also fear that ICO money will be depleted to fund the M1.
The M1's True Purpose
The M1 is meant solely to act as a marketing tool that builds trust in Electroneum. For example, a shop owner may try to convince an unbanked person to download the ETN Cloud Miner only to be met with skepticism. After all, free money usually spells trouble. This distrust changes when the owner pulls out the M1 and shows the customer that Electroneum is a legitimate company that can be trusted.
This distrust changes when the owner pulls out the M1 and shows the customer that Electroneum is a legitimate company that can be trusted.
Not to mention, the M1 made a splash in the crypto community. It was not common to see ETN on popular websites such as Coindesk and CoinTelegraph. After the announcement, many crypto news outlets covered the release and many Youtube influencers followed. The M1 is a succesful marketing tool that will continue to show it's underlying value.
For those worried about ICO funds, the phone pays for itself while providing a small profit for the team. In no way will M1 production hinder Electroneum.
The M1 is a succesful marketing tool that will continue to show it's underlying value.
Lastly, there is an argument that the Unbanked cannot afford the M1. To be clear, the term "unbanked" need not refer to poor people exclusively. Also, the online community has confirmed that while people may be poor, this does not stop them from enjoying luxuries such as the latest iPhone or Android device. Many of us have seen this in our own localities. Even if they cannot buy it, it builds their trust in the brand.
The Endgame
Ultimately, the M1 has been succesful and will continue to influence the perception unbanked people have of Electroneum. It may not be the top selling, technologically advanced, popular phone on the market, but it will be Electroneum's advocate in the many lands where ETN will be used.
Cover art courtesy of Plankton from the official Electroneum forum.
