Solana Mobile Chapter 2 Bags $45M for Development from 100K Pre-orders

UTC by Benjamin Godfrey · 3 min read
Solana Mobile Chapter 2 Bags $45M for Development from 100K Pre-orders
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By offering unique capabilities centered around cryptocurrencies, Solana aims to carve out a niche that sets it apart from traditional smartphone manufacturers.

In a remarkable turn of events, Solana Mobile’s Chapter 2 smartphone has shattered expectations by garnering 100,000 pre-orders in just over a month. This milestone not only represents an extraordinary level of demand but also unlocks $45 million in funding for further development.

The company’s co-founder, Anatoly Yakovenko, disclosed in an interview with CoinDesk that this achievement was pivotal, as it was a prerequisite for initiating the production of a second device.

Solana Mobile’s Journey to Success

Solana Mobile’s journey began nearly a year ago when it introduced its first crypto phone, which struggled to sell out its initial 20,000 units. However, the market changed drastically with the release of Chapter 2, as it quickly garnered immense interest and support from consumers, hitting the coveted 100,000 preorder mark. This rapid success speaks volumes about the growing appetite for crypto-integrated mobile devices.

Anatoly Yakovenko underlined the economic viability of Chapter 2 compared to its predecessor, stating:

“With at least 100,000 customers for Chapter 2 having already paid $450, the economics for selling an affordable second device are more viable than the “brutal” numbers that backed Solana’s experimental first phone, which originally retailed for $1,000.”

The implication of Solana’s recent milestone extends beyond mere sales figures. It solidifies a promising future for Solana Mobile, distinguishing it as the only crypto-enabled phone manufacturer with a loyal customer base. Despite uncertainties in the past, Solana Mobile’s fortunes have taken a positive turn, boosted by the recognition that each phone purchase comes with free tokens, a feature that sparked a sellout frenzy for Saga towards the end of last year.

Much like its predecessor, Chapter 2 will boast custom features tailored to seamlessly integrate cryptocurrency functionalities into the device’s core operations. Yakovenko stressed the importance of crypto-specific features, acknowledging the challenge of competing with industry giants like Apple Inc (NASDAQ: AAPL) and Alphabet Inc’s (NASDAQ: GOOG) Google solely on technical specifications.

By offering unique capabilities centered around cryptocurrencies, Solana aims to carve out a niche that sets it apart from traditional smartphone manufacturers.

Solana Mobile Building Critical Mass of Users

While it is unknown if preorder buyers are motivated by real interest in crypto-enabled smartphones or the allure of prospective profits, the sheer volume of preorders indicates a tangible market need.

With at least 100,000 devices confirmed for production, Solana Mobile is getting closer to reaching a “critical mass of usership”,  a vital milestone for recruiting app developers to its ecosystem, according to Yakovenko.

Yakovenko views gaming as a key avenue for mainstream success and envisions vibrant developer community-building games for Solana’s platform. Solana Mobile offers an appealing alternative for developers seeking greater autonomy and profitability, as its app store does not charge the high fees imposed by industry giants such as Apple and Google.

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