Signal’s CEO steps down as questions about its privacy-first image loom large
Brian Acton is the interim CEO
Mobilecoin and Signal’s survival
While most chat apps offer their base service for free, they need money to fund their operations. Some getgobbled up by megacorporations forbillions of dollars,while others have to find different ways.
Last year, apart from raising $1 billion in funding, Telegram introducedlimited ads on its platformto keep the money trickling in. Plus, it might introducepremium stickers and other add-onsin the future.
Signal’s story is slightly different. Acton invested $50 million in the Signal foundation in 2018. Besides that, Signal runs on donations; last year, it introducedtheSignal Sustainers subscription programto raise more money.
While it needs to raise more money, Signal launched a new feature: secure mobile payments. Last April, it started a peer-to-peer payment test in the UK using MobileCoin cryptocurrency, which is backed by Marlinspike. Now, the feature has beenrolled out to all users.
MobileCoin was founded in 2017, and hasraised more than $100 million in fundingso far. When Signal launched its experiment, Marlinspike toldWired, “I would like to get to a world where not only can you feel that when you talk to your therapist over Signal, but also when you pay your therapist for the session over Signal.”
That sounds great on paper,because of the inherent volatility of cryptocurrencies’ value, it becomes hard to adopt that feature. Imagine trying to pay your therapist $100 through MobileCoin, and then realizing the currency you’ve transferred is worth only $70. In just the last month, MobileCoin’svalue plummeted by 37.5%.
There are also questions about the cryptocurrency’sprivacyand itsweird internet radio project(please look at it).As journalist Casey Newton pointed out in his Platformer newsletter, Signal employees have concerns about adopting this coin as it mightinvite anonymous criminal transactions. He added that the coin, which can’t be bought from the US, lacks KYC (Know Your Customer) features that canhold help identify users, and hold people accountable in case of unlawful use of the currency.
Newton also wrote about internal concerns aboutpotential problems— like becoming a communication hub for criminals — that Signal might have to face with growth.
Communication apps like Signal are already feeling the pressure fromgovernmentsworldwidethat want to be able to surveil these networks for law enforcement and national security reasons. Introducing a cryptocurrency will likely add to that burden, and even raise doubts in the minds of the apps’ staunchest advocates as to whether they’ll be able to continue protecting users’ privacy.
As for Marlinspike, what’s next? Maybeweb3-flavored, perhaps?
Story byIvan Mehta
Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.“Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.”
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