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Solana Labs Acquires Funds to Continue Smartphone Production

Solana Labs, the developers behind Solana, has secured $45 million to advance its initiative of creating the Saga 2 smartphone, following the attainment of 100,000 preorders, as announced on Monday. With the set target achieved, the network is fully committed to distributing the initial batch of the highly coveted phones by the first half of 2025.

The Saga 2 smartphone has witnessed a substantial surge in orders, surpassing 100,000 within a month of the presale launch. The device’s primary appeal lies in its replication of the features of the first version, which saw users receiving airdrops valued significantly higher than the device’s purchase price.

Following a sluggish start, the first Saga smartphone gained momentum after the BONK airdrop spurred demand, initially selling out in the United States before expanding to Europe. Despite selling out, demand for the device remained high, prompting Solana to issue refunds to customers.

Solana Co-founder Notes Improved Circumstances for Saga 2

Commenting on the progress of the Saga 2 device, Anatoly Yakovenko, co-founder of Solana, noted that the development process enjoyed better funding compared to the first version.

The founder said that the saga 2 smartphone will be less expensive as 100,000 customers paid $450 each for their orders. “The economics of selling a more affordable second device are more feasible than the challenging figures that backed Solana’s experimental first phone, initially priced at $1,000.”

Saga encountered difficulties upon the release of its first Saga phone in mid-2022. By late 2023, Solana had sold only 2,500 units of the device, placing it on track to become one of the year’s poorest-selling mobile phones. Consequently, the high production costs and lackluster demand placed the network in an unexpected predicament.

Yakovenko acknowledged that despite the demand, the Saga Phone might struggle to surpass Apple and Google in certain smartphone features. Therefore, the network prioritizes executing the technological aspects related to blockchain correctly.

“It’s incredibly challenging to outperform Apple and Google in terms of camera quality and other technical specifications found in their flagship smartphones. That’s why we place great emphasis on crypto-specific features. He added that they are striving to create something unique that no other device can replicate.

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