Table of Contents
Telegram has emerged as a major player in the cryptocurrency market. After all, its crypto assets reached 1.3 billion USD in the first half of 2024 — a significant increase from 400 million USD at the end of 2023.
The company’s earnings from cryptocurrency holdings, revenue from Toncoin sales, and the termination of the exclusivity agreement with Toncoin have significantly strengthened the company’s finances, the information was released by the Financial Times newspaper.
Despite its growth, the Dubai-based messaging giant is also facing serious turmoil. After all, its founder and CEO, Pavel Durov, is facing legal challenges in France. Durov was arrested in France in August over allegations related to criminal activity on the Telegram platform. And that has shaken investor confidence.
Telegram Crypto: Where Did the 1.3 Billion USD Come From?
According to the company’s financial disclosures, the platform’s cryptocurrency assets tripled in value during the first half of 2024, reaching 1.3 billion USD by the end of that period. The growth is mainly related to Telegram selling 353 million USD worth of digital assets in the first six months of this year.
Additionally, the company further monetized Toncoin by securing a 225 million USD exclusivity deal. This made the cryptocurrency the only method for small businesses to purchase ads on its platform.
The deal ended on October 1. However, it helped Telegram significantly increase its revenue during the period it was active. Sources revealed that Telegram tactically capitalized on favorable market conditions to sell a portion of its cryptocurrency holdings.
Therefore, the company was able to increase its revenue without compromising its long-term financial strategy, focusing on advertising and subscriptions. In total, Telegram reported 525 million USD in revenue in the first half of the year. This represents a 190% increase compared to the same period in 2023.
Advertising revenue nearly doubled to 120 million USD, while premium subscriptions contributed 119 USD million, up from 32 million USD the year before.
However, even with these gains, Telegram remains exposed to fluctuations in Toncoin’s market value. The coin’s price fell by 25% after Durov’s arrest. However, it recovered after a general rally in cryptocurrencies. This market movement occurred after Donald Trump was elected as US president.
On November 24, Toncoin reached a high of 6.32 USD. It is currently trading around 5.70 USD.
Legal turmoil and operational challenges
Telegram’s financial gains have been overshadowed by the legal challenges facing its founder. French authorities detained Pavel Durov in August as he arrived at Le Bourget airport.
Durov faces multiple charges over Telegram’s alleged failure to curb illicit activity on its platform, including child abuse material and terrorist content.
Although Durov has been released on bail, he remains banned from leaving France while the investigation is ongoing. He expressed shock at his arrest, citing Telegram’s compliance with European Union regulatory requirements and cooperation with law enforcement authorities.
Durov also reiterated his willingness to exit markets that conflict with the platform’s principles. The company was quick to assure investors that Durov’s legal troubles would not affect its operations.
However, the messaging app continues to face heavy scrutiny from authorities over its moderation practices. To address regulatory concerns, Telegram is now expanding its content review team and updating its policies.
Telegram’s financial disclosures have solidified its status as one of the most downloaded apps in the world. After all, it had over 950 million monthly active users in 2024.
The company has also demonstrated resilience with successful capital markets operations. For example, it used part of its cryptocurrency earnings to buy back $124.5 million in bonds, whose value has recovered after the post-Durov arrest slump.
Additionally, Telegram expects to conduct an initial public offering in 2026 — that is, it intends to go public. It also remains focused on diversifying revenue streams through advertising, subscriptions, and digital assets.
What is Toncoin (TON)
Toncoin, also known as TON, is the native cryptocurrency of the Telegram Open Network blockchain. However, after Telegram shut down the project, its network was renamed The Open Network — thus keeping the original acronym.
The TON network emerged as a third-generation blockchain option. Therefore, its developers focused on some specific qualities, such as scalability, flexibility, and superior speed.
The Toncoin cryptocurrency serves as a reference for remunerating network validators. It is also used to pay fees on transactions and in the various decentralized applications (dApps) that the network supports.
TON was created by Nikolai and Pavel Durov, the founding brothers of Telegram. It allowed the app to incorporate new features and expand the app’s user base.
The network relies on a Proof of Stake (PoS) consensus mechanism, supporting multiple blockchains, or even working blocks. This makes it highly scalable, capable of processing millions of transactions per second.
Furthermore, TON introduced the concept of “sharding”. This feature allows the network to be divided into multiple fragments. This means that transactions are processed much more efficiently.
Telegram prefers public offering over private sale
In March of this year, Telegram founder Pavel Durov indicated his interest in conducting an initial public offering of the company. In the same statement, he ruled out the possibility of a private sale.
According to Durov, at the time, Telegram had 900 million monthly active users and was capable of generating revenue of “hundreds of millions of dollars.”
Durov also revealed that the company had received valuations of over 30 billion USD from potential investors, including large global technology funds. However, he decided not to sell the platform in order to maintain his independence as the sole owner of the business.
“The main reason we started monetizing is because we wanted to remain independent.”
However, according to the latest information, Durov will carry out his plan for a public offering by 2026.
- CryptoQuant Analyst: Bitcoin Nowhere Near Its Peak – Buckle Up, Hodlers! - December 21, 2024
- Chainalysis: $2.2 Billion Lost to Crypto Hacks in 2024 - December 21, 2024
- Bank of Japan leaves interest rate unchanged: Impact on the macroeconomy and the crypto market - December 20, 2024
