Telegram’s decision to pivot into the world of cryptocurrency and blockchain services seems to be paying off as the app continues to rake in profits from crypto deals and activities of its very own Blockchain.
The social media company pulled in $225 million from one single deal selling exclusive use of its Toncoin native crypto asset.
In 2018, Telegram founder Pavel Durov released a whitepaper for the Telegram Open Network marking the beginning of the pivot to cryptocurrency by the social media app.
The Russian in partnership with his brother aimed to develop a blockchain service that could integrate with Telegram’s messaging service to facilitate fast and scalable transactions.
Pavel Durov was able to successfully draw significant attention and investment through a highly successful initial coin offering (ICO) that raised $1.7 billion for his new project.
Telegram’s crypto movement was born from that moment and the social media app went on to lead the onboarding of millions of newbies into the crypto space.
Telegram Mini Apps and Crypto
Telegram Mini Apps (also known as Telegram Web Apps) are small, lightweight web-based applications that can be integrated directly into the Telegram messaging app. These apps run inside Telegram without needing to be downloaded or installed separately, providing users with a seamless experience within the app itself.
- Mini Apps are part of Telegram’s broader strategy to enhance user experience by offering rich functionality directly within its chat interface, and they are built using HTML, CSS, and JavaScript, which makes them platform-independent and easy to develop.
- Telegram mini-apps have arguably become the most popular component of the social media app after its messaging service.
- The majority of the popular Play-to-Earn games that swept across the crypto industry this year existed as Telegram Mini apps.
- Crypto game projects like Hamster Kombat, Tapswap, Notcoin, and Blum were all Telegram mini apps and led the largest onboarding of new users to cryptocurrency.
These play-to-earn projects are powered by Telegram’s TON blockchain making TON one of the busiest blockchains this year.
Telegram’s cryptocurrency bet has proved to be a masterstroke with the social media app raking in millions of dollars from crypto deals despite the arrest of its founder a few months ago.
Telegram made $225 million from one Crypto partner deal
Telegram pulled in a staggering $225 million from one single deal with an unnamed app. Telegram did this by granting Toncoin exclusive status for small businesses to buy advertising on the unnamed app.
- In the deal, Telegram received remuneration in exchange for allowing the cryptocurrency Toncoin to be the exclusive method for small businesses to buy advertising on the app.
- The $225 million compensation from the deal made up nearly half of Telegram’s $525 million revenue recently reported by the firm
- This reveals the significant contribution Crypto makes to the overall earnings of the social media app.
- Telegram makes money from crypto in other ways. In the first half of 2024, the social media company recorded $353 million in cryptocurrency transactions and reported a profit after taxes of $335 million, demonstrating its financial muscle.
According to a Crypto. News report, Financial reports reveal that Telegram’s crypto holdings are on the rise. The social media company’s digital assets rose to $1.3 billion in the first half of 2024, up from nearly $400 million at the end of the previous year. The surge is heavily influenced by the sale of its native token, Toncoin.
Telegram’s Finances held up by crypto earnings
A Financial Times report revealed that Telegram’s finances are in good shape despite the arrest of its founder thanks to the company’s crypto earnings. The FT reported that Telegram has told investors that the arrest of its founder “Pavel Durov” has no “Material Effect” on the app and the company.
- Pavel Durov was arrested and detained in France on charges of Child pornography and other illicit activities taking place on his platform. He was released on bail conditions and mandated to visit the police every two weeks.
- Telegram remains the only leading social media app to Pivot fully in crypto. Facebook, Instagram and WhatsApp under Meta are still not openly assimilating the technology.
Elon Musk’s who owns X is a closet crypto fan and it wouldn’t be much of a surprise of X incorporates crypto fully into its services in the coming years.