Telegram, a messaging platform favored by cryptocurrency enthusiasts, has come under the spotlight for its substantial digital asset holdings. According to a report on Friday, Telegram had $400 million in digital assets at the end of 2023. This revelation sheds light on the significant role that cryptocurrencies and blockchain technology play in the company’s financial ecosystem.
The report cites Telegram’s 2023 financial records, highlighting that nearly 40% of the app’s annual revenue came from digital asset-related activities. Specifically, these revenues were listed under “integrated wallet” and “sale of collectibles.” Together, these two categories brought in approximately $148 million. The “integrated wallet” feature, which allows users to store, send, receive, and trade crypto assets, was a major contributor to this revenue stream.
Telegram’s involvement in the sale of collectibles also played a crucial role in its financial performance. These collectibles, including usernames and virtual phone numbers, are sold to users, with the revenue recognized once the collectible is assigned. Additionally, Telegram facilitates the resale of these collectibles between users, earning fees from these transactions. This business model has diversified Telegram’s revenue streams and entrenched the platform deeper into the digital economy.
The report also looked into Telegram’s involvement with Toncoin, a cryptocurrency connected to the TON blockchain that is closely associated with the platform. Telegram sold a large number of Toncoin tokens before a significant price drop, leading to questions about the timing and impact of these sales on the wider crypto market.
Telegram CEO Under Formal Investigation; Bail Set for $5.56M
Telegram’s founder and CEO, Pavel Durov, is facing legal troubles. A French court has recently charged Pavel Durov, alleging that Telegram’s tools and services have been used to facilitate illicit activities. Durov still fully owns Telegram after these legal issues, even though the report estimated it to be worth more than $30 billion. The company has also raised $2.3 billion in external funding from investors such as sovereign wealth and hedge funds.
Telegram’s user base, reported to be nearing 1 billion, continues to grow, further solidifying its position in the digital world. The platform’s recent popularity surge could be partly attributed to crypto-related games like Hamster Kombat, which utilize the TON blockchain. As Telegram’s role in cryptocurrency expands, its financial practices and leadership will likely continue to draw scrutiny.
