- Pavel Durov’s arrest on Aug. 24 heightens Telegram’s financial woes, spotlighting the app’s deep ties to the crypto market.
- Telegram sold $243.5M in Toncoin before a major price drop, showcasing its strategic approach amid financial challenges.
- Despite Durov’s release, Telegram’s $108M operating loss in 2023 raises questions about the company’s long-term stability.
Government officials are closely monitoring the company Telegram. Following the arrest of the Chief Executive Officer of Telegram Pavel Durov on August 24. The police had arrested Durov at the airport in Le Bourget, west of Paris, on the basis of money laundering, terrorism, and trafficking charges. His arrest has made the organisation anxious and has brought a bad name to the already operationally and financially troubled company.
Read CRYPTONEWSLAND on
google news
Telegram’s Financial Struggles in 2023
Telegram’s financial health reveals a complex picture. In 2023, it posted an operating loss of 108 million dollars, while revenue was 342.5 million dollars. Surprisingly enough, about 40% of that revenue was obtained through digital asset-related activities, including the “integrated wallet” and sales of collectibles.
This highlights the company’s involvement in the crypto sector. Telegram reportedly held $400 million in digital assets by the end of 2023, underlining its strategic focus on this market.
Moreover, Telegram’s digital asset strategy has been both proactive and cautious. The company sold a substantial portion of its Toncoin (TON) holdings, amounting to $243.5 million, before a price drop.
This strategic move likely mitigated potential losses from Toncoin’s recent volatility, as its price fell more than 21% following Durov’s arrest. Despite this, market indicators suggest a possible rebound for Toncoin, with traders viewing the price dip as a buying opportunity.
Challenges Amidst Crypto Involvement
Furthermore, Telegram’s operating costs—which will surpass $450 million in 2023—complicate the company’s position in the cryptocurrency industry. Even though the corporation raised nearly $2.3 billion in convertible bonds from well-known investors, its financial health is still in doubt. Although Durov had previously estimated the company’s valuation to be over $30 billion, these figures cast doubt on the sustainability of that estimate.
Telegram’s resiliency is seen in its careful management of digital assets and its dedication to user privacy. Despite the ongoing difficulties, the company’s substantial involvement in cryptocurrency activities places it as a major participant in the industry.
Although the community is feeling more upbeat following Durov’s recent release, it is still unclear how this will affect Telegram’s operations in the long run and its reputation in the cryptocurrency.
Crypto News Land, also abbreviated as “CNL”, is an independent media entity – we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
