Telegram, the messaging app widely used by cryptocurrency enthusiasts, held $400 million in digital assets at the end of 2023, according to a report by the Financial Times.
The report is based on Telegram’s financial statements for that year and indicates a big portion of the app’s revenue came from digital asset activities, particularly from an “integrated wallet” and the “sale of collectibles,” which together accounted for nearly $148 million, or about 40% of the company’s total revenue.
The “integrated wallet” refers to a software feature that enables users to store, send, receive, and trade cryptocurrencies, while the “sale of collectibles” includes items like usernames and virtual phone numbers. These sales are recorded as revenue when the collectible is assigned to the user, and Telegram also earns fees for facilitating sales between users.
Telegram’s connection to digital assets also includes its involvement with Toncoin, a cryptocurrency linked to the TON blockchain. The Financial Times reported that Telegram sold a large amount of Toncoin tokens before a subsequent drop in their price.
The popular messaging app, with around 800 million users, introduced a new incentive program that enables owners of public channels on its platform to earn 50% of the advertisement revenue in Toncoin (TON), the project’s native cryptocurrency. To qualify for this revenue-sharing model, channels must boast a minimum of 1,000 subscribers.
As the third most downloaded messaging app, trailing only behind WhatsApp and Snapchat, Telegram has historically allowed channel owners to monetize their audiences through various methods such as paid posts, membership fees for private channels, and merchandise sales.
The report raises questions about the company’s valuation, which is estimated at $30 billion. Telegram founder and CEO Pavel Durov, who owns 100% of the company, recently faced legal challenges after being indicted by a French court on charges that Telegram’s tools have been used for illicit activities.
Telegram has not commented on these allegations. The app has also gained popularity for hosting crypto games like Notcoin and Hamster Kombat, which operate on the TON blockchain.
