Is Telegram Slowly Becoming a Hidden Crypto Powerhouse?

30 ส.ค.

Telegram has rapidly positioned itself as a formidable force in the cryptocurrency sector, quietly amassing significant digital asset holdings and generating substantial revenue from crypto activities. Despite its ongoing legal battles and operational losses, the messaging giant is making bold strides in the blockchain space, raising questions about its future role in the crypto industry.

Financial Snapshot: Telegram’s Crypto Revenue and Holdings
Telegram’s 2023 financial report, audited by PwC’s Dubai branch, reveals the company’s strategic pivot towards the crypto market. The firm’s digital asset holdings have surged past $400 million, eclipsing its cash reserves. This impressive figure is largely composed of Toncoin, the native token of Telegram’s blockchain project, The Open Network (TON). With over 40% of its $342.5 million revenue generated from crypto-related activities, Telegram’s financials paint a picture of a tech company deeply intertwined with digital assets.

Despite reporting a substantial operating loss of $108 million, Telegram’s integration of crypto into its business model has proven profitable. The firm’s newly introduced integrated wallet and sales of Toncoin have become significant revenue drivers, showcasing the company’s seamless incorporation of blockchain technology into its platform.

Deep Integration of Crypto Services
Telegram’s commitment to the crypto ecosystem extends beyond mere asset holdings. The integrated wallet, introduced as part of the company’s broader crypto strategy, enables users to store, send, receive, and trade various cryptocurrencies, including Toncoin (TON). The revenue from this service stems from its integration into the social media platform and the provision of continuous access to users. Payments for collectibles like usernames and virtual phone numbers, which can be purchased using Toncoin (TON), further underline Telegram’s active participation in the crypto economy.

However, the most striking aspect of Telegram’s strategy lies in its management of Toncoin (TON) holdings. The company successfully mitigated potential losses by strategically selling a substantial portion of its Toncoin (TON) before a recent market downturn, realizing approximately $243.5 million. This proactive approach underscores Telegram’s active management of its crypto exposure, highlighting its role as more than a passive participant in the market.

Telegram’s Legal Troubles and Market Position
Despite its success in the crypto space, Telegram faces significant challenges, including legal issues. The arrest of its founder, Pavel Durov, in France for allegedly failing to control criminal content on the platform has cast a shadow over the company’s operations. However, Durov’s subsequent release has sparked renewed optimism within the crypto community, signaling that Telegram’s troubles might not derail its ambitious plans.

Telegram’s growing crypto involvement, coupled with its substantial operating expenses of over $450 million, has led to questions about its overall valuation. Despite raising $2.3 billion from high-profile investors, including sovereign wealth funds, the company’s financial sustainability remains under scrutiny. Durov’s initial valuation of over $30 billion seems increasingly optimistic given the firm’s current challenges.

Technical Outlook: TON Token’s Performance
As of the time of writing, the TON token is down 2.79%, reflecting broader market downturns. The Relative Strength Index (RSI) stands at 37.98, signaling an oversold condition and increased selling pressure. Technical analysis indicates that TON’s price is teetering near the $5 pivot. Holding this level is crucial for boosting investor confidence, especially amid Telegram’s ongoing network outages and blockchain challenges.

The TON blockchain has faced issues, including network disruptions where blocks failed to produce, which has sparked concerns among investors. Addressing these technical weaknesses could help solidify TON’s reputation as a potential “Solana killer,” a moniker that highlights its ambitious aspirations within the competitive blockchain landscape.

Challenges and Opportunities
Telegram’s foray into the crypto world is a double-edged sword. On one hand, the company’s deep integration of blockchain and digital assets positions it as a major player in the crypto sector. On the other, its ongoing legal issues, operational losses, and technical challenges present substantial hurdles. Telegram’s active management of its crypto holdings and strategic moves within the market suggest a company keen on navigating these complexities.

The firm’s success will hinge on its ability to leverage its crypto capabilities while addressing internal challenges and regulatory scrutiny. Should Telegram continue to refine its blockchain infrastructure and improve user experience, it could solidify its place as a hidden powerhouse in the crypto world, with the potential to redefine how tech companies engage with digital assets.

Conclusion
Telegram’s journey in the crypto market is a fascinating tale of ambition, risk, and innovation. With its significant Toncoin holdings and integrated crypto services, the messaging app is quietly but powerfully staking its claim in the digital asset space. However, the path ahead is fraught with challenges, and Telegram’s ability to navigate these will ultimately determine whether it can transform from a hidden player into a leading force in the blockchain era.