Telegram’s crypto holdings hit $1.3 billion in the first half of 2024, after a major boost from Toncoin. The platform recorded a massive revenue of over $520 million in the first six months, before the disruption in August after its founder Pavel Durov was arrested in France. Most of the revenue was due to Toncoin’s influence, recording a huge 190% rise since 2023.
Toncoin was Telegram’s internal token when it was first created but is now managed via an open-source community. The switch was due to the legal battle between Telegram and the United States Securities and Exchange Commission (SEC) in 2020. As part of its agreement, Telegram received payment to allow Toncoin to become open for small businesses looking to advertise on the platform.
Telegram’s revenue surge tied to Toncoin
According to official reports, over $250 million, representing half of the entire figure was traced to one transaction. The report also revealed that the company sold digital assets worth $355 million in June, representing most of its first half-of-the-year sales. Since then, Telegram has sold over $350 million worth of Toncoin tokens.
Before Durov’s incarceration, Telegram was on course for its first annual profit. The company posted a profit of $335 million in the first half of 2024 after taxes. However, its $173 million loss means it was more than $342 million in annual revenue, according to Telegram’s estimates.
With the TON blockchain open to the public, projects moving there. There are rumors that some of the projects share ties with Durov, who is still facing several allegations. One such is his refusal to address the constant criminality on the platform. Since his arrest, the token has been dropping, with most people crediting its 10% drop to the arrest of its CEO.
Durov’s multi-billion fortune and other details
Telegram CEO Pavel Durov holds a crypto fortune alongside the messaging platform Telegram. However, reports note that the company’s debt financing funds raised will mature in 2026. Reportedly, the platform has also used some of its funds to purchase bonds for $124 million. The platform also recorded an increase in its advertising revenue, seeing as much as double to hit $120 million.
The platform’s premium subscribers were responsible for about $119 million, a huge figure compared to the $32 million revenue in 2023. An insider source has also revealed that the company has sold some of its crypto assets, taking advantage of the surge in the crypto market. However, most of these assets are linked to Durov, facing charges in France.
The Telegram CEO is facing charges, looking at about 10 years for a single one. He is still on bail but has been mandated to remain in France. As a result, Telegram’s are still raging below face value, although they have recovered from the previous drop after he was arrested. This does not mean they’re in a good place, after trading as low as 87 cents in August.
The company has also informed investors and stakeholders that operations are still going as usual, noting that the development does not affect its activities. It revealed that the person of interest was Durov and not Telegram. The company also defends its practices in content moderation and cooperation with authorities. However, it noted that it is looking into its content review practices and recruiting members to its moderation team.
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