Telegram's influence in the cryptocurrency market is continuing to expand. According to the Financial Times, Telegram's cryptocurrency holdings surged to $1.3 billion in the first half of 2024, nearly tripling from $400 million at the end of 2023. This change is driven by the sale of the TON (The Open Network) token and a series of strategic transactions, which not only brought considerable profits but also provided financial support for Telegram's founder Pavel Durov amid legal challenges.
Surge in Cryptocurrency Holdings: Telegram's Cryptocurrency Strategy
Telegram has been accumulating TON for a long time, although it has not publicly announced its exact holdings. However, recent reports reveal that its cryptocurrency assets far exceed the previously estimated $1 billion, making it a shining example of corporate cryptocurrency asset management globally. In the first half of 2024, Telegram earned over $350 million in revenue through trading and selling TON tokens, of which $225 million came from transactions with an undisclosed entity.
Profit Model: TON Tokens and Advertising Revenue
The majority of Telegram's cryptocurrency revenue comes from its investment in TON tokens. In the first half of 2024, the company achieved substantial returns by selling some TON tokens and using them as the exclusive payment method for purchasing advertisements on its platform. This move further solidified Telegram's position in the crypto world. However, it is worth noting that the company's exclusive advertising agreement ended on October 1, and it remains to be seen whether Telegram will continue such strategies in the future.
TON Market Volatility: Durov Faces Legal Challenges
However, Telegram's success in the cryptocurrency market has not been without fluctuations. In particular, the value of the TON token is significantly affected by market conditions. For example, in August 2024, the TON price temporarily dropped by 25% to $5.24, which was related to the detention of Telegram founder Pavel Durov by French police. Nevertheless, the TON price has rebounded to $6.32 recently with the market's recovery.
Telegram's Legal Challenges and Global Expansion
Telegram's recent cryptocurrency trading activities are closely related to its founder Durov's legal troubles. In August of this year, Durov was detained by French police due to Telegram's alleged violations of cryptocurrency-related regulations. While Durov expressed shock at the arrest, he stated that Telegram is willing to continue complying with regulatory requirements in markets such as the EU and is willing to exit markets that do not align with its principles. This incident reminds us that finding a balance between compliance and innovation remains an important issue for businesses in an increasingly strict global cryptocurrency regulatory environment.
The Future of Crypto Assets: Telegram and Industry Transformation
It is worth noting that Telegram's cryptocurrency strategy is not just about financial gains; it also drives the corporate operation of the cryptocurrency market. Through the sale and trading of TON, Telegram has become an important player in digital assets, and its extensive user base combined with cryptocurrency greatly enhances its market competitiveness. Furthermore, Telegram's monthly active users are expected to surpass 950 million in 2024, providing strong support for its cryptocurrency strategy.
Overall, Telegram not only occupies a place in the instant messaging field but also continuously strengthens its innovation in Web3 and decentralized finance (DeFi) through the layout of crypto assets. With the rapid development of the cryptocurrency market, Telegram's actions will continue to have a profound impact on the global crypto ecosystem.
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