Preface
Pantera Capital is pleased to announce its latest investment in TON, a layer 1 blockchain network originally designed by Telegram and continued to be developed by the open source community. We believe TON has the power to introduce cryptocurrency to the masses as it is widely used on the Telegram network. Telegram's future-proof, fast, and secure messaging platform has over 900 million monthly active users for personal and team communications, mass community building, content sharing, and more.
By leveraging Telegram’s massive user base and seamless user experience, as well as the vibrancy of the emerging TON ecosystem, we believe TON has the potential to become one of the largest crypto networks.
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Combining the spirit of Web3 with mass distribution
Among the world’s leading messengers, Telegram stands out as a platform that not only embodies much of the ethos of cryptocurrency, but also has significant distribution. Telegram’s monthly downloads regularly exceed its closest alternative, Signal, by 10x, with over 36.7 million downloads in January 2024.
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Telegram vs Signal: Monthly Downloads, January 2024
What about other messaging apps? Telegram is the only major platform that faces no regulatory barriers to incorporating Web3 into open blockchain networks. While Facebook’s Messenger previously attempted to integrate crypto payments with Libra, they ultimately faced regulatory hurdles from the United States, leading to a complete shutdown. WeChat previously attempted to integrate the digital yuan’s CBDC payments, but the system was limited in scope and developers did not have the ability to create permissionless apps.
We believe Telegram is well-positioned to bring cryptocurrency into the mainstream world due to its shared Web3 ethos and wide distribution with the crypto world.
A scalable platform built for hundreds of millions of people
TON is a blockchain initiative developed by Telegram that aims to leverage the messaging app's extensive user base to create a decentralized network capable of supporting a variety of applications. TON has a multi-component ecosystem that includes the TON Blockchain, TON Storage, TON DNS, and TON Services, all of which are integrated together to operate seamlessly.
The system's backbone, the TON blockchain, is built for high performance and scalability, processing transactions quickly thanks to its dynamic sharding mechanism. This architecture ensures that the network can process millions of transactions per second and scale efficiently as the number of users grows, making it an ideal choice for developers aiming to launch applications for hundreds of millions of users without compromising speed or security.
![](https://public.bnbstatic.com/image/pgc/202405/7b850865b357c7bd1f01a877a86aa035.png)
TON’s dynamic sharding enables a scalable network for millions of users
Easy entry into the world of crypto
Getting users to use crypto applications is often difficult. New users need to write down a 24-word secret key and store it in a safe place. But what if they forget their password? How do they send or receive money from other users? Copying and pasting a public key might not be the best experience.
Telegram has simplified many of the complexities through the Top.co wallet in Telegram (i.e. Telegram Wallet), allowing users to seamlessly connect to mini-programs. Users can easily buy, sell or manage tokens and NFTs in one interface and access them directly from Telegram settings and personal chats.
The wallet in Telegram features both escrow and self-custody management based on TON, allowing all users to enjoy an easy onboarding experience while giving experienced users the option to fully control their own keys. With TON's self-custody wallet, users do not need to remember mnemonics; instead, they can simply use Telegram and email as a backup.
![](https://public.bnbstatic.com/image/pgc/202405/0f3dd73a3c330fd971b4d1e33a5ad0cf.png)
Top.co’s Telegram Wallet Has 15 Million Users and Counting
The era of encrypted mini programs
TON’s thriving ecosystem leverages Telegram’s innovative design and large user base. More than 360 million users each month use what Telegram calls "mini programs," which include chatbots and mini-games. With TON, we expect that integrating cryptography into these “mini-programs” will significantly enhance the user experience for hundreds of millions of users. There are over 300 projects on TON, most of which have built applets on Telegram, accessible through the Telegram App Center.
Earlier this year, we observed how memecoin trading tools like BonkBot were generating tens of millions of dollars in revenue through Telegram’s user interface. TON-based applications such as StormTrade now allow users to trade perpetual contracts, cryptocurrencies, stocks, and shares using the same interface. StormTrade is trading over $10 million per day, and we believe similar TON-native Telegram bots will become the preferred user experience for many traders.
Telegram is home to viral social and gaming apps. Early experimental Telegram games like Pixels and Fanzee Battles attracted millions of users in a matter of days, demonstrating the platform’s huge potential for user engagement. Catizen, a cat-themed mini-game platform built on TON, currently has over 4 million users, with over 700,000 playing daily. Notcoin, a social app built on TON where users compete to mine the digital currency Notcoin, has quickly attracted over 30 million users in one of the fastest cryptocurrency adoption events ever.
The TON Foundation recently announced their incentive program which will reward the development of successful TON applications. We believe this will foster the creation of exciting new crypto-apps that have the potential to appeal to the masses.
Unlock new ways to make money
TON is providing the Telegram community with multiple ways to monetize, share, and grow their businesses. As a decentralized marketplace on the TON network, Fragment provides a platform where users can trade collectibles like virtual phone numbers and custom Telegram usernames. Fragment has already facilitated over $350 million in sales of custom usernames and virtual phone numbers. And this is just the beginning. In the near future, the 730 billion Telegram stickers that have been sent may be converted into NFTs. These NFTs will then be available for purchase and sale through the TON blockchain.
Telegram has taken a significant step forward by integrating revenue sharing with content creators and channel owners through its TON blockchain-based Fragment platform. The move marks a shift away from the traditional social media model by directly allowing these creators to earn income from advertising revenue on their channels. This approach not only rewards content creators, but also fosters a closer relationship between the platform and its users, promoting a fairer distribution of economic benefits within the digital ecosystem.
Native stablecoin payment
On April 19, 2024, Tether announced the deployment of its stablecoin USDt on the TON blockchain and Telegram wallet. This development represents a major advancement for the crypto industry as it allows hundreds of millions of users to seamlessly send and receive stablecoins through the Telegram platform, making payments as easy as using Venmo or Apple Cash.
The scalability of the TON network allows for a flat fee of approximately $0.10 per transaction between two users, which is 66% cheaper than other crypto payment platforms. In addition, built-in deposit and withdrawal channels are provided, including bank transfers and exchanges, to further facilitate access and use.
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Stablecoin payments on TON
We believe that stablecoin payments on Telegram wallets will be particularly important for individuals in developing countries who often lack access to banking services and are forced to use complex crypto user interfaces to store and transfer funds. With stablecoins deployed on the TON network, cryptocurrency is taking a major leap towards the vision of programmable peer-to-peer money and a globally accessible decentralized financial system.
in conclusion
We believe the TON network is still in its early stages and we are excited to witness the adoption of its ecosystem and new features by the Telegram user base.
At its core, Telegram embodies the spirit of cryptocurrency: an open, free network accessible to all. With TON, Telegram has achieved a symbiotic relationship where scalable smart contract functionality and a powerful payment network enable groundbreaking capabilities not possible in a Web2 environment.
Given its massive user base, scalable infrastructure, thriving mini-app ecosystem, and native stablecoin trading, TON fully taps into the potential of a network with 900 million active users.