Before the major disruption in August following Durov’s detention, Telegram reported an outstanding $525 million in revenue for the first six months of the year. Half of the profit from the positive report was credited to Toncoin. This marked a remarkable 190% increase compared to the same period in 2023.
Toncoin was initially developed internally by the team at Telegram. However, it is now being advanced by an open-source community. This followed because of the project’s legal issues with the US Securities and Exchange Commission (SEC) in 2020.
According to the agreement, the telecom industry “received remuneration” for allowing Toncoin to serve as the exclusive payment method for small businesses looking to purchase advertising on the platform.
The social media entity reported huge gains in the value of its digital assets in the first half of 2024, which rose to $1.3B compared with nearly $400M at the end of last year.
Telegram crypto holdings tied to Toncoin and game tokens
Official documents indicate that approximately 50% of the revenue, amounting to $225 million, was generated from a singular transaction. According to reports, the corporation made $353 million in the first half of the year’s sales of digital assets in Toncoin, which was in June. Since then, it has sold Toncoins worth another $348 million.
Telegram was headed for its first annual profit before Durov’s detention. The entity posted a post-tax profit of $335 million in the first half of this year. With losses of $173 million, the data exceeds the $342 million in revenues that Telegram booked for the whole year of 2023.
Several groups are now building or investing on the Ton blockchain. It is reported that some have close ties to Telegram and Durov, the founder facing charges over Telegram’s alleged failure to address criminality on the platform.
The token’s price has been volatile since then. Toncoin has lately been trading about 10% lower, which many consider a result of Durov’s legal issues.
Other revenue boosts for Telegram and Durov
Telegram is fully owned by Durov, who owns a multibillion-dollar crypto fortune. However, reports say that the company has raised about $2.4B in debt financing set to mature in 2026. Telegram is also reported to have used some of its overall proceeds to buy back some of its own bonds for $124.5M.
In addition, advertising revenue also roughly doubled to a record $120M in the first half of the year. Premium subscriptions alone brought in $119M, compared with $32M in the same period last year, according to Telegram’s financial disclosures.
An insider familiar with the matter also said that the company had taken advantage of favorable market conditions to sell some of its crypto reserves.
The future of Telegram’s crypto holdings tied to Durov
Durov faces several preliminary charges. One of them can result in up to 10 years in prison, and Durov remains on bail in France.
As a result, Telegrams bonds are still trading below face value. They have recovered from the initial sell-off that followed Durov’s detainment, quoted at 95 cents on the dollar. They also plunged as low as 87 cents in August.
However, in the disclosures to investors, dated October 22, the company wrote that the matter “did not have a material impact on Telegram operations and the group’s business activities,” noting that the allegations targeted its founder rather than the company itself.
Moreover, experts have warned that Telegram, which is incorporated in the British Virgin Islands, could struggle to bring in future advertising revenues. They argued that the entity is now linked to alleged child sexual abuse material and terrorist content.
The company said in the disclosures that it “stands behind its practices in content moderation and co-operation with judicial authorities in strict compliance with the applicable French laws.” It also said it was upgrading its content review practices and expanding its moderation team.
From Zero to Web3 Pro: Your 90-Day Career Launch Plan
