Telegram, the messaging app co-founded by Pavel Durov, has a significant reliance on cryptocurrency for its revenue. The company’s 2023 financials reveal that over 40% of its revenue comes from crypto-related operations, specifically its integrated wallet and the sale of collectibles. This reliance on digital assets comes under scrutiny as Durov faces legal charges in France for allegedly failing to control criminal content on the platform.
Telegram’s integrated wallet is a software program that allows users to store, send, receive, and trade crypto assets. The company also sells collectibles in exchange for Toncoins, a digital asset based on the TON blockchain, which was originally developed in-house at Telegram. These digital assets make up a large portion of Telegram’s assets, valued at nearly $400 million.
Despite its heavy reliance on crypto and substantial liabilities, Telegram, wholly owned by Durov, has raised over $2.3 billion from blue-chip investors. The company’s valuation, according to Durov, exceeds $30 billion.
The arrest of Durov has raised questions about the future of Telegram, especially given its significant reliance on cryptocurrency. The drop in Toncoin’s TON/USD price following Durov’s arrest further highlights the potential impact of this legal situation on the company’s operations. However, Telegram’s ability to attract substantial investment indicates confidence in its long-term prospects.
The growing influence of digital assets in the tech industry is evident in Telegram’s business model. As the company navigates the challenges posed by Durov’s legal troubles, its future success may hinge on its ability to manage its cryptocurrency-based revenue stream and maintain investor confidence.
