Telegram held $400 million worth of cryptocurrency by the end of 2023
Date: 2024-09-02 Author: Henry Casey Categories: BUSINESS
According to its financial report for this year, Telegram held $400 million worth of digital assets on its balance sheet by the end of 2023.
The number of Telegram premium users, which stood at about four million at the end of 2023, increased to more than five million by mid-2024, according to the Financial Times.
Despite this growth, the company has faced serious financial difficulties.
While the messenger generated $342.5 million in revenue, it still posted an operating loss of $108 million for the year.
40% of Telegram’s revenue came from cryptocurrency-related activities
A significant portion of this revenue, about 40%, came from digital asset-related activities, including an “integrated wallet” and the sale of digital collectibles.
The integrated wallet, as listed in Telegram’s financial reports, allows users to store, send, receive, and trade various cryptocurrencies directly within the app.
This feature likely contributed to Telegram’s significant crypto assets.
Additionally, the company’s revenue stream was boosted by the sale of digital collectibles, such as usernames and virtual phone numbers.
Telegram not only sells these collectibles, but also facilitates transactions between users, earning fees for its services.
The messenger’s global presence was also noticeable in 2023, with India leading the way in Telegram downloads, recording 83.85 million users, according to Statista.
The United States came in third with 29.92 million downloads.
The company suffered a major blow on August 24 when CEO Pavel Durov was arrested after landing at Le Bourget Airport near Paris.
Durov faces serious charges including terrorism, human trafficking, conspiracy, fraud, and money laundering.
His arrest, which led to his court appearance on August 28, sent shockwaves through the cryptocurrency market.
Toncoin (TON), the native cryptocurrency of The Open Network originally developed by Telegram, has seen significant volatility since Durov’s arrest.
The coin’s price has fallen from around $6.70 to $5.30 in a week, a decline of more than 21%, according to CoinMarketCap data.
In addition, TON’s market cap has fallen nearly 2% to $13.42 billion.
Durov released on $5.56 million bail
Meanwhile, French authorities have released Durov on bail under strict conditions, including paying €5 million, reporting to police twice a week, and staying within French borders.
Paris prosecutor Laure Becco said the judge had found sufficient grounds to formally investigate all the charges for which Durov was initially detained.
These charges include alleged complicity in running an online platform that facilitates illegal transactions, distributing child sexual abuse material, drug trafficking, fraud, failure to cooperate with authorities, money laundering, and providing cryptographic services to criminals.
However, a video posted by Russian state news agency RIA on Telegram and later on X appears to show Durov, dressed in black, wearing a baseball cap and sunglasses, leaving the prosecutor’s office and getting into a car on Wednesday evening.
