Telegram transforms: From messaging app to blockchain powerhouse

As someone who has spent countless hours navigating the digital landscape, I find Telegram’s latest move into the realm of cryptocurrency and decentralized applications truly fascinating. Having dabbled in various aspects of this ever-evolving world myself, it’s clear that Telegram is positioning itself to be a significant player in the industry.

Initially introduced in 2013 as a straightforward messaging application, Telegram has since grown to become a significant figure in the world of cryptocurrencies. Nowadays, it’s also associated with the TON blockchain, demonstrating its integration within this digital currency landscape.

In a swift rise to prominence, the privacy-focused and speedy messaging app Telegram was launched by siblings Nikolai and Pavel Durov.

Moving forward, I found myself witnessing a remarkable metamorphosis within the realm of Telegram. It transitioned from being primarily a communication tool into a pivotal platform for cryptocurrency users and applications.

In this piece, let’s follow Telegram’s path, starting with their early exploration of blockchain using the TON Blockchain, moving on to their disputes with the U.S. Securities and Exchange Commission, and now examining their significant impact within the cryptocurrency community.

Table of Contents

Telegram origins and shift to crypto

Previously mentioned, Telegram initially emerged as a messaging application, renowned for its robust security measures and intuitive design. It was distinguished by its encrypted conversations and the ability to accommodate large groups.

In 2015, Telegram’s launch of bots represented a major advancement. Now, users can automate various tasks, oversee group management, and even engage in intricate conversations with these bots.

Over time, Telegram expanded its features, adding voice calls in 2017 and video calls in 2020, thus improving its capacity for effective communication.

The development progressed as channels were introduced, offering a novel method for users to spread their messages to vast groups. Subsequently, this tool was refined with the addition of ‘Stories for Channels’, a feature enabling users to share temporary content using innovative dual-lens capabilities and customizable privacy settings.

Additionally, it established a clear and equitable raffle mechanism across the channels, allowing participants to potentially secure tangible rewards.

Yet, the Durov siblings aspired for more than just a messaging service with Telegram. Their ambition was to develop a decentralized system capable of revolutionizing how individuals manage digital interactions and financial transactions.

As a forward-thinking crypto investor, I embarked on an exciting journey that culminated in the birth of the Telegram Open Network blockchain. My objective was crystal clear: to construct a robust, high-speed blockchain that could effortlessly handle millions of transactions every second. To achieve this, it was crucial for the blockchain to be intimately intertwined with Telegram’s user-friendly messaging platform, making it an integral part of everyday communication.

As a seasoned developer with years of experience in the blockchain industry, I find the concept of the new project intriguing. The proposed features such as decentralized applications, smart contracts, and a native cryptocurrency named Gram, resonate with my expertise and interest. In my career, I’ve seen the transformative power of these technologies, and I believe that they have the potential to revolutionize various sectors, from finance to supply chain management. The project’s promise to introduce these features is not just an empty claim; it’s a bold step towards a future where technology can create real-world impact. I’m excited to see how this project unfolds and how it will shape the landscape of blockchain technology.

Developing the TON blockchain

As a researcher delving into the world of blockchain technology, I found myself captivated by the emergence of the TON Blockchain in 2018. This journey began when Pavel Durov unveiled his comprehensive whitepaper, detailing the innovative technological leaps and promising potential this platform offered.

Initially conceived for incorporating cryptocurrency and blockchain functionalities within the Telegram platform, TON was engineered with scalability as a key consideration. The goal was to manage millions of transactions every second, an ambitious target they intended to meet through a distinctive multi-blockchain design and sharding technique.

The system divides the blockchain into a main chain that oversees the entire network, as well as several individual chains called work chains, each functioning autonomously.

In order to bring this vision to life, Telegram aimed to gather funds via an Initial Coin Offering (ICO). Prior to this, the company managed to secure approximately $1.7 billion from 175 investors during a private sale of their native Gram token.

Despite initial success, the good times didn’t last long. Shortly following the presale, the U.S. Securities and Exchange Commission began scrutinizing the platform.

Legal battle with the SEC

Last October, the Securities and Exchange Commission (SEC) accused Telegram of running an unregistered securities sale when it offered Gram tokens for purchase. According to the SEC, these tokens fell under the category of securities and thus required registration according to American securities regulations.

The legal dispute reached its peak in March 2020 as a U.S. federal court made a groundbreaking judgment, siding with the Securities and Exchange Commission (SEC) and stopping the circulation of Gram tokens.

Consequently, Telegram decided to delay and ultimately scrap their project in May 2020. They also consented to refund the funds collected during the pre-Initial Coin Offering (ICO) to the investors and paid a $18.5 million fine as part of a civil settlement.

As a seasoned cryptocurrency enthusiast and investor with over a decade of experience in this dynamic field, I have witnessed firsthand the tumultuous journey of the crypto industry. The recent decision affecting Telegram, which sent ripples throughout the broader ecosystem, serves as another stark reminder of the regulatory hurdles that blockchain projects must navigate.

After Telegram withdrew, a team of autonomous programmers took over and persisted in developing the once called TON, now known as The Open Network. This continuation of work guaranteed the project’s longevity.

The TON Foundation, a charitable entity headquartered in Zug, Switzerland, now oversees and facilitates its growth. Steve Yun holds the position of president within this organization, while Andrew Rogozov, an original founder and former CEO of the Russian social media platform VK, is also part of it.

During the years 2021 and 2022, the TON community primarily concentrated their efforts on enhancing the network’s structure, introducing dynamic sharding, and perfecting their proof-of-stake agreement system.

Telegram’s continued support and integration

Although no longer the designer of TON‘s development, Telegram has persisted in backing the platform. For example, in September 2023, the messaging app, which boasted over 800 million users at that time, incorporated the TON Space self-managed wallet into its system.

In March, we implemented a new system for sharing advertising revenue, and since then, payments have been made only in Toncoin (TON), which is the successor to Gram. This move has encouraged more interaction within the TON ecosystem.

In September 2023, Telegram formally supported TON, labeling it as their “preferred web3 foundation.” This decision has ignited curiosity among investors and resulted in significant growth for the TON token.

On May 27, 2024, the combined worth held in the TON network exceeded $300 million, reaching an important milestone driven primarily by a rewards program initiated by the TON Foundation for its community members.

Telegram’s current role in crypto

Despite not successfully establishing the TON network on its own, Telegram remains instrumental in the cryptocurrency sphere. Now serving as a primary meeting point for the crypto community, this messaging platform fosters conversation, collaboration, and knowledge exchange.

Cryptocurrency enthusiasts often utilize Telegram groups and channels for sharing updates, trade tips, and fostering a sense of community. These platforms play a significant role in the digital asset world.

Furthermore, the platform’s dominance in the cryptocurrency world has been reinforced by the addition of novel functionalities tailored for crypto enthusiasts. These include an internal marketplace within the application and links to well-known digital wallets like Trust Wallet.

Through a partnership with Trust Wallet, Telegram’s extensive user community will be tapped into, primarily for the development of gaming finance and decentralized applications (dApps). Additionally, it is said that this collaboration could potentially enable the transfer of TON tokens between the 100 million users of Trust Wallet.

Additionally, it was revealed that TON plans to integrate Tether (USDT) tokens onto its platform, enabling Telegram users to transfer this stablecoin seamlessly within their app.

The announcement about the specific progress significantly increased TON‘s worth, causing it to reach $7.63 on April 11, which is an increase from around $2.21 from a year prior, based on information provided by CoinGecko.

Currently, one TON token is being traded at approximately $5.46. This puts the total worth of this cryptocurrency at around $13.7 billion, placing it as the 10th largest digital currency by market capitalization. It trails slightly behind Dogecoin (DOGE).

Rise of mini-apps and the tap-to-play ecosystem

On July 31st, Telegram unveiled plans to launch an in-app web browser, set to enhance its blockchain features and overall user experience. This revelation came after their mini app store debut, led by CEO Pavel Durov, earlier in the month.

As an analyst, I recently noticed that the latest Telegram update has introduced a Mini App Store within its search function. This new feature allows users to explore a variety of popular mini-apps. Notably, these featured mini-apps now showcase their monthly active user count, providing insights into their popularity. Additionally, developers have the opportunity to enhance their bots’ profiles by adding screenshots and video demos, offering potential users a preview of the functionalities before installation.
— Telegram Messenger (@telegram) August 3, 2024

With this fresh browser, Telegram’s massive user community can now explore TON sites, a space dedicated to decentralized web pages. Notably, the co-founder of Telegram emphasized that this browser comes equipped with functions similar to conventional web browsers and seamlessly combines browsing the web with messaging.

Furthermore, you have the option to reach Telegram’s mini app store by utilizing the search function within the app itself. As per the recent announcement, approximately 500 million out of Telegram’s total 950 million users engage with mini-apps on a monthly basis. Now, these users can easily locate all their mini-apps in one convenient space.

The ecosystem recently unveiled “Stars,” a fresh in-app currency, introduced on June 7. Users now have the ability to transfer these Stars to friends or utilize them for transactions inside mini-applications. Later on, these Stars can be swapped for Toncoin.

As a crypto enthusiast, I’ve been thoroughly impressed with the success of Telegram’s mini-apps. Applications like Notcoin (NOT) and Hamster Kombat have garnered a massive global following. In the case of Notcoin, users can earn tokens by participating in social challenges, which has led to an astonishing 35 million users in just five months. At the time of writing, Notcoin boasted a market cap of $1.15 billion, showcasing its immense popularity and potential.

As a game analyst, I can attest that Hamster Kombat, a crypto exchange management simulation, is certainly not lagging behind. This remarkable web3 application has rapidly established itself as one of the most quickly expanding platforms, with reports indicating over 300 million users since its debut in March 2024.

The project intends to initiate a substantial distribution of its own token, HMSTR, through an airdrop on the TON blockchain, which they referred to as the “historically largest airdrop within the realm of cryptocurrency.”

According to crypto.news reports, Hamster Kombat intends to allocate at least 60% of the total HMSTR tokens to users playing the game on Telegram.

🫶🏽🐹
— Hamster Kombat (@hamster_kombat) July 31, 2024

As a researcher exploring the dynamic world of mobile apps, I’ve come across an intriguing mini-app called Catizen, which debuted alongside Hamster Kombat. Remarkably, this app has managed to garner over 27 million active users, a feat that caught the attention of HashKey Capital, a prominent crypto venture firm based in Hong Kong. Consequently, they made an investment in the publisher of Catizen, Pluto Studio.

While there’s much anticipation, the delay in launching the HMSTR and CATI token airdrops on the TON blockchain in July has led to some disappointment among users, as these events have now been rescheduled.

1. Citizen Cat stated that obstacles in organizing transactions, maintaining sufficient trading activity, addressing regulatory concerns, and other planning complications were causing the delay. In a similar manner, Hamster Kombat disclosed that the intricacy of the technical assignment had led to the postponement of their token launch.

Looking ahead

Telegram’s entry into the cryptocurrency and digital assets sector underscores its ambition to establish a complete digital environment. Its strategy for monetization and the thriving mini-apps suggest that it aims to expand further in the realm of cryptocurrencies.

It appears that Telegram might be considering going public through an Initial Public Offering (IPO). In a recent interview, Pavel Durov, the app’s founder, shared details about the messaging platform’s financial plans, hinting at the possibility of an IPO.

Moreover, Durov shared with the Financial Times on March 11 that Telegram plans to achieve profitability as early as 2025, potentially even before then.

Starting from 2021, Telegram managed to secure $2 billion through bond sales. The bond investors are rumored to be eligible for a 10-20% reduction in price during an Initial Public Offering (IPO), should it take place before March 2026.

Telegram’s transformation from a simple messaging service into a key participant within the cryptocurrency sector underscores its knack for adapting and pioneering new ideas. In the face of regulatory obstacles and hurdles, it continues to serve as an essential hub for the crypto community.

2024-08-10 20:26