How Telegram Made Over Half a Billion Dollars Thanks to Crypto

Introduction

In the first half of 2024, Telegram, a popular messaging app, reported a significant revenue growth of $525 million. The company’s founder, Pavel Durov, attributed this increase to the app’s growing revenue from advertising and subscriptions. However, what’s interesting is that nearly half of this revenue, $225 million, came from a cryptocurrency transaction. In this analysis, we will delve into how Telegram made over half a billion dollars thanks to crypto and what this means for the company’s future.

Revenue Growth from Crypto

According to unaudited financial reports, Telegram’s digital assets rose to $1.3 billion in the first half of 2024, up from nearly $400 million at the end of the previous year. This increase was mainly due to the sale of Toncoin (TON) and capital inflows. The company’s revenue from cryptocurrency transactions was $353 million in the first half of 2024, with a profit after taxes of $335 million.

One significant contributor to this revenue was a deal with an unnamed partner, where Telegram granted Toncoin exclusive status for small businesses to buy advertising on the app. Under this deal, the company “received remuneration” in exchange for allowing Toncoin to be the exclusive method for small businesses to buy advertising on the app. This deal brought in $225 million for Telegram, which is nearly half of the company’s total revenue in the first half of 2024.

Advertising Revenue

In addition to revenue from cryptocurrency transactions, Telegram also saw a significant growth in advertising revenue. The company reported a record $120 million in advertising revenue in the first half of 2024. This increase is attributed to the company’s plans to expand its advertising platform and offer content creators 50% of the revenue from advertising on their channels.

Durov’s Arrest and Its Impact

Despite the recent arrest of Pavel Durov, Telegram’s founder, on charges of criminal activity, the company’s revenue has not been significantly impacted. Durov was detained by French authorities in August 2024 and charged with distributing child pornography, fraud, and other crimes. However, the company has maintained that its content moderation practices and cooperation with judicial authorities are in strict accordance with applicable French law.

Future Outlook

Telegram’s ability to generate revenue from cryptocurrency transactions and its growing advertising revenue make it an attractive company in the market. The company’s plans to expand its advertising platform and offer content creators a share of the revenue from advertising on their channels will likely increase its revenue further. However, the company may face difficulties in future advertising revenue due to its links to sexual violence and terrorist content.

Key Takeaways

• Telegram reported a revenue growth of $525 million in the first half of 2024, with nearly half of this revenue coming from a cryptocurrency transaction.
• The company’s digital assets rose to $1.3 billion in the first half of 2024, up from nearly $400 million at the end of the previous year.
• Telegram’s revenue from cryptocurrency transactions was $353 million in the first half of 2024, with a profit after taxes of $335 million.
• The company’s plans to expand its advertising platform and offer content creators a share of the revenue from advertising on their channels will likely increase its revenue further.
• Telegram may face difficulties in future advertising revenue due to its links to sexual violence and terrorist content.

Predictions

Based on the analysis, here are some predictions for Telegram’s future:

• Telegram’s revenue will continue to grow in the next few quarters due to its growing advertising revenue and cryptocurrency transactions.
• The company’s plans to expand its advertising platform and offer content creators a share of the revenue from advertising on their channels will likely increase its revenue further.
• However, the company may face difficulties in future advertising revenue due to its links to sexual violence and terrorist content.
• The company’s ability to maintain its content moderation practices and cooperation with judicial authorities will be crucial in addressing these concerns.

Conclusion

In conclusion, Telegram’s revenue growth in the first half of 2024 was significantly influenced by its cryptocurrency transactions. The company’s plans to expand its advertising platform and offer content creators a share of the revenue from advertising on their channels will likely increase its revenue further. However, the company may face difficulties in future advertising revenue due to its links to sexual violence and terrorist content.