Telegram’s Bold Bet on Crypto–Social: A New Model for Messaging Platforms

Telegram is quietly executing one of the most ambitious crypto integrations ever attempted by a mainstream social platform. By weaving the TON blockchain and its native currency Toncoin into its ecosystem, from wallet functions to an on-chain ad platform, Telegram is testing whether blockchain can finally go mainstream through everyday messaging.

The Open Platform (TOP), a developer of tools for the encrypted messaging platform Telegram’s blockchain ecosystem, has just announced that it has raised US$28.5 million in an early-stage funding round. The series A was led by Rabbit Capital with participation from investors like Pantera Capital.

The Open platform primarily builds infrastructure and consumer-facing apps for The Open Network (TON) –  a high-performance, decentralized blockchain founded by messaging giant Telegram in 2018. The blockchain is noted for its rapid transaction processing speed. While Toncoin and Telegram are separate entities, they remain closely connected.

The TON token showed exceptional alpha in 2023 and was one of the crypto market’s best asymmetric bets last year. TON is the 23rd largest asset on the Brave New Coin market cap table, and the asset currently has a market cap of US$7 billion. It currently trades for ~US$2.80.

Despite its powerful strategic positioning, Toncoin has underperformed in the last 12 months – creating what many view as an undervalued buying opportunity. Source: Brave New Coin TON market data

TOP’s eye-catching raise indicates the interest and scale in blockchain-integrated messaging and social platforms. Telegram’s social messenger with built-in crypto elements experiment is challenging the conventional social model. Instead of creators relying on ad revenue, Telegram is pushing them to use integrated web3-native tools.

“There are 800 million users on Telegram using TON. What’s not to be excited about?” — Yat Siu, Animoca Brands chairman, on the symbiotic relationship between Telegram and TON. He said this after his firm purchase of an undisclosed amount of TON.

Though technically separate, TON and Telegram operate are deeply connected. Pavel Durov has become the backbone for Telegram’s crypto features. Since March 2024, TON has been core to Telegram’s ad revenue model. “We will sell ads and share revenue with channel owners in Toncoin. This will create a virtuous circle, in which content creators will be able to either cash out their Toncoins or reinvest them in promoting and upgrading their channels.” He explained.

With 1 billion monthly active users, Telegram’s integrated non-custodial Wallet in Telegram lets users manage crypto directly in chats. The ad platform pays channels 50% of revenue in Toncoin, making crypto earnings a native part of user engagement.

Telegram’s structure offers a built-in monetization model:

1. Set up a wallet inside Telegram.
2. Enroll in the ad platform, and;
3. Receive ad income in Toncoin directly into your wallet

All transactions between the company and Telegram are automatic and through the native Telegram wallet built into Telegram Messenger, no banks, no middlemen. This setup gives creators high-precision tools to monetize their content seamlessly within Telegram.

Alongside the TON wallet and the ad platform, which have gained traction because of their ability to make crypto payments seamless, click-based games like Notcoin and Hamster Kombat have gathered users aggressively. Hamster Kombat users hit 300 million players. The game was a viral smash hit. The Telegram crypto application space likely has room to grow more complex and capture more of the messenger’s enormous user base

Durov’s legal entanglements in the last year remind us of the regulatory risk lurking beside innovation. His arrest in France in August 2024 pushed Toncoin’s price down 20%, impacting Telegram’s ecosystem.

Telegram’s CEO is an outspoken advocate for privacy and secure communication. He faced charges in France related to criminal activities linked to his platform, including complicity in the spread of child pornography, illegal transactions by organized gangs, laundering of crime proceeds, and failure to provide crucial information to authorities. Telegram responded by enhancing content moderation and cooperating more with authorities

Despite this, nearly a year after his arrest, Durov continues to face six charges and remains under judicial supervision. Despite Durov’s legal battles, Telegram has continued to push forward with developing its ecosystem through avenues like TON.

By integrating payments, gaming, in-app browsing, and monetization, Telegram has rewritten the rules for social finance. TON-powered mini-apps with gaming and reward elements like Notcoin are reported to have onboarded millions with tap-to-earn features.

Telegram’s crypto-social model is more than a product feature – it’s a strategic shift toward embedding blockchain in everyday digital interactions. No matter the outcome, Telegram’s experiment is laying the groundwork for the next generation of social platforms.