Telegram’s Financial Overview and CEO Arrest: Impact on Digital Assets and Market Sentiment

According to Telegram’s 2023 financial statement, the messaging app held approximately $400 million in digital assets by the end of the year. As of late 2023, Telegram boasted around four million premium users, a number that has since surpassed five million.

Despite its substantial revenue of $342.5 million for the year, Telegram reported an operating loss of $108 million. Notably, around 40% of the company’s revenue stemmed from digital asset-related activities, including the “integrated wallet” feature and the “sale of collectibles.”

Details on Digital Asset Revenue

The Financial Times, referencing Telegram’s financial statements, explains that the “integrated wallet” is a tool enabling users to store, send, receive, and trade cryptocurrency. Meanwhile, the “sale of collectibles” encompasses the sale of various virtual items to users, such as usernames and virtual phone numbers. Telegram also earns fees from facilitating transactions related to these collectibles.

According to Statista, Telegram experienced significant global growth in 2023, with India leading the way in downloads at 83.85 million, followed by the United States with 29.92 million downloads.

On August 24, Telegram CEO Pavel Durov was arrested at Le Bourget airport near Paris. He faces multiple charges, including terrorism, trafficking, conspiracy, fraud, and money laundering. Durov was brought to court on August 28.

In the wake of Durov’s arrest, there was notable market reaction surrounding Toncoin (TON), the native cryptocurrency of The Open Network initially developed by Telegram. Following the arrest, TON experienced a significant price drop, trading at around $5.30, down over 21% from approximately $6.70 in the past week. Additionally, its market capitalization fell nearly 2% to $13.42 billion.

Market Sentiment and Future Outlook for Toncoin

Despite the recent decline in Toncoin’s price and market capitalization, technical and market analyses suggest potential for a rebound. If the market views Durov’s arrest as an isolated event rather than a threat to the broader Toncoin ecosystem, investors may see the current dip as an opportunity to buy.

The future performance of TON will likely depend on how the market perceives the impact of this incident on the cryptocurrency’s underlying technology and ecosystem.