Telegram Declares $400 Million in Crypto in 2023, IPO in Jeopardy with Durov Arrest?
- By 2023, over 40% of Telegram's revenue comes from cryptocurrency-related transactions, with $400 million in reported crypto assets, marking a growing involvement in the digital asset sector.
- The arrest of Pavel Durov in France has jeopardized Telegram's IPO plans and caused a 10% drop in the value of its bonds.
- Toncoin suffered a 20% drop following Durov's arrest, reflecting the challenges posed by the centralization of leadership within Telegram.
Telegramthe messaging app founded by Pavel Durovhas recently gained attention not only for its role in global communication, but also for its growing involvement in the crypto sector.
What started as a secure messaging platform has grown into a key player in the digital asset ecosystem, as revealed by company financial statements for 2023. These documents show that crypto transactions now represent a substantial portion of its revenue.
Telegram’s Finances: A Close Link to Crypto
In 2023, Telegram recorded a turnover of $342.5 milliondespite a operating loss of $108 million. Among these revenues, more than 40% comes from cryptocurrency-related activitiesnotably via an integrated portfolio and the sale of “ collectibles » (digital collectibles). This integrated wallet allows users to store, send, receive and exchange cryptocurrencies, including Yourcoina crypto closely linked to Telegram.
Digital assets represent a significant portion of the assets of Telegramwith a estimated value of nearly $400 million as of December 31, 2023. This significant exposure to cryptocurrencies places Telegram in a unique position among technology companies, where messaging and digital finance coexist symbiotically.
Legal and Financial Challenges: Pavel Durov's Arrest in France
Pavel Durov's arrest in France for his alleged failure to control criminal content on Telegram has caused a shockwave not only legally, but also financially. This arrest has seriously Telegram's plans to go public have been compromised (IPO) by 2026 as the company made efforts to monetize and become financially self-sufficient. Durov, who has personally invested millions of dollars in Telegram, finds himself at the center of an investigation that could seriously damage the company's image and ability to attract investors.
The reaction of the markets was not long in coming: the Telegram bond value fell by almost 10%reflecting investor concerns over the uncertainty surrounding the company's future. Bondholders, who had hoped to convert their debt into equity in the IPO, may now face a difficult dilemma as Telegram's reputation is increasingly associated with illegal content.
Impact on the crypto market: Toncoin in difficulty
THE Yourcoininitially developed by the team of Telegram and now run by a community of open-source developers, has also suffered from the fallout from Durov's arrest. The price of the YOUR fell nearly 20% on the news, before slowly recovering.
For Telegramthere selling part of its Toncoins before the price drop has helped to limit the financial damage, but this does not mitigate the overall impact of this situation on the image of the ecosystem.
Telegram’s centralized governance: an asset or a risk?
One of the central elements of the Telegram governance is the figure of Pavel Durov himself. Described as a centralized and charismatic leaderDurov is at the heart of all major decisions regarding the app. This approach, which has allowed Telegram to maintain a consistent vision and rapid innovation, however, raises questions about the viability of the company without his leadership.
With only 50 employeesincluding 30 developers recruited mainly from Eastern Europe, the company operates with a tight hierarchical structure and leadership that could be difficult to replace. Concerns are growing about Telegram's ability to navigate the murky waters of international regulation without its founder at the helm.
Looking Ahead: Dark Clouds Over Telegram's IPO and Sustainability
The challenges facing Telegram are not only financial, but also legal and regulatory. As the company sought to diversify its revenues and prepare for an IPOthe charges against Pavel Durov threaten to turn away potential investors and limit ad revenue streams, leaving them mostly with questionable ads or crypto ads.
The current situation raises questions about the company's valuation, estimated at over $30 billion by DurovRegulatory hurdles, financial losses and increased reliance on cryptocurrencies could make that valuation a difficult target to achieve, especially if regulators and investors continue to move away from the company.
The article Telegram declares $400 million in crypto in 2023, IPO jeopardized by Durov’s arrest? appeared first on Coin Academy