telegram faced a significant financial challenge despite its user growth, according to its financial statement for 2023. The messaging platform revealed it held $400 million in digital assets by the end of the year, with revenue of $342.5 million but an operating loss of $108 million.
About 40% of telegram's revenue stemmed from activities related to digital assets, such as an integrated wallet and the sale of digital collectibles. The integrated wallet feature allows users to store, send, receive, and trade various cryptocurrencies directly within the app.
In addition to the integrated wallet, the company's revenue stream was boosted by the sale of digital collectibles like usernames and virtual phone numbers. telegram not only sells these items but also facilitates transactions between users, earning fees for its services.
The Global Impact of telegram
telegram's reach globally was evidenced by its download statistics in 2023. India led the way with 83.85 million users, followed by Brazil and the United States with 45.45 million and 29.92 million users, respectively, according to Statista.
However, the company faced a major setback when CEO Pavel Durov was arrested upon landing at Le Bourget airport near Paris on August 24. Durov faced multiple serious charges, including terrorism, trafficking, conspiracy, fraud, and money laundering.
This development sent shockwaves through the cryptocurrency market, particularly impacting Toncoin (ton), the native cryptocurrency of The Open Network developed by telegram. ton experienced significant price volatility, dropping from $6.70 to $5.30 within a week, marking a decline of over 21%.
The market capitalization of ton also took a hit, decreasing nearly 2% to $13.42 billion. Despite these challenges, French authorities granted Durov bail under strict conditions, including payment of 5 million euros, bi-weekly reporting to the police, and confinement within French borders.
The Legal Battle and Durov's Release
Paris prosecutor Laure Beccuau confirmed the judge's decision to formally investigate Durov on all charges for which he was detained, including alleged involvement in illicit online transactions, distribution of illegal content, drug trafficking, fraud, failure to cooperate with authorities, money laundering, and offering cryptographic services to criminals.
However, a video shared by Russian state news agency RIA and later on social media showed Durov leaving the prosecutor's office and getting into a vehicle. The footage captured him dressed in black, sporting a baseball cap and sunglasses.
Despite the legal battles and uncertainty surrounding Durov's future, telegram continues to navigate the challenges and opportunities in the digital asset space. As the company evolves and adapts to market dynamics, its innovative solutions and global impact remain central to its success.
