Telegram Could Be Holding $400 Million in Crypto
Telegram’s 2023 Financial Report Shows Its Crypto Assets Are More Than Its Cash Reserves
The messaging app Telegram is said to hold the majority of its assets in cryptocurrency, with an estimated value of $400 million, according to the Financial Times.
In its 2023 financial report, Telegram said that the majority of its revenue comes from crypto-related activities, including “integrated wallets” and “collectibles sales.” This likely refers to the fact that Telegram has supported crypto wallets directly in its messaging app since 2023, as well as started selling usernames, sticker and blue tick services, etc., in fiat currency and Toncoin (TON) — the native currency of the TON blockchain.
In total, the two items contributed $148 million to Telegram’s revenue, accounting for 40%.
As of the end of last year, Telegram claimed to have $400 million in cryptocurrency, more than its cash reserves of $170.8 million.
However, the company also sold a large amount of crypto at one point, raising $243.5 million before the price collapsed.
Telegram is still owned by founder and CEO Pavel Durov, who was recently arrested by French authorities and is awaiting trial on various charges. The messaging app has previously raised $2.3 billion from selling corporate bonds to investors including sovereign wealth funds, hedge funds, and technology-focused institutions.
Durov revealed earlier this year that he has been a long-time believer in the decentralized nature of cryptocurrencies and has held Bitcoin for the past 10 years.
Thousands of dollars in assets are being bet on the Polymarket prediction market on the day Telegram CEO Pavel Durov will be released.
At 8:00 PM on August 24 (local time), CEO of the Telegram messaging app Pavel Durov was arrested as soon as his plane landed at Le Bourget airport, north of Paris. According to French prosecutors, Durov could be released at 8:00 PM on August 28, 2024 after completing the initial investigation procedures.
As reported, Durov is currently under investigation in France on 12 charges against the CEO related to operating an online platform that facilitated illegal transactions, possessing pornographic images of minors, laundering criminal proceeds, and failing to cooperate with law enforcement, among other charges.
Although Durov has not been formally charged, authorities have detained the Telegram founder. French President Emmanuel Macron said that the arrest of Telegram CEO Pavel Durov was not a political decision and was part of an ongoing judicial investigation.
Emmanuel Macron affirmed:
"In a state governed by the rule of law, freedoms are maintained within the framework of the law, both on social networks and in real life, to protect citizens and respect their fundamental rights.
The arrest of the Telegram chairman on French territory is part of an ongoing judicial investigation, and is in no way a political decision. The right to judge belongs to the judges."
This event has caused a stir in the crypto community, with a series of strong reactions from influential figures such as Vitalik Buterin, Edward Snowden and Elon Musk. They condemned the arrest as unjustified, and called for the release of the Telegram CEO.
In light of the tense situation, investors have quickly turned their attention to the prediction market Polymarket, which has seen hundreds of thousands of dollars in bets placed on when Durov will be released. Total bets on Durov’s release in August 2024 have exceeded $470,000, but only 33% of people have bet on his release in the next few days because of the serious charges he could face.
Although French prosecutors have said Durov could be released on August 28, 2024, many believe that the interrogation could yield enough evidence to extend his detention or formally charge him, moving him into custody pending trial.
This has led many bettors to believe that Durov’s release could last longer than a month, with over 77% of bettors believing he will be released before October. Notably, as long as Durov is released before September 30, even if he is placed under house arrest, those who bet correctly will immediately receive a reward from the prediction market.
