In the realm of cryptocurrency, a project associated with the popular messaging app Telegram has garnered significant attention this year.
The blockchain platform known as the Telegram Open Network (TON), linked with Telegram Messenger LLP, has experienced a remarkable surge in value amid a broader rally in the cryptocurrency sector.
Assets locked on TON have surged by an impressive 1,400% this year, briefly surpassing $1 billion, according to a recent report. This performance has reignited optimism that Telegram could evolve into a comprehensive “super-app” integrating social interactions, gaming, and financial tools.
Investment firm Pantera Capital Management LP views Telegram as a pivotal platform capable of incorporating Web3 technologies into an open blockchain network without facing significant regulatory challenges, the report noted.
Founded in 2013 by Russian brothers Pavel and Nikolai Durov, Telegram raised $1.7 billion in 2018 through an initial coin offering (ICO) to launch the Telegram Open Network, the report highlighted. However, the project encountered scrutiny from the U.S. Securities and Exchange Commission (SEC), ultimately settling in 2020 by agreeing to return ICO proceeds and pay an $18.5 million penalty.
Following the settlement, the TON Foundation emerged as a distinct entity from both Telegram Open Network and Telegram itself. Nonetheless, skeptics argue that TON remains heavily dependent on Telegram, with network decisions likely aligning closely with Telegram’s interests.
Despite these concerns, Telegram announced in February its exclusive use of the TON blockchain for payments related to a new ad-revenue sharing program. This move coincided with significant growth in key metrics for the blockchain, including a rise in daily active users on TON surpassing 350,000, as reported by TonStat data.
In an increasingly global and digital world, instant cross-border payment solutions are gaining popularity. Richard Galvin, co-founder and CEO of crypto investment firm DACM, highlighted these solutions as a “killer app” in the report, noting DACM’s acquisition of TON tokens in a private round in early 2023.
Nevertheless, the growth of crypto applications faces challenges such as know your customer (KYC) and anti-money laundering (AML) checks, which TON addressed on June 3 by implementing new KYC and AML procedures requiring users to provide personal information to access key wallet features.
The recent surge in assets on the TON blockchain can be attributed to the popularity of mini-apps like play-to-earn games such as Hamster Kombat and Notcoin, which have amassed millions of users and significantly contributed to the blockchain’s expansion. Additionally, a partnership with Tether, the stablecoin issuer, announced in April has bolstered the usage of USDT on TON.
Looking ahead, industry experts anticipate that payments and remittances will become increasingly critical use cases for TON. Cosmo Jiang, portfolio manager at Pantera, emphasized that consumer-facing platforms leveraging blockchain software will be a key growth area in crypto over the next three years, according to the report.
TON’s ambitious aim to capture a third of Telegram’s user base by 2028 positions it well to capitalize on this trend, the report concluded.
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