Pantera Capital recently announced its latest investment in TON. TON is a layer 1 blockchain network originally designed by Telegram and continued to be developed by the open-source community. We believe TON has the potential to introduce cryptocurrencies to the masses, as it has gained widespread usage within the Telegram network.
Telegram, with over 900 million monthly active users, is a forward-looking, fast, and secure messaging platform used for personal and team communication, large-scale community building, content sharing, and more. By leveraging Telegram’s massive user base, seamless user experience, and the vibrancy of the emerging TON ecosystem, we believe TON has the potential to become one of the largest crypto networks.
Among the leading communication tools in the world, Telegram stands out because its platform not only embodies the essence of cryptocurrencies but also has significant distribution. Telegram’s monthly downloads often exceed its closest competitor Signal by 10 times, with over 36.7 million downloads in January 2024.
What about other messaging apps? Telegram is the only major platform that is unencumbered by regulations and able to incorporate Web3 into an open blockchain network. While Facebook’s Messenger attempted to integrate encrypted payments with Libra, they ultimately faced regulatory hurdles in the United States, leading to a complete shutdown. WeChat attempted to integrate digital yuan CBDC payments, but the system’s scope is limited, and developers do not have the capability to build permissionless applications.
We believe that due to Telegram’s shared Web3 spirit and extensive distribution, Telegram is in a favorable position to bring cryptocurrencies into the mainstream world.
TON is a blockchain project developed by Telegram, aiming to create a decentralized network capable of supporting various applications using the extensive user base of the messaging app. TON features a diverse ecosystem, including TON Blockchain, TON Storage, TON DNS, and TON Services, all integrated seamlessly.
The backbone of this system, TON Blockchain, is built for high performance and scalability, with its dynamic sharding mechanism enabling fast transaction processing. This architecture ensures that the network can handle millions of transactions per second and scale effectively with the growing number of users, making it an ideal choice for developers looking to launch applications for billions of users without compromising speed or security.
TON’s dynamic sharding provides a scalable network for millions of users.
Using encrypted applications can often be challenging for users. New users have to write down a 24-word key and store it securely. But what if they forget the password? How can they send or receive payments to other users? Copying and pasting public keys may not be the optimal experience.
Telegram simplifies much of this complexity through the Top.co wallet within Telegram, allowing users to seamlessly interact with the apps. Users can easily buy, sell, or manage tokens and NFTs in a single interface, with direct access through Telegram settings and personal chats.
Telegram’s wallet in Telegram has both custodial and self-custodial management options based on TON, providing an easy onboarding experience for all users while allowing experienced users to have full control over their keys. With TON’s self-custodial wallet, users don’t need to remember mnemonic phrases; instead, they can simply use Telegram and email as backups.
Top.co’s Telegram wallet has 15 million users and continues to grow.
TON’s thriving ecosystem leverages Telegram’s innovative design and vast user base. Over 360 million users per month use Telegram’s so-called “mini-programs,” including chatbots and mini-games. Through TON, we expect to integrate cryptographic technologies into these “mini-programs,” significantly enhancing the user experience for billions of users. TON hosts over 300 projects, with the majority building mini-programs on Telegram accessible through the Telegram App Center.
Earlier this year, we observed how meme coin trading tools like BonkBot generated tens of millions of dollars in revenue through Telegram’s user interface. TON-based applications, such as StormTrade, now allow users to trade perpetual contracts, cryptocurrencies, stocks, and shares using the same interface. StormTrade handles daily trading volumes exceeding $10 million, and we believe similar TON-native Telegram bots will become the preferred user experience for many traders.
Telegram serves as the foundation for viral social and gaming applications. Early experimental Telegram games like Pixels and Fanzee Battles attracted millions of users within days, showcasing the platform’s immense potential for user engagement. Catizen, a cat-themed gaming platform built on TON, currently has over 4 million users, with over 700,000 users playing daily. Notcoin, a social app built on TON, where users compete to mine digital currencies, has quickly attracted over 30 million users, making it one of the fastest cryptocurrency adoption events in history.
The TON Foundation recently announced its incentive program, which rewards successful TON app development. We believe this will foster the creation of exciting new cryptocurrency mini-programs that have the potential to attract the masses.
TON is providing various monetization, sharing, and business development opportunities for the Telegram community. As a decentralized marketplace on the TON network, Fragment offers a platform where users can trade collectibles such as virtual phone numbers and custom Telegram usernames. Fragment has facilitated over $350 million in sales of custom usernames and virtual phone numbers. This is just the beginning, as in the near future, the 730 billion Telegram stickers sent could be transformed into NFTs. These NFTs can then be bought and sold through the TON blockchain.
Telegram, through its TON-based Fragment platform, integrates revenue sharing with content creators and channel owners, taking a significant step forward. This marks a shift in the traditional social media model, directly allowing these creators to earn income from their channel’s advertising revenue. This approach not only rewards content creators but also fosters a closer relationship between the platform and its users, promoting a more equitable distribution of economic benefits within the digital ecosystem.
On April 19, 2024, Tether announced the deployment of its stablecoin USDt on the TON blockchain and Telegram wallet. This development represents a significant advancement for the crypto industry, as it enables seamless sending and receiving of stablecoins through the Telegram platform, making payments as simple as using Venmo or Apple Cash.
The scalable nature of the TON network allows for a fixed fee of around $0.10 for transactions between two users, which is 66% cheaper than other crypto payment platforms. Additionally, it offers built-in deposit and withdrawal channels, including bank transfers and exchanges, further facilitating accessibility and usage.
Stablecoin payments on TON.
We believe stablecoin payments on the Telegram wallet are particularly important for individuals in developing countries who often lack access to banking services and are forced to use complex crypto user interfaces to store and transfer funds. With stablecoins deployed on the TON network, cryptocurrencies are taking a significant leap towards realizing the vision of programmable peer-to-peer currency and a globally accessible decentralized financial system.
We believe the TON network is still in its early stages, and we are excited to witness the adoption of its ecosystem and new features by the Telegram user community.
Telegram’s core embodies the spirit of cryptocurrencies: “an open, free network accessible to everyone.” With TON, Telegram has achieved a symbiotic relationship where scalable smart contract capabilities and a robust payment network enable breakthrough functionalities that were not feasible in the Web2 environment.
With its massive user base, scalable infrastructure, thriving mini-program ecosystem, and native stablecoin transactions, TON fully taps into the potential of a network with 900 million active users.
Related Reports
TON breaks $7.3, reaching a new all-time high! Market cap solidifying its position as the 9th largest, closely following Dogecoin (DOGE).
Earn 50% APY by holding USDT! Telegram wallet incentive program launches, how to claim TON airdrops tutorial.
Can Telegram’s public chain Ton become a strong challenger to Solana?