Crypto Monetization in Telegram. Prospects And Difficulties

Crypto Monetization in Telegram. Prospects And Difficulties


On February 28, Pavel Durov announced the launch of monetization of Telegram channels via the Ton blockchain. What does this mean and what difficulties might users encounter?

Pavel Durov's official Telegram channel posted a short message about the launch of channel monetization in March. The new tool will be available to all advertisers in almost a hundred countries. What countries Durov did not specify. Advertisers will be able to buy advertising with Toncoin, and channel owners will receive 50% of the messenger's revenue from advertising, also in cryptocurrency.

This news instantly stirred up the crypto community: the native token of the Ton blockchain rose by 40% to over $2.92. This announcement was indeed a long-awaited one among messenger users, as talk of introducing a monetization tool started back in 2021.

However, there are many ambiguities behind Durov's decision, one of which lies in the announcement message itself. Many users found the decision to monetize channels with TON, or rather the distribution of revenue, too suspicious. They started voicing their concerns about the concentration of coin in the ecosystem with the arrival of the monetization tool. The share of TON ownership from ad sales seemed "unhealthy," which many were quick to point out. In his next post, Durov acknowledged the problem and provided a solution. The messenger will now limit its Toncoin holdings to 10%, and sell the surplus to long-term investors at a reduced rate, with a blockchain and transfer rights for one to four years. This should reduce the volatility of the coin.

The latter integration is part of Telegram's global goal to attract more users to the Web3 world. In addition, monetizing channels through its own blockchain is indeed an interesting idea that makes the Toncoin coin even more utility. It would seem that the idealistic idea of the usefulness of cryptocurrencies has finally found its realization, but in reality, the operation of this new monetization tool may face a serious regulatory hurdle.

Telegram launched the Ton blockchain in 2018 with its native currency Gram, designed to facilitate transactions and network operations. Regulatory disputes with the U.S. Securities and Exchange Commission forced Telegram to withdraw from the project in 2020. Essentially, the Ton blockchain has been a free project in the hands of developers ever since. At the moment, Ton is an open-source project that serves as the basis for multiple projects, including the much hyped Notcoin. Now, Telegram's decision to integrate TON as an exclusive payment currency for distributing advertising revenue may once again attract the attention of U.S. regulators and make them suspicious of Telegram's continued close relationship with TON.

Persecution may also hit Telegram across the ocean, where Telegram is the most popular messenger. Monetization of channels could become a great tool for earning money for Russian bloggers, the bulk of whom moved to Telegram after monetization was disabled on other platforms such as YouTube and Instagram. However, experts and lawyers are not sure that monetization from Telegram will be available in Russia. The messenger intends to create a vicious circle by paying channel owners income in the form of cryptocurrency. But, as is well-known, cryptocurrencies are not recognized as a legal means of payment in Russia. Even if the payer is a non-resident, such transactions still fall under the ban. And bloggers are unlikely to want to re-register their channels and re-gain an audience: this is a different kind of risk for them. Moreover, the Telegram advertising model, which was launched back in 2021, works in Russia perfectly, and the owners of large channels make mutual settlements with advertisers directly.

So who will Telegram's new monetization tool be useful for? Telegram is not limited to the United States and Russia. Users in other parts of the world, such as India, are now actively downloading the Telegram app, considering it the most secure messenger on the market. The Ton blockchain monetization tool can attract new countries and markets, in particular those where Telegram's previous advertising tools did not work for some reason.

The exact terms of rewards for channel owners and the countries in which this new feature will work remain unknown for now.

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