Telegram reportedly considering IPO, TON token surges 12%

According to the Financial Times, Telegram has nearly 9 billion users, and its founder Pavel Durov has stated that the platform is close to being profitable.

In an interview with the Financial Times, Pavel Durov mentioned that with the introduction of advertising and premium services, Telegram's revenue has reached "hundreds of millions of dollars," making it one of the most popular social media applications in the world. Telegram is currently raising "hundreds of millions of dollars" to secure its future profitability. It is reported that the platform has grown from 500 million users at the beginning of 2021 to 9 billion.

Durov told the Financial Times that Telegram is considering an initial public offering (IPO) and has received investor valuations of over $30 billion.

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Two sources mentioned that once Telegram starts to turn a profit and market conditions are favorable, it may seek a listing in the United States. Durov declined to comment on a timeline or potential location. Telegram has already raised approximately $2 billion in debt financing through a $1 billion bond issuance in 2021 and further issuances of $7.5 million and $2.7 million last year.

Denies Relationship with Crime and Russia

A study warns that this lightly regulated platform remains a hotbed for criminal activities, extreme or terrorist content, and misinformation. Critics of Telegram have suggested that the Russian government may have ties to or influence over Telegram, a claim that Durov denies.

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Russian-born Durov co-founded Telegram with his brother in 2013. Durov stated that he fled Russia a year later after refusing to share data of certain Ukrainian users with Russian security agencies. Under duress, Durov sold his stake in the company VK, which he had founded, to Kremlin-friendly oligarchs for $3 billion.

Expanding Ad Revenue, Introducing AI Bots

Durov mentioned that Telegram has been testing ads in some regions, requiring each marketer or agent to spend between 1 million to 10 million euros. This year, the service plans to expand globally and to smaller advertisers through an automated system.

He also mentioned exploring the introduction of an AI-driven chatbot.

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IPO Marketing Strategy: TON Token Rises 12%

Following a report by the Financial Times, Telegram's ecosystem cryptocurrency TON surged over 12% to $3.11, with a trading volume to market cap ratio of 0.014 Bitcoin to 0.039.

This token, purportedly community-driven and strongly supported by Telegram, was created after Telegram raised nearly $1.7 billion in 2018, a project that eventually led to a lawsuit by the U.S. SEC. TON is mined and distributed by miners, avoiding the risks of illegal fundraising, and is currently widely used within the Telegram App.

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In light of Telegram's rumored sensitive relationship with Russia, its successful IPO listing in the U.S. remains to be seen. Recent intentions to IPO by eToro and Reddit also indicate the market's enthusiasm, allowing these popular companies that didn't IPO successfully in the last bull market to re-enter and test the waters.

Additionally, the correlation between TON tokens and Telegram shares will also affect the price movements of both.

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