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Telegram’s Financial Results Revealed: $400m of Assets in Crypto
Telegram’s 2023 financials have been disclosed, offering a rare glimpse into the company’s operations and raising questions about its sustainability:
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Key Financial Highlights:
⚫ Revenue: Telegram reported $342.5 million in revenue, a significant figure but one overshadowed by an operating loss of $108 million.
⚫ Operating Expenses: The company burned through over $450 million in operating expenses to generate its revenue, highlighting the high cost of maintaining its platform.
⚫ Crypto Revenue: Over 40% of Telegram's revenue came from crypto-related activities, including its "integrated wallet" and "sale of collectibles."
⚫ Digital Assets: Telegram’s digital assets, primarily Toncoins, are valued at nearly $400 million, making up a substantial portion of its balance sheet.
⚫ Asset Revaluation: The company recorded a gain of $86 million through the revaluation of digital assets, boosting its comprehensive income.
⚫ New Business Line: The "integrated wallet" introduced in 2023, allowing users to store, send, and trade crypto assets, became a crucial revenue stream for Telegram.
⚫ Liabilities: Despite raising over $2.3 billion from blue-chip investors, Telegram is burdened with substantial liabilities, raising concerns about its financial health.
⚫ Valuation Concerns: With an operating loss and heavy reliance on volatile crypto assets, the $30 billion valuation touted by Durov earlier this year is now under scrutiny.
⚫ Debt Maturity: $2.4 billion in debt maturing by 2026, including a $1bn bond issued in 2021, which might be unsustainable due to Telegram's operating losses.
While Telegram’s financials reveal impressive revenue figures, the underlying challenges—significant operating losses, high expenses, and dependence on crypto—suggest a need for a closer examination of its long-term viability.
As the company navigates these financial hurdles and the recent arrest of its founder Pavel Durov, the future of Telegram remains uncertain. Investors and users alike will be watching closely as events unfold.
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Telegram’s 2023 financials have been disclosed, offering a rare glimpse into the company’s operations and raising questions about its sustainability:
Key Financial Highlights:
Telegram’s heavy reliance on crypto assets like Toncoin underscores the company’s shift towards digital currencies as a primary revenue driver.
The TON blockchain, originally developed by Telegram and now managed by an open-source community, continues to play a pivotal role in the company’s financial ecosystem.
While Telegram’s financials reveal impressive revenue figures, the underlying challenges—significant operating losses, high expenses, and dependence on crypto—suggest a need for a closer examination of its long-term viability.
As the company navigates these financial hurdles and the recent arrest of its founder Pavel Durov, the future of Telegram remains uncertain. Investors and users alike will be watching closely as events unfold.
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On August 24th, at 8:00 PM local time, the founder and CEO of Telegram, Pavel Durov, was detained by French special services at Le Bourget airport.
This news quickly spread across Telegram channels, sparking widespread discussion and speculation.
But Durov’s arrest is not an isolated incident; it is far from the first time that figures in the crypto industry have faced similar issues.
In January 2023, Anatoly Legkodymov, the creator of BTC Banker, the largest Telegram bot for cryptocurrency exchange, was arrested in the United States.
A few weeks later, the entire project team, including Pavel Lerner, the creator of Exmo and Yutorg exchanges, was also detained.
Since then, they have been held in France, awaiting trial.
There has been little information about the case, and the lawyers are essentially powerless, as the case is controlled by the U.S.
The only one who managed to avoid arrest was Anton Shkurenko, who stayed in Moscow.
In December 2023, another member of the crypto community involved in cryptocurrency exchange was arrested upon arrival in France.
This information did not make it to the Russian media, but those in the know are aware of it. Along with him, other individuals were detained, including the pregnant wife of one of the arrested.
Since December, they have been held in isolation, awaiting trial, alongside the BTC Banker team.
Two years ago, members of the Tornado Cash team were arrested.
Those who were abroad were detained.
Lesha was sentenced to six years in the EU, while Roma avoided prison but was placed under house arrest while awaiting trial in the U.S.
A month ago, 10 Russians were detained in the UAE and immediately extradited to the U.S.
This incident was not reported in the media, but the charges involve circumventing sanctions through cryptocurrency payments.
Once again, those who stayed in Russia managed to avoid arrest.
The name Vinnik and the history of BTC-e are well known.
Employees of the successor exchange, Wex, were also arrested abroad but were released only under special conditions, likely involving recruitment.
The creator of the Bitcoin Fog mixer, Roman Sterlingov, was arrested in 2021.
After three and a half years of waiting for trial in a U.S. prison, he was sentenced to30 years in prison.
His defense recently filed an appeal, but the prospects for overturning the sentence remain uncertain.
Recent events have shown that Telegram's neutrality is under question.
One striking example is the rapid removal of channels dedicated to tax optimization in Russia.
In a short period, the following channels were deleted:
All of this happened without any official requests or court rulings.
This shows that Telegram is actively involved in processes that may be unnoticed by the general public but have serious consequences.
All these stories raise many questions about freedom and security in the digital world as well as in real life.
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In the world of cryptocurrencies, where transaction cleanliness is crucial, the concept of "dirty" crypto is coming to the forefront.
Many users are beginning to wonder what exactly sanctioned crypto or the so-called "Moscow" tether is, and how to deal with it.
Crypto can become sanctioned not only due to ties with Russia but also due to connections with Iran, North Korea, and other entities listed in the SDN List maintained by OFAC.
These lists are compiled by companies that specialize in blockchain marking and conducting investigations.
❌ If a wallet interacts with an address that is on the sanctioned list,
it may receive a "red mark" retroactively.
It all starts with blockchain marking, which tracks the movement of funds and their association with various clusters—groups of interrelated wallets
For example, if a wallet has been involved in illegal activities or linked to hacker attacks, it can be marked as high-risk.
Here are some of the key sources that determine risk levels:
🚩Child Exploitation — Child exploitation
🚩Dark Market — Illegal activities
🚩Sanctions — Ties to sanctioned entities from SDN lists
🚩Mixer — Use of crypto mixers
🚩Ransom — Extortion and blackmail
🚩Scam — Fraud
Wallets are checked for interactions with these clusters, and the results can indicate how "dirty" the crypto is.
Crypto users can take several steps to protect themselves:
Find out from which wallet the crypto will be sent to you, and request a fresh report from an AML bot.
Monitor your wallet and periodically check its level of sanction risk.
Before sending crypto, make sure the recipient is willing to accept it from your wallet, and perform an AML check.
In a rapidly changing crypto world with increasing regulations, it’s important to stay informed and cautious.
Understanding how crypto marking and checks work will help you avoid unwanted consequences and protect your assets
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However, on September 26, the listing of Hamster Kombat on the OKX platform is expected.
To seize the earning opportunity, users are advised to register on OKX in advance, fund their wallets, and be ready for the launch of the Hamster Kombat token.
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The creator of Telegram is facing pressure from state structures due to issues related to internet and communications, censorship, and cryptocurrencies.
Let's break down why tension is being felt on each of these fronts.
🛜 Internet and Communications
For decades, intelligence agencies have been accustomed to controlling phones, the internet, and cellular communications worldwide.
Questions have been raised about Telegram's Secret Chats, where encryption keys are stored by users.
In some ways, the system is similar to Signal Messenger, which has 40 million MAUs,
Since 2016, Signal has operated legally in the U.S., while Telegram has been around for 11 years despite criticism from NGOs.
Question: Could it be about more than just encryption?
With over 900 million users, Telegram can extract vast amounts of data even from metadata, contact lists, and GPS.
Unlike Facebook and other major platforms, Telegram does not always provide information upon court order, raising further questions.
Censorship in social networks is on the rise. For instance, in the EU and Ireland, there's ongoing discussion about banning Twitter due to excessive freedom of speech.
In China, Iran, Korea, and Turkmenistan, many platforms have long been banned.
In the U.S., debates are ongoing about increasing moderation. The trend is concerning:
The founder of Telegram believed he could manage without an excessive compliance team, unlike YouTube (20,000 moderators) and Facebook (15,000 moderators).
But judging by global trends, the control over censorship is only growing.
Global authorities are increasingly tightening control measures over cryptocurrencies:
Fighting on three fronts is a serious challenge for a company already facing financial difficulties.
Telegram stands at a crossroads. The future will show whether the platform can withstand the pressure from global forces or if it will have to find new paths.
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Last week, the Chinese Communist Party (CCP) held the World Robotics Conference, showcasing the latest advancements in robotics.
These developments raise questions about China's role in the global arms race, particularly in the context of AI and robotics.
Chinese humanoid robots are rapidly catching up with global competitors thanks to AI integration, opening up possibilities for their use in military operations.
The People's Liberation Army of China (PLA) is already demonstrating weaponized drones and quadrupedal AI robots capable of autonomous firing.
China is actively subsidizing robotics development.
In 2023, over $1.4 billion was allocated to support the industry.
In 2022, China installed more than 50% of all industrial robots globally, becoming the world leader in this field.
In 2016, a Chinese company acquired the German robot manufacturer Kuka, raising concerns about intellectual property theft and technology transfer.
This enhances China's position in the global arms race.
Chinese companies continue to advance mobile robots.
LimX Dynamics recently unveiled a bipedal robot capable of navigating complex terrain and adapting to attacks.
These innovations could be used for reconnaissance, military operations, or crowd control.
The CCP promotes robots as "human-friendly," but Chinese concepts of human rights often align with regime interests.
This raises concerns that China might use robots for authoritarian purposes, including population control and expanding its influence abroad.
Experts warn about the risks associated with exporting Chinese robots, which could be hacked and used to cause harm.
The U.S. is already taking steps to counter this threat.
Congressman Vern Buchanan has proposed an amendment requiring the Pentagon to report annually on threats from Chinese military technologies, including AI robots.
China is rapidly moving towards leadership in military robotics, raising serious concerns about global security.
The international community needs to assess the risks and develop strategies to mitigate threats associated with China's AI robotics development.
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A new grant program has been launched, offering monthly support to projects for growth and monetization through the AdsGram.ai platform.
To participate:
Key conditions:
— Register on AdsGram.ai
— Spend the following amounts on AdsGram.ai:
For grants in the L — XXL categories, SDK integration into your app is required.
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Kamala Harris' proposal for a $5 trillion tax increase — the largest in American history — is already raising numerous questions and concerns, especially among those investing in cryptocurrencies and tech companies.
Let's break down how this could impact the crypto world and the economy as a whole.
Harris proposes raising the corporate tax rate from 21% to 28%, making American companies less competitive on the global stage.
For crypto companies, already struggling to survive, this means additional costs and potentially decreased investor interest.
More than a million small businesses in the U.S. are registered as corporations, and this tax hike will affect them just as much as giants like Google or Apple.
The result? Lower wages, higher prices, and possibly a capital flight abroad.
Harris also plans to raise capital gains taxes to match personal income tax rates.
This could double the tax rate on investment income, creating a barrier to investing in cryptocurrencies and other assets.
Many investors are already dealing with inflation taxes, and higher taxes will only make things more difficult.
Expect asset prices, including crypto, to drop if this plan is implemented.
One of the most controversial aspects of Harris' plan is taxing unrealized gains, meaning profits that have not yet been realized.
This could mean that investors are taxed on expected profits, even if the market drops and the profits never materialize.
For crypto investors and small business owners, this could become a nightmare: paying taxes year after year on profits that don’t actually exist.
Harris plans to let the Tax Cuts and Jobs Act of 2017 expire, leading to a significant tax increase for small businesses.
The expiration of this law could be the final blow for those hoping to survive in the current unstable economy.
Increased tax pressure, especially in terms of corporate and investment taxes, could severely hinder the development of crypto projects and investments in this sector.
These tax proposals have sparked heated debates on social media, with many concerned about their potential impact on both the U.S. economy and the cryptocurrency market.
These changes pose significant risks to the economy and financial stability in both the U.S. and the cryptocurrency world.
Will we face a "tax Armageddon"? Time will tell.
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Senator Cynthia Lummis has proposed a bill to create a US Strategic Bitcoin Reserve (SBR), which could be a historic step for the country.
Let's break down the key objectives of the Bitcoin reserve.
Bitcoin will become part of the US strategic reserve, alongside oil and gold, strengthening the country's position in the face of global economic instability.
Including Bitcoin in the strategic reserves will boost the position of the US dollar as a global reserve currency.
Bitcoin will be used as a hedge against economic uncertainty, inflation, and instability.
The bill proposes acquiring 1 million BTC over 5 years, purchasing up to 200,000 BTC annually.
At the current market price of Bitcoin, this amounts to $57 billion.
This quantity of BTC represents 5% of the total supply, comparable to the US share of global gold reserves (4% of the world's gold supply, or 8,133 tonnes).
Currently, the US government already holds 203,239 BTC (around 1% of total supply) through the US Marshals Service, which seized them in various operations.
The Lummis bill suggests reclassifying these Bitcoins as a strategic reserve and carefully purchasing the remaining 4% on the open market to avoid significant market fluctuations.
The acquired BTC will be stored in a geographically distributed, multi-signature cold storage system, managed by the US Department of Treasury.
The bill proposes using unrealized gains from revaluing the Federal Reserve's gold certificates to finance the purchase of Bitcoin.
Currently, the Federal Reserve holds gold certificates valued at $11 billion based on the official US government price of $42.22 per ounce, set in 1973.
However, today’s market price of gold is approximately $2,400 per ounce, creating a value gap of over $600 billion.
Revaluing the gold certificates at today’s price would unlock these unrealized gains to purchase BTC without involving taxpayer funds.
The Treasury would not need to sell any hard assets like gold.
Minimum holding period: 20 years — during this time, no Bitcoin can be sold or used, except for the repayment of federal debt.
After the minimum holding period, Bitcoin sales will be limited to 10% of the reserve every 2 years.
Today’s global financial system is based on trust in the US dollar.
However, the rising US national debt undermines that trust.
The introduction of the SBR could help reduce risk, as by 2051, capital gains from the reserve are projected to cover half of the US national debt.
Historically, nations have fought to control strategic resources like gold and oil.
Since the SBR bill was announced in July 2024, China and Russia have already taken steps to include Bitcoin in their financial reserves.
For example, a Russian law allowing cryptocurrencies in international trade will take effect in September.
Estimates suggest that the introduction of Bitcoin into government reserves could increase its market cap by $1 trillion, leading to a price of $110,237 per Bitcoin.
Key figures are as follows:
Successful implementation of the SBR could extend the dominance of the US dollar and accelerate Bitcoin's integration as a global strategic asset.
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When it comes to the crypto market, market makers play a key role in ensuring liquidity and price stability.
One of the major players in this field is DWF Labs, which has invested in 470 projects over 16 months, attracting both interest and criticism.
Market makers are financial entities that provide liquidity to the market by offering buy and sell prices for crypto assets.
They play a crucial role in stabilizing prices and supporting new tokens, especially during their launch on the market.
Without market makers, the market would become less liquid, causing sharp price fluctuations and making it harder to execute large orders.
DWF Labs is a market maker that has quickly established itself, providing liquidity to crypto projects while being involved in multi-million-dollar deals.
DWF Labs entered the crypto scene in 2022.
At the time, the market was hit hard by the collapse of FTX and major market makers like Alameda Research.
Their rapid rise and involvement in hundreds of projects in a short period stirred up the industry.
At the Token 2049 conference in September 2023, companies like GSR and Wintermute openly criticized DWF Labs.
GSR even stated that DWF "lacks real market competence."
In response, DWF co-founder Andrei Grachev called his competitors "old antiques," accusing them of a lack of innovation.
But it’s not just about words; it's about strategies.
DWF Labs positions itself as "Web3 venture capital and a market maker."
However, many of their deals involve buying project tokens at discounted rates rather than traditional venture investments.
For example, their "investment" of $15 million in Synthetix (SNX) tokens was quickly moved to exchanges, sparking criticism over possible market manipulation.
Walter Teng, VP of Digital Assets at Fundstrat, noted that such activities could lead to conflicts of interest: acting as both a market maker and investor, DWF may influence asset prices in its favor.
DWF Labs funds its "investments" from the profits of high-frequency trading across more than 40 exchanges.
However, most of their assets are stored on centralized exchanges (CEX), raising concerns about whether these assets will be sold.
DWF Labs has invested in over 470 projects in 16 months, which has sparked a lot of controversy.
The conflict of interest between being a venture investor and a market maker raises doubts about their market strategies.
Large investments, like $15 million in Synthetix, prompt questions about the transparency of their intentions.
Despite active criticism, Grachev acknowledges that the company needs to be more transparent and explain its strategy better.
Despite the criticism, DWF Labs continues to play a vital role in providing liquidity to hundreds of projects.
Their deals combine venture capital, market-making, and strategic partnerships, raising questions about transparency.
However, with major players like FTX and Alameda exiting the market, DWF remains one of the key players.
DWF Labs is actively blurring the line between traditional venture investments and market-making.
Their deals, often labeled as "investments," are complex financial instruments that include not only token purchases but also market liquidity support, marketing services, and assistance with exchange listings.
However, the question of where the line is drawn between investments and market-making in the crypto industry remains unanswered.
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