Telegram, the popular social messaging platform, has introduced a new in-app token called “Telegram Stars,” designed to facilitate the purchase of digital goods and services within the app. This new currency aims to streamline payments for mini-apps on both Android and iOS platforms, providing a simple and efficient method for users and developers alike.
Introducing Telegram Stars
Pavel Durov, CEO of Telegram, announced the launch of Telegram Stars in a post on June 6. He highlighted the ease with which mini apps can now accept payments for digital services using this new in-app currency:
“With Telegram Stars, mini apps can now accept payments for digital services using the simplest payment method possible – in-app purchases on Android and iOS,” Durov stated.
Developers can convert their Stars into Toncoin (TON), the native cryptocurrency of Telegram’s “The Open Network,” through Fragment, a platform commonly used for buying and selling Telegram usernames. This integration not only simplifies transactions but also enhances the usability of Stars within the Telegram ecosystem.
“They can also use Stars to further promote their apps on Telegram,” Durov added, indicating that Stars will play a vital role in the app’s internal economy and marketing efforts.
| Feature | Details |
|---|---|
| Currency Name | Telegram Stars |
| Usage | Purchasing digital goods and services within Telegram |
| Conversion | Stars can be swapped for Toncoin (TON) via Fragment |
| Promotion | Developers can use Stars to promote their apps on Telegram |
Incentivizing Development and Advertising
One of the significant advantages of Telegram Stars is its potential to subsidize advertising costs on platforms like Apple and Google, which typically take a 30% commission on digital product sales. Durov emphasized how this new currency could economically benefit developers by offsetting these costs:
“If developers reinvest Stars in promoting their app, the overall commission will be nearly 0%. As a result, launching apps on Telegram makes more economic sense than launching traditional mobile apps.”
This strategy is aimed at encouraging developers to create and sustain digital products on Telegram by reducing the financial barriers associated with advertising and sales commissions. Future updates to Stars are expected to introduce additional features and functionalities, such as gifting options for content creators and more.
Telegram has already seen notable success with its previous ventures in digital tokens. Notcoin (NOT), one of the platform’s most popular apps, amassed 35 million users within the first five months of its launch. This “tap-to-earn” token rewards users with NOT tokens for completing various social challenges, showcasing the potential for engagement and growth within Telegram’s ecosystem.
Currently, over 400 million of Telegram’s 900 million users interact with Telegram bots and mini apps each month, highlighting a substantial user base that could benefit from and utilize Telegram Stars.
| App | Users | Function |
|---|---|---|
| Notcoin (NOT) | 35 million in 5 months | Tap-to-earn token for social challenges |
| Telegram Bots & Apps | 400 million monthly users | Interaction with bots and mini apps |
Enhancing Cryptocurrency Integration
In April, Telegram expanded its cryptocurrency offerings by launching Tether (USDT) on the TON blockchain as part of a partnership aimed at driving more cryptocurrency adoption through its messaging platform. This initiative was intended to simplify the user experience by eliminating the need for users to acquire different types of crypto or tokens to participate in Telegram’s ecosystem.
“[Users] no longer need to jump through the barriers of having to acquire a different type of crypto or token,” explained Justin Hyun, director of investments at the TON Foundation, during an interview with Cointelegraph.
| Date | Event |
|---|---|
| April 2024 | Launch of Tether (USDT) on the TON blockchain |
| Goal | Simplify crypto adoption and transactions within Telegram |
The introduction of Telegram Stars comes at a time when Toncoin (TON) has been showing strong market performance. According to CoinGecko, TON recently reached a new all-time high price of $7.65, although it has since settled to around $7.50. Despite this fluctuation, TON’s market capitalization remains robust at $18.2 billion, although it is still below its peak of $25.2 billion set in April.
| Metric | Value | Comment |
|---|---|---|
| TON All-Time High | $7.65 | Reached shortly before Telegram Stars launch |
| Current Price | $7.50 | Slight decline from the all-time high |
| Market Cap | $18.2 billion | Strong but below the $25.2 billion peak |
The launch of Telegram Stars marks a significant step in Telegram’s efforts to integrate more deeply into the digital economy and cryptocurrency space. By offering a seamless payment solution and incentivizing developers, Telegram is positioning itself as a formidable player in the digital goods and services market. With future updates promising even more features, Telegram Stars could become a central component of the platform’s strategy to drive engagement and economic activity within its vast user base.
Featured image credit: Dima Solomin via Unsplash