Telegram’s new feature turns chat app into a digital marketplace: a game changer?

How Telegram is transforming its messaging app into a digital marketplace with the launch of Telegram Stars. Keep reading.

Imagine using the messaging app Telegram not only to chat with your friends, but also to purchase digital goods such as e-books, online courses, and even in-game items. This was made possible by Telegram’s latest feature, Telegram Stars, which launched on June 6.

Telegram has always been more than a messaging app, with more than 400 million monthly users interacting with bots and mini-apps. People use it to buy products, access services and play games.

With the new update, these bots and mini applications can now sell digital products and services, from e-learning resources to digital art.

Telegram Stars can be purchased through in-app purchases on Apple and Google platforms or through PremiumBot. Once you have these Stars, you can spend them on digital goods offered by various bots. Telegram Stars complies with Apple and Google’s digital sales policies and ensures smooth transactions.

In the near future, developers will even be able to convert the Stars they earn into Telegram’s cryptocurrency Toncoin (TON) via Fragment, which can then be sold on exchanges or held as investments.

To give you some background, Telegram has long supported the sale of physical goods through bots and mini-apps and accepts payments from around the world.

The scope of the platform has now been expanded with the addition of digital products. Telegram also plans to further develop Stars by offering features such as gifts to creators.

What’s really happening and why?

Let’s start with the economic aspect. Pavel Durov, Telegram’s CEO, stated that Apple and Google receive a commission as high as 30% when users purchase Stars from their platforms. But Telegram has a clever solution.

Durov said Telegram will subsidize ads purchased with Telegram Stars. This means that developers can offset their commission costs if they use the Stars they earn to promote their apps on Telegram, effectively reducing the overall commission to almost zero.

In other words, launching and promoting apps on Telegram can be more cost-effective than on traditional mobile platforms.

This approach is in line with the recent explosion of mini apps on Telegram. These mini-apps have already made Telegram the go-to place to launch new apps. Durov even called it “unprecedented in the history of social media.”

Let’s look at some success stories from the Telegram ecosystem to understand the potential impact.

Notcoin (NOT), a popular app where users earn tokens by completing social challenges, reached 35 million users in just five months. Similarly, Hamster Kombat, a crypto management simulation game, has amassed 60 million users since its launch in March.

Notcoin recently surpassed $2 billion market cap, making it the largest gaming token launched so far in 2024 as well as one of the top 10 coins by market cap.

Both of these apps have leveraged Telegram’s platform to achieve rapid growth. With the release of Telegram Stars, the possibilities of new applications are even more promising.

Telegram is also making progress in the crypto space. In April, they launched Tether (USDT) on the TON blockchain in an attempt to drive greater cryptocurrency adoption.

Soon, developers will be able to withdraw the Stars they earn in TON, Telegram’s preferred cryptocurrency, through Fragment, Telegram’s marketplace for in-app usernames and ads.

Moreover, Toncoin itself has seen a massive rise. Last Wednesday, TON reached its highest price ever at $7.76, with a market cap approaching $18 billion, making it the 10th most valuable cryptocurrency.

The increase in TON is due in part to an increase in whale activity; Transactions over $100,000 increased by 237.5% on June 3, just days before the launch of Telegram Stars.

big number #toncoin transactions (over $100,000) increased by 237.5% in the last 24 hours!

This is a significant increase $TON Whale activity signals a strategic shift in their investments and positions. pic.twitter.com/iEHWFgxcp1

— Ali (@ali_charts) June 3, 2024

What’s next for Telegram and its ecosystem?

You can expect more mini-apps and even bigger user growth. With Telegram Stars reducing promotional costs, developers are likely to flood the platform with new and innovative applications.

Additionally, as more users engage with these apps, the potential to earn and spend Stars will increase, creating a new type of marketplace.

We may also see an increase in Toncoin usage. Given the recent price increase and the ease of converting Stars into TONs, it’s likely to become even more popular.

All of this combined could lead to more partnerships and integrations in the crypto space, further strengthening Telegram’s role in the digital economy.