KEY POINTS
- Telegram's Durov said creators can either cash out their Toncoins or reinvest them
- Telegram will split ad revenue at a 50:50 ratio from ads displayed on creators' channels
- TON hailed the collaboration as a 'defining milestone' for the TON Ecosystem
Messaging app Telegram has introduced a new ad platform that will exclusively use Toncoin on the Open Network (TON) – a layer-1 blockchain project – to make payouts for channel owners.
Telegram channel owners in nearly 100 countries can start receiving 50% of the total advertising revenue the messaging app generates from displaying ads on their channels, Telegram founder and CEO Pavel Durov announced Wednesday.
"Similar to our approach with Telegram usernames on Fragment, we will sell ads and share revenue with channel owners in Toncoin. This will create a virtuous circle, in which content creators will be able to either cash out their Toncoins – or reinvest them in promoting and upgrading their channels," Durov said.
Toncoin, which is the TON blockchain's native cryptocurrency, surged nearly 40% to over $2.92 shortly after Durov's announcement, as per TechCrunch.
Durov said only 10% of Telegram channels are monetized with Telegram ads, even as channels generate 1 trillion views monthly. With the new ad platform that will be open to all advertisers, the messaging app looks to incentivize community building. The partnership with the TON blockchain is expected to facilitate fast and secure Toncoin payments for Telegram creators.
Following Durov's announcement, Toncoin's price shot up beyond 20% over the last 24 hours. The token also saw $304.3 million of trading volume, as per The Block's Price Page.
TON also took to X (formerly Twitter) to share the good news. "Telegram channels generate 1 million impressions, with an average CPM (cost per mille) of $4.30. With 10% of this market already engaged, potential payouts of around $215M to advertisers could start already in March, all paid with $TON!" it wrote in a series of posts. The blockchain said it is an "attractive opportunity" for Telegram creators not only to monetize their channels but to grow their audiences.
2/ Telegram channels generate 1 trillion impressions, with an average CPM of $4.30. With 10% of this market already engaged, potential payouts of around $215M to advertisers could start already in March, all paid in $TON!
— TON 💎 (@ton_blockchain) February 28, 2024
TON noted in a blog post regarding the collaboration that integrating the blockchain into Telegram's monetization strategy is a "defining milestone for the TON Ecosystem" and the entire blockchain industry, as it marks "an entirely new use case for any cryptocurrency."
Months before the Telegram ad platform integration, there was already growing interest around the TON blockchain following venture capital firm Animoca Brands co-founder Yat Siu's optimistic views of the Toncoin.
Siu told Cointelegraph in December that Animoca Brands' partnership with TON late in November involved the purchase of an undisclosed amount of Toincoin. The tokens were then staked as part of the validator agreement.
"We actually think that's a tool for mass onboarding with TON wallet. There are 800 million users on Telegram using TON. What's not to be excited about?" he said at the time.
