Telegram Reveals IPO Plans, Toncoin (TON) Price Surges Over 60%
Toncoin (TON), the token of The Open Network, has surged over 60% in the past 48 hours following Telegram CEO's hint at an IPO in the United States.
Telegram Reveals IPO Plans, Toncoin (TON) Price Surges Over 60%. Image: TON Community
Pavel Durov, co-founder and CEO of Telegram, disclosed that the company is considering its first public stock offering (IPO).
Similar to Reddit, the IPO strategy was mentioned in Telegram's SEC filing on March 11, with expectations to raise $519 million successfully.
In an interview with the Financial Times on March 11, Durov stated that Telegram now has 900 million monthly active users, an 80% increase over three years. They have generated millions of dollars in subscription revenue and advertising in recent years.
Exclusive: Telegram has hit 900mn users and is nearing profitability, as the company moves closer to a potential blockbuster stock market listing https://t.co/DvqLw6918i pic.twitter.com/vgf3M0oNJY
— Financial Times (@FT) March 11, 2024
Durov declared that Telegram is gradually becoming profitable, potentially within this year or the next, and they have even turned down numerous investment offers valued at over $30 billion. This is because the platform aims to pursue an IPO and keep Telegram from being dominated by venture capital. According to the CEO, his app is now valued at over $30 billion.
Recently, Telegram also announced sharing 50% of ad revenue with users and exclusive payments using Toncoin tokens. Last fall, the Open Network Foundation launched a non-custodial cryptocurrency wallet integrated directly into this messaging app.
The news of the IPO has triggered a surge in Toncoin (TON) prices. TON has risen nearly 38%, reaching a daily high of $4.4. This marks its highest level since December 2021, when the token underwent a revival.
Over the past month alone, TON has surged by 110% and is trading hands at $4.38 per token. However, the current price remains significantly below its previous all-time high (ATH) of $5.29. TON currently ranks 12th in market capitalization, with $15.2 billion USD.
Price fluctuations of TON over the past 7 days, CoinMarketCap screenshot at 10:05 AM on March 13, 2024
Launched in 2017 as Telegram Open Network, the project was shelved in 2020 due to scrutiny from the U.S. Securities and Exchange Commission (SEC). By 2022, the community revived the project, renaming it The Open Network and operating it independently from Telegram.
Nevertheless, Telegram has not entirely divorced itself from the platform that was once its brainchild. This is evident through integrations the app has made with Toncoin, as well as the token's price behavior following significant Telegram announcements.
Driven not only by IPO ambitions but also by FOMO from Notcoin, a popular game on Telegram with 27 million players, Toncoin is set to issue the NOT token on The Open Network and distribute airdrops to users in the coming weeks.
