Social media and messaging have become a core part of the internet and the modern human experience. Facebook, the world’s largest social network, announced earlier this year that it plans to release a private currency, though this has run into trouble with regulators around the world. On the other hand, the announcement of a cryptocurrency by the messaging application Telegram, the Telegram Open Network, or TON coin, has been relatively hassle-free. The launch date of this coin is expected in late October 2019. With Telegram’s ability to leverage over 300 million active users, along with pre-existing networks and systems to take advantage of the fact, we believe that a native cryptocurrency for social networks have the potential to massively change how the network functions from a business perspective, as well as boost revenue and margins on a long-term scale.

When this native cryptocurrency is introduced (native meaning a cryptocurrency fully crypto trading integrated with the app and requiring no additional software to use) to Telegram, it will herald the launch of a new crypto-based economy. Existing revenue can then be supplemented with payment commissions on cryptocurrency. These payment commissions will be taken from purchases using telegram tokens, made by users for digital and physical goods such as paid content, subscriptions, or additional features. This could be sold either by merchants, or by Telegram itself.

This article will examine the assumptions stated above by looking at a business case for the telegram coin, known as the Gram, and analyzing the consequences the gram coin may bring to Telegram’s margins and revenue.

Despite the popularity of cryptocurrency, they have yet to deliver on a core promise – the ability to be used for ordinary transactions, like paying bills, buying groceries, and otherwise everyday tasks. Not a single cryptocurrency, (including the market leader Bitcoin) has reached mainstream adoption – instead, they have remained mostly a speculative investment. Existing cryptocurrencies are almost solely used by traders and investors instead of consumers.