CEO Pavel Durov stated, “I personally bought about a quarter of the new Telegram bonds.” The messaging app is very popular, but it is not yet profitable.
Telegram, a platform for instant messaging, released $270 million in bonds this week to support its expansion until “we reach the break-even point,” as CEO Pavel Durov put it on Tuesday.
Due to its “massive growth,” Durov has admitted that the platform is not yet viable, with expenditures on the rise as it onboards 2.5 million new members each day and earlier this year reached 800 million monthly active users.
“To help fund Telegram’s expansion, I invested tens of millions of dollars into the company by purchasing nearly a quarter of the new bonds that were issued. I’ve already invested hundreds of millions over the last decade to keep Telegram online, and this is on top of that,” Durov said.
The alternative messaging service has been widely used by crypto enthusiasts. That’s in part because the firm abandoned plans to introduce its own cryptocurrency, called GRAM, which never caught on. Despite the fact that they were unsuccessful and the SEC sued them, a comparable offshoot project known as Toncoin is still active.
“Some people told me I should have purchased a mansion or a plane instead,” Durov added. However, “owning” anything (apart from Telegram, a few Bitcoin, and some Toncoin) distracts me from my job, therefore I’d rather not acquire any.” In response to the news, Toncoin price increased by 1%.
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