Telegram's Blockchain Startup TOP Raises $28.5 Million Valuation Hits $1 Billion

Telegram's blockchain startup, The Open Platform (TOP), has successfully raised $28.5 million in a Series A funding round, achieving a valuation of $1 billion. This significant investment was led by fintech specialist Ribbit Capital, with participation from crypto venture capital firm Pantera Capital. The funding round, which accounted for approximately 5% of equity and did not include allocations of cryptocurrency, brings TOP's total funding to over $70 million across multiple rounds.

TOP is a key player in the development of applications for The Open Network (TON), a blockchain closely associated with Telegram, one of the world's most popular messaging platforms. With over one billion users, Telegram's extensive reach has attracted considerable interest from venture capitalists. Investors from Ribbit Capital and Pantera Capital highlighted Telegram's large user base as a key factor in their decision to invest.

The origins of TOP, TON, and Toncoin are complex. In 2018, Telegram founder Pavel Durov raised $1.7 billion by selling a cryptocurrency to support the development of TON. However, in 2019, the Securities and Exchange Commission (SEC) filed to stop what it alleged was an illegal securities offering. In 2020, Telegram and the SEC reached a settlement, with the messaging app agreeing to return over $1.2 billion to investors and pay an $18.5 million fine. Despite this setback, developers continued to work on the technology behind the scenes, including TOP's founder and CEO Andrew Rogozov.

In 2023, Telegram selected a new version of TON as its exclusive blockchain. That same year, Rogozov incorporated TOP in Abu Dhabi. TOP is the main developer behind TON’s most prominent crypto wallet, Wallet in Telegram, which has been integrated into the main menu of the Telegram app outside of the U.S. and Europe, making it available to users in regions such as Russia and Asia.

Rogozov plans to use the new capital to expand the wallet into the U.S. and Europe, addressing compliance and operational challenges. Additionally, the funds will be used to incubate other TON-based projects, including blockchain games and AI applications. In the Series A round, Ribbit Capital acquired about 4% of the company, and Pantera Capital secured around 1%. Early backers of TOP include Dubai investment firm Vy Capital, Russian investor Dmitry Eremeev, Kingsway Capital, and Brevan Howard.