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Is Telegram’s new crypto the next Big Thing?

4min Read
Is Telegram's new crypto the next Big Thing?

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Gram is one of the hottest names in the crypto sphere, and with good reason. This unreleased coin, developed by Telegram, one of the world’s largest messaging apps, promises something truly revolutionary-mass adoption. How?
Well, Monfex Research, an analytical department of the industry-leading cryptocurrency trading platform, did an analysis of the Gram coin and came up with a few conclusions.
Gram has the potential to completely change Telegram’s monetization
The Telegram may boast a user base of over 300 million people, but currently, the company operates as a not-for-profit. Gram, however, could change all that. Monfex’s analysis shows that Gram will become the main revenue driver for Telegram and generate incremental net revenue of $4 billion by 2022.
This could be accomplished by taking the following assumptions. First, according to Telegram’s estimated growth rates, the company plans that its active monthly users will grow by 50% each year, capping at 1 billion users by 2022.
Secondly, annual net revenue per user will be around $5. This number was reached by comparing Gram’s nearest competitors, Google Pay, and WeChat Pay, who earn $6 and $5.6 annually per user, respectively.
Telegram will reach a positive net profit by 2020
Once the Gram token is released, an estimated 300 million people will suddenly have access to cryptocurrency in the palm of their hands, without needing any extra technical knowledge or equipment.
This means that these users can start transacting in Gram immediately – Monfex estimates that it would not be unreasonable to assume that up to 80% of the total userbase could immediately become Gram users.
Based on our model, we believe that by 2020 Telegram will become a highly profitable company with a double-digit net profit margin. This, in turn, will drive further interest in Telegram and raise the value of the Gram token.
Gram is set to become the first mass-market cryptocurrency
Currently, cryptocurrencies such as Bitcoin, OmiseGo, Dash, and others serve more as speculative instruments for investors and traders than a currency that you can use for everyday tasks. However, Gram has the potential to change all that, by capitalizing on its massive user base.
Telegram estimates that it will have 1 billion users by 2022-very nearly the population of India-and around 80% of them will transact in Gram. They’ll be able to send money to other Gram users, and purchase items directly from online stores, as well as take advantage of a variety of new services that Telegram is also planning to launch.
Gram’s ease of use, combined with its massive user base, means that it can truly turn cryptocurrencies from a trading instrument, into everyday usage.
Early investors will receive a substantial return on investment
A large amount of Gram’s hype is due to the fact that it raised the second-largest non-governmental ICO in history-$1.7 billion. However, only accredited investors were allowed to participate.
Those lucky participants can expect significant price appreciation for their tokens, as Telegram has committed to 1 to 1 conversion rate for Telegram token holders. This combined with the estimated $4 billion in revenue by 2022, as well as mass adoption thanks to Telegram’s massive user base, means that there are good chances for the Gram price to rise noticeably after release, significantly rewarding token-holders who were able to participate in the ICO.
Ultimately, Gram is well positioned to become the world’s first mass-market cryptocurrency, by virtue of its rapidly growing user base, its technological advances [up to millions of transactions per second], and annual net user revenue.
This means that Telegram will begin to generate healthy profits, driving interest in the Gram token, while everyday users will be able to transact, transfer money, buy and sell all from their smartphone, with no middlemen or additional fees.
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Biraajmaan covers market trends of major cryptocurrencies. As a graduate in engineering, his interests lie in Blockchain technology. With over a year as a journalist, his articles focus on US and UK markets.
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