Telegram Stars: Telegram's In-App Currency

Telegram Stars, introduced this June, represent virtual items that facilitate payments for digital goods and services within Telegram’s ecosystem.

Telegram limits the use of Stars to only in-app services, mainly to comply with Apple's strict listing conditions. However, this doesn't mean Stars won't have more use cases in the future. Right now, users can purchase digital goods and services from bots and mini apps, support content creators by paying to access some photos or videos on their channels, and also buy and send gifts. Developers and creators can use Stars to advertise, increase message limits, and send incentives to users.

You may not sell, withdraw, transfer or use Stars for any other purpose than those explicitly outlined in these Terms,” - the Terms of Service state.

Telegram recently introduced new features for mini-apps, including fullscreen view and motion tracking for a richer, more immersive experience. Other updates include expanded payment integration, which allows developers to offer subscriptions to their apps payable in Stars. The growing ecosystem elevates the demand for this internal currency.

Nevertheless, Stars differ from existing forms of currency, such as fiat money and cryptocurrency. They lack tokenomics, have no reserves, and can be issued in any amount and sold at a price set by Telegram. In this regard, they are much more similar to frequent flier miles and other kinds of loyalty points.

Stars $USD price hasn't changed significantly since its launch, but Telegram has reserved the right to change it at any time.

Telegram uses only third-party payment processors to facilitate Stars purchases and doesn’t hold itself responsible for any purchase-related issues. The main ways to purchase are with Apple and Google in-app purchases and @premiumbot inside Telegram messenger.

Stars can also be bought via Fragment.com, a marketplace the community uses to buy and sell Telegram usernames and blockchain numbers. Here, users can buy Stars at a discounted price compared to in-app purchases and pay in $TON.

1 Star price on different platforms:

via in-app purchases on the Telegram apps for iOS and Android - $0.025
via Telegram’s @PremumBot (without commission) - $0.021
via Fragment - $0.015

Telegram Stars are not directly redeemable however holders can use the Fragment platform to convert them to TON coins.

Stars to TON or TON to Stars?

Adding utility to a digital token is essential for its tokenomics. The $TON token of The Open Network had always been counting on a probable utility within Telegram's huge community.

Although end users cannot directly use $TON within Telegram to pay for digital goods and services due to current regulatory limitations, the messenger does direct some of its services, such as advertising on channels, to $TON.

Also, $TON benefits from Stars’ growing popularity when Stars are exchanged for $TON on the Fragment marketplace.

Interestingly, the Stars price has no direct exchange rate with $TON. The Fragment platform claims that Telegram calculates the rewards based on the equivalent $USD value of each Star at a price determined by the messenger. Fragment uses the market conversion rate to calculate the $TON equivalent.

Telegram’s latest updates indicate the company’s intent to focus on its publishing business and on providing various experiences directly within the messenger through built-in mini apps.

Stars’ usage data and statistics remain unpublished, creating uncertainty about their overall adoption and success. As the mini-apps receive more tools to bring utility to users, the demand for Stars is expected to grow, fueling the demand for $TON.

In June-July, $TON’s initial reaction to the introduction of Stars was positive. One week later, the token reached its ATH of $8.25. Toncoin growth at that moment was also fueled by the expansion of USDT on TON and the development of first tap-to-earn mini-apps. However, in August, the token dropped after Durov's arrest in France. Currently, $TON is trading at $5.42.