Launched by social messaging network Telegram, “Telegram Stars” are a new in-app token available for use on the site to buy digital products and services.

Introduction of Telegram Stars

Pavel Durov, CEO of the company, said in a June 6 Telegram post, “With Telegram Stars, mini apps can now accept payments for digital services using the simplest payment method possible—in-app purchases on Android and iOS.”

Through Fragment, a marketplace mostly used for buying and selling Telegram identities, developers may trade their Stars for Toncoin (TON), the native cryptocurrency powering Telegram’s “Open Network.”

Benefits and Incentives for Developers

Durov also mentioned using Stars on Telegram to better advertise their apps.

According to Durov, Telegram will subsidize ads bought with Stars on Apple and Google, which charge a 30% fee on digital goods purchases.

“If developers reinvest Stars in advertising their app, the entire commission will be almost 0%. Releasing apps on Telegram makes more financial sense than releasing conventional mobile apps.”

“Future updates will bring extra features and functionality to Stars, like gifts for content creators and more,” Telegram wrote in a June 6 article.

Success of Notcoin and Telegram’s Growing Ecosystem

With Notcoin, one of the most downloaded applications on Telegram, the platform has had great success—35 million users in the first five months of introduction.

Notcoin is a “tap-to-earn” cryptocurrency whereby users earn NOT tokens by finishing different social tasks.

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Every month, around 400 million of Telegram’s 900 million members communicate with bots and tiny applications.

Collaboration with Tether and Market Impact

In April, Telegram launched Tether (USDT) on the TON blockchain in collaboration with the stablecoin issuer to increase the acceptance of cryptocurrencies over the messaging platform.

“[Users] no longer need to jump through the barriers of having to acquire a different type of crypto or token,” TON Foundation director of investments Justin Hyun said.

CoinGecko reports that TON achieved an all-time high price of $7.65 around 36 hours ago but has now cooled off to $7.50. Its $18.2 billion market capitalization, however, lags $7 billion from its $25.2 billion top established on April 12.