Key takeaways
- Tech rivals Pavel Durov (Telegram) and Elon Musk (X) are united in fighting government overreach and digital free speech.
- The crypto community loves both X and Telegram, and plans are underway to further integrate digital finance into each platform.
- Telegram’s focus on privacy and encryption is attracting controversy, while X balances free speech with walking a regulatory tightrope.
- The arrest of Durov and ongoing scrutiny of both platforms underscore growing tensions between crypto innovation and government attempts to interfere.
The enemy of my enemy is my friend — an ancient proverb suggesting that two parties can work together against a common threat. It may be ancient, but it feels relevant, even in the dynamic world of crypto.
You might think Russian and American tech billionaires with rival social media platforms would be enemies, but the tech titans battle between Pavel Durov and Elon Musk is on hold as their attention turned to a common antagonist — the government.
Durov is the Russian entrepreneur behind the privacy-focused messaging app Telegram. His arrest by French authorities on Aug. 24 has caused outrage among the crypto-loving user base of Telegram.
Of course, the debate immediately flared on X, with support from Elon Musk, who wrote “Liberté Liberté! Liberté?” in one post and “Dangerous Times” in another.
Durov’s vision for Telegram and Toncoin
Durov is a tech billionaire, programming prodigy, biological father to 100 children, Kremlin fall guy and free-speech fighter.
It’s quite a list, but there’s one thing that gives him the biggest headache in life: free speech. Born in the Soviet Union, Durov and his brother were both math geniuses who loved coding and designing.
His coding prowess was matched by an entrepreneurial spirit, leading him to build the social media site Vkontakte (VK) in 2006, which sowed the seeds for Telegram. Durov’s relationship with the Kremlin quickly turned sour as protesters started using VK to organize demonstrations against the Russian government. When Durov refused to hand over private user data, he was forced to resign, sell his shares and open the door for those close to President Vladimir Putin to take over.
Durov left Russia and eventually launched Telegram, an end-to-end encrypted, privacy-focused messaging app. He said his experience with the Kremlin was a pivotal motivator in building Telegram. He wanted to create something without compromising backdoors to remain free from government snooping.
In a similar vein, Durov and the Telegram team began developing Toncoin (TON). The Telegram Open Network, which has since rebranded as The Open Network (TON), is a blockchain that aims to create a user-friendly platform for people to buy, store and send digital assets.
However, it was another bumpy road plagued by legal battles with the United States Securities and Exchange Commission. Telegram distanced itself from TON, but community support revived the project, with Toncoin becoming a top 10 cryptocurrency by market cap in August 2024.
While TON and Telegram are technically separate projects, ties remain close. Telegram leverages TON’s capabilities within the messaging app.
Durov’s Telegram story is one of a crypto-loving tech billionaire fighting for freedom of speech.
Enter Elon Musk.
Musk’s vision for X and cryptocurrencies
Musk’s vision appears to be more ambitious than connecting the world online. He says he is using his talents to “help humanity.” Initially, this was reserved for electric cars, dreams of galactic space flight and other projects.
That was until 2022 when he completed a $44 billion takeover of Twitter. When he first revealed his plans to buy Twitter, he explained that he wanted to preserve it as a venue for free speech. He then revealed that his goal for the platform was for “civilization to have a common digital town square.”
Now rebranded to X, Musk can move markets with even a one-word post. On several occasions, his tweets have directly affected prices in the cryptocurrency market, including his favorite coin, Dogecoin (DOGE). His impact is so substantial that when he completed his acquisition of the platform, Dogecoin’s price surged by more than 70%.
Now, Musk’s vision goes beyond a “digital town square,” with lofty plans for X to become an all-in-one financial hub. Company roadmaps show that X aims to blend everyday social interaction with complete financial tools. X is already seen as a crypto-friendly app thanks to Musk’s support for Bitcoin (BTC) and Dogecoin, and many believe that if X turns into an “everything app,” it will likely lean heavily on digital currencies.
Did you know? At one point, Musk’s Twitter bio was changed to “CEO of Dogecoin”. It caused the coin to jump 20% in value in 2020.
Comparing Telegram’s Toncoin with X’s crypto initiatives
Telegram and X are fighting similar battles for free speech and digital finance. While Musk loves to talk crypto, Durov and Telegram lead with action.
TON is not just a cool feature on Telegram; it is now a fully decentralized blockchain platform. A big part of its strength is building a Web3 ecosystem within Telegram. TON integrates with Telegram to allow the messaging app’s 900 million users to store crypto, make payments and use native Mini Apps. In addition, Telegram ads use Toncoin to make payments. For example, channel owners who enable ads can get paid in Toncoin directly to their crypto wallet within Telegram.
Meanwhile, Musk’s X platform’s efforts have been less expansive so far. The platform briefly experimented with Bitcoin tipping and non-fungible token profile pictures, but these projects haven’t been the primary focus since its takeover. Despite Musk’s “everything app” vision, X hasn’t launched a blockchain or cryptocurrency. In 2023, it was reported that a new deal with social investing company eToro would pave the way for X users to buy and sell crypto.
Telegram and TON have the edge in implementing crypto solutions. Does the same hold true for their influence in the crypto world?
Telegram vs. X: Who’s leading user adoption in the crypto space?
The Telegram vs. X showdown is a battle for supremacy across the crypto world, including attracting users. Each leverages its unique strength.
According to Statista, Telegram has the most monthly active users, with 900 million, compared to X’s 611 million. But how does that compare to crypto followers?
Telegram’s crypto enthusiasts vs. X’s followers
If you’re a crypto addict, you’ll know that Telegram and X are both satisfying hangout spots. In fact, a survey conducted by CoinGecko revealed that the platforms most used for crypto are X and Telegram.
The research shows that X leads the way, with 41.7% of the crypto community choosing the platform as the place where they spend the most time for crypto. Telegram trails with 21.5%.
X has become a place to stay up-to-date with breaking news. Musk himself has caused crypto market moves several times with past tweets. He has regularly pumped DOGE, including when he changed the X logo to a Shiba Inu dog for a short while, causing the coin to spike 30%. Plus, armies of crypto traders tuned into a recent X Spaces between Musk and former US President Donald Trump, with live listeners peaking at over 1.3 million.
In the seven days after Durov’s arrest in France, TON plummeted 25% despite the fact that Durov wasn’t arrested for anything related to The Open Network. Data also suggests that Telegram does pull serious weight in the crypto space. It tends to be less of a place to get breaking news, instead featuring communities within specific channels.
Crypto fans, developers and decentralized finance governance all cohabit on Telegram. The decentralization and ambition to avoid government control within these communities appear to draw crypto users to the privacy focus of the messaging app.
And it’s not just the different uses that decide which platform crypto users prefer; there continues to be a hot debate around security and privacy across both platforms.
Security and privacy: How Telegram and X protect users
While Musk and Durov’s free speech philosophies align, Telegram and X have different approaches to privacy and security. Let’s compare them:
Telegram:
- Telegram uses end-to-end encryption to protect users’ messages when using Secret Chats, including features such as self-destructing messages.
- When encryption is enabled, even Telegram can’t access private messages, let alone regulators and governments (if required).
- The app creates a secure encrypted tunnel for messages, lowering the chances of unauthorized interceptions, including when they reach Telegram servers.
- This privacy mechanism makes it popular but attracts controversial users, including those engaging in criminal activity.
X:
- The social media platform was not developed with a focus on privacy. Rather, it started life as a broadcast platform where groups of friends could keep tabs on each other through status updates.
- X grew into a space where people could air their opinions, break news and debate virtually any subject.
- Elon Musk acquired control of the platform to preserve this type of free speech and debate in the face of tightening regulation and government interference.
- User safety and security are higher than Telegram, as X collects biometric data to combat fraud and impersonation. Plus, it still has safeguarding teams to tackle issues like fake news and hate speech.
- Twitter uses several encryption methods, including end-to-end encrypted direct messages. This is similar to Telegram but limited to verified users and organizations.
Innovation never sleeps in the tech world, and legislation is constantly trying to keep up with it, particularly when it comes to privacy and security between Telegram and X features. This begs the question: How do government regulators view the two platforms?
Regulatory challenges facing Telegram and X
Telegram often ignores regulators, refusing to cooperate with investigations, even for major criminal cases, including the investigation into terrorists who planned the Paris attacks in 2015. This prompted Durov, usually a private man, to go on a public relations campaign to assure the world that Telegram is a secure messaging platform. He explained that bending to regulators and creating a back door for governments undermines the app.
“You cannot make it safe against criminals and open for governments. It’s either secure or not secure,” he told CNN.
Durov’s refusal to work with regulators seems to have caught up with him following his arrest in France.
Similarly, Musk’s X has been under intense regulatory scrutiny since his takeover. The European Union is investigating the platform by introducing strict new internet rules to combat disinformation and online abuse. There have also been repeated warnings from regulators, including interest from the US Federal Trade Commission, which said Elon Musk “was not above the law” following the exit of X’s top privacy and compliance officers.
Did you know? The EU has already taken Elon Musk to court over X’s blue verification tick. Musk allowed anyone to pay for a blue tick, flooding the platform with spoof accounts and fake information.
Durov and Musk rivalry: Who will dominate the crypto landscape?
The year 2024 feels poignant in crypto, decentralization and free speech on the internet. Durov’s arrest, coupled with the outcome of a looming US presidential election, could be catalysts of change for the future of Telegram and X.
Right now, tech giants Durov and Musk both flutter their eyelashes at their decentralized neighbor, crypto. The problem of centralized platforms is highlighted by the case against Durov. A known CEO and centralization bring two points of failure: central servers that can be switched off and a leader who can be arrested or coerced.
So, if regulators don’t like features such as encryption, they know where to apply pressure to lower those guard rails.
Looking at which platform will dominate the crypto landscape in the future, perhaps blockchain will move from being a “PR stunt” to a form of “self-preservation” for both companies. The first to realize that may well end up dominating the tech rivalry between Telegram and X.
Written by Marcel Deer