Telegram to Enable NFT Conversion for New Gifts Feature

Telegram CEO Pavel Durov has teased an exciting new feature that will allow for the conversion of non-fungible tokens (NFTs) amid the launch of the platform’s latest feature, Gifts. This new functionality introduces animated images that users can display on their profiles or convert into Telegram’s in-app currency called Stars.

Launch of Gifts

On October 5, Telegram unveiled the Gifts feature, designed to enable users to send custom messages and animated artwork to their contacts as a way to celebrate special occasions or simply express appreciation. According to the platform, users who receive these gifts can showcase them in a dedicated Gifts tab on their profiles.

Additionally, recipients have the option to convert their received gifts into Stars, Telegram’s in-app currency. This feature, launched on June 6, allows users to make payments for digital services within Telegram’s Mini Apps. Stars can also be utilized to support content creators on the platform.

Upcoming NFT Conversion Feature

As part of the announcement regarding Gifts, Durov shared in his Telegram channel that the animated artwork will soon support NFT conversions. He explained that holders would be able to convert certain Gifts into NFTs, stating:

“Some gifts are in limited supply. Later this year, we’ll introduce the ability to convert these limited-edition gifts into TON-based NFTs.”

Once converted into blockchain-based digital collectibles, these limited-edition Gifts can be utilized outside of Telegram. Durov elaborated:

“Users will then be able to auction and trade these tokenized gifts outside Telegram, with ownership recorded on the blockchain.”

Integration with Web3 Games

Apart from Telegram’s own developments, the popular Telegram-based Web3 game Hamster Kombat has also announced plans to integrate NFT support. On September 25, the viral clicker game revealed that it would incorporate NFTs as in-game assets starting in November. This integration highlights the broader interest within the Telegram ecosystem in supporting NFT functionalities.

While Telegram is actively pursuing the integration of NFTs, the broader NFT market is facing significant challenges. Recent data indicates that the market has hit its lowest sales volume record since 2021.

In September, NFT sales reached a monthly volume of just $296 million, marking the lowest total since January 2021. This figure represents an 81% drop from March, which was the strongest month for NFT sales this year.

Declining Transaction Volume

In addition to declining sales volumes, the number of NFT transactions has decreased by 32% month-on-month. The total transactions involving digital collectibles plummeted from 7.3 million in August to only 4.9 million in September. This downturn underscores the challenges faced by the NFT sector, as interest appears to be waning in the wake of earlier explosive growth.

The introduction of the Gifts feature and the upcoming NFT conversion capability demonstrate Telegram’s commitment to evolving its platform and exploring new avenues for user engagement. As the platform seeks to capitalize on the growing interest in NFTs, it remains to be seen how these features will resonate with users and influence the digital collectible landscape.

Despite the current downturn in the NFT market, Telegram’s initiatives may provide fresh opportunities for users to engage with digital assets, bridging the gap between traditional social interactions and the burgeoning world of blockchain technology.