Telegram Unveils NFT Conversion for New Gifts Feature

Telegram has announced an exciting new feature that will allow users to convert animated gifts into non-fungible tokens (NFTs). This development, teased by CEO Pavel Durov, is set to enhance user engagement on the platform and expand the utility of its in-app currency, Stars.

Key Takeaways

• Telegram introduces a new Gifts feature that allows users to send animated images and custom messages.

• Users can convert received gifts into Stars, the platform's in-app currency.

• Limited-edition gifts will soon be convertible into TON-based NFTs.

• The NFT market is currently experiencing a decline in sales volume.

Overview of the Gifts Feature

On October 5, Telegram launched its Gifts feature, enabling users to send animated images and personalized messages to their contacts. This feature aims to enhance social interactions on the platform, allowing users to celebrate special occasions with unique digital gifts.

Upon receiving a gift, users can display it on their profile's Gifts tab. Additionally, they have the option to convert these gifts into Stars, which can be used for various transactions within the Telegram ecosystem. Stars were introduced earlier this year to facilitate payments for digital services and support creators on the platform.

NFT Conversion Details

In a recent announcement, Pavel Durov revealed that some of the animated gifts will be available for conversion into NFTs later this year. This feature will allow users to transform limited-edition gifts into TON-based NFTs, which can then be traded or auctioned outside of Telegram.

Durov emphasized the potential for these tokenized gifts to become valuable digital collectibles, stating, "Users will then be able to auction and trade these tokenized gifts outside Telegram, with ownership recorded on the blockchain."

Broader Implications for the NFT Market

While Telegram is making strides in the NFT space, the broader market is facing challenges. Recent reports indicate that NFT sales have plummeted, reaching their lowest monthly sales volume since January 2021. In September, the NFT market recorded only $296 million in sales, an 81% drop from its peak in March of this year.

Moreover, the number of NFT transactions has also decreased significantly, falling from 7.3 million in August to just 4.9 million in September. This decline raises questions about the sustainability of the NFT market and the potential impact on Telegram's new feature.

Future Prospects

Despite the current downturn in the NFT market, Telegram's integration of NFT capabilities into its Gifts feature could attract users looking for innovative ways to engage with digital assets. The platform's large user base and commitment to enhancing user experience may provide a unique opportunity for NFTs to gain traction among its community.

As Telegram continues to develop its Gifts feature and explore NFT integration, it remains to be seen how this will influence user engagement and the overall NFT landscape. With the promise of limited-edition gifts and the ability to convert them into NFTs, Telegram is positioning itself as a forward-thinking player in the digital asset space.

Sources

• Telegram to enable NFT conversion for new Gifts feature, Cointelegraph.

• Telegram to enable NFT conversion for new Gifts feature: Guest Post by Cointelegraph | CoinMarketCap, CoinMarketCap.