V3V Ventures, a $20 million VC fund that invests in start-ups and cutting-edge technologies in crypto, NFTs, and Web2 and Web3, has invested in a number of prominent Telegram usernames.
The fund has invested $5 million acquiring usernames such as: @buzz, @trade, @startups, @ether, @trading, @venture, @insta, @anime, @freelancer, and @trade. V3V regards these "bluechip" or "vanity plate" usernames as a solid investment because they are easier to remember and promote to gain large numbers of followers.
This reminds us of speculators who purchase desirable URLs – a speculative way to try to turn a profit, though it can be effective. However, according to Mr. Buzz, the undoxxed spokesperson for V3V, the goal is to build some of these addresses into effective sources of news and information to reach crypto users. Mr. Buzz's eponymous Telegram group, which shares investment and lifestyle insights from a self-described whale and VC crypto investor, has over 5.5 million followers.
How many crypto enthusiasts use Telegram?
According to a survey by CoinGecko, 73.8% of crypto users get their blockchain information primarily from social media. Twitter (X) is the leader, with 41.7% of those surveyed spending most of their time there, followed by Telegram at 21.5% and YouTube at 20.8%. Crypto news websites lag behind with just 5%
As of late August 2024, there were 950 million Telegram users and 5 million premium Telegram users. According to the report, 58% are between ages 25 and 44, and 53.2% are male.
Telegram was already demographically aligned with key users for crypto, but with the rise of The Open Network TON/USD blockchain, and the integration of stable coins and in-app transactions on Telegram, the platform has grown as a home for crypto enthusiasts. According to TON Stat, TON Blockchain supports 7,734,371 transactions daily on average.
Is Telegram content an effective business?
Although Telegram groups offer no promise of objectivity, they effectively command an audience’s attention.
V3V Ventures acquired Metaverse.sg for $3 million and has turned it into one of the most popular and fast-growing digital Web3 communities in Asia. On Metaverse.sg, founders can showcase their projects to an engaged audience that, according to V3V, has an aggregate portfolio value of greater than $650 million—a figure drawn from the complete digital holdings value aggregated from members' digital wallets.
Benzinga spoke to Mr. Buzz from V3V who said that his channel is focused on addressing user needs in a non-prescriptive way.
"We started from scratch by actively listening to user feedback to understand user needs. We've adapted our content accordingly, which led to strong organic growth through word-of-mouth. Unlike other channels that focus on ‘signals,' we provide analysis and our take on the news, allowing users to draw their own conclusions. This independent, non-prescriptive approach seems to resonate with the audience," Mr. Buzz said.
Mr. Buzz explained that neutrality is a goal of his channel.
"Our content aims to maintain neutrality by focusing on general market insights and trends rather than promoting specific investments. It's a mix of personal insights and industry analysis, allowing readers to interpret the content without overt biases."
Benzinga asked where the majority of users in his group are located geographically, but he explained Telegram doesn't provide geo statistics, though from their own observations the majority of users are located in Asia. He said there are differences in the interests of Asian vs. U.S. and European audiences.
"The U.S. audience on Telegram tends to be more interested in politics-related content, while the Asian audience prefers financial news, especially related to Singaporean startups, funds, and investments."
In reference to building the channel audience, Mr. Buzz said: "It took about six months to build a large audience. We invested heavily in creating quality content and developing a strong brand. In particular, we invested in ads and acquired search traffic usernames that helped generate organic growth."
V3V intends to expand the content offered by their crypto news and information channels on Telegram.
"V3V is planning to expand the editorial team and experiment with new content formats, including interactive engagement options. Telegram offers a lot of opportunities, and we aim to test what resonates best with our audience."
Ultimately, they see their channels as alternatives to traditional crypto news sources. They believe that since Telegram already has such a large portion of the audience and so many ways to interact and even transact on the platform, this will be a winning equation for the fund.
"We believe Telegram channels have unique advantages, such as direct engagement and community-driven content, which can compete with traditional media and influencers."
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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