Analysis of the Crypto Assets Industry's Dependence on Telegram and Potential Risks

Overview

This report analyzes the potential risks brought about by the cryptocurrency market's high dependence on Telegram, using the ban on Telegram in Vietnam as an example to discuss the structural vulnerabilities exposed by this dependence.

Main Points

• Platform Dependency Risks Emerged: After Vietnam banned Telegram in June 2025, user activity in major Crypto Assets communities plummeted by 45% within a few days, highlighting the industry's serious reliance on a single communication platform.

• Scarcity of Alternatives: Although there are alternatives like Discord and Signal, they cannot fully replicate Telegram's global reach, privacy features, and native encryption user experience. Currently, there is no platform that can compete with it on scale.

• Increased Regulatory Pressure: Governments around the world are strengthening their scrutiny of Telegram under the guise of "digital sovereignty", targeting its stance against data sharing. However, Telegram has recently begun cooperating with authorities in certain regions, alleviating some market concerns.

The Role of Telegram in the Crypto Assets Market

Telegram has become a major communication platform for the global Crypto Assets community, thanks to its strong privacy protection, scalable group chats, and bot integration features. It has deeply integrated into the structure of the Crypto Assets market, becoming an indispensable part. Imagine a major industry event without Telegram, and its level of deep integration becomes evident. Currently, an ecosystem of Crypto Assets without Telegram is almost unimaginable.

Vietnam's Comprehensive Ban on Telegram Incident

On May 21, 2025, the Vietnamese Ministry of Information and Communications issued an order requiring all telecommunications operators to block Telegram services by June 2. This move immediately sparked chaos in Vietnam's Crypto Assets ecosystem. Although many users turned to VPNs, this was only a temporary and incomplete solution.

For average users, accessing Telegram through a VPN is too cumbersome. As a result, many people have completely withdrawn from participation. In just a few days, the average viewership of the top ten crypto asset communities in Vietnam dropped by over 45%.

In response, community organizers began exploring alternative platforms. The activity on the Vietnamese server on Discord surged, and some communities attempted to use local messaging applications. However, none of these alternatives could replicate the unique advantages of Telegram. Despite the ban, most users still rely on Telegram through VPNs.

Analysis of Telegram Alternatives

The regulatory pressure on Telegram reveals the serious dependence of the Crypto Assets industry on a single communication platform. While VPNs provide a short-term solution, they pose significant barriers to ordinary users. This has prompted the industry to actively seek alternative platforms.

Discord has become the preferred choice for many communities, but it lacks the mobile simplicity of Telegram. Signal has strong security features, but the tools it offers for crypto use cases are limited. Other regional applications like Zalo or WhatsApp do not align with the global nature of the crypto ecosystem.

Currently, the encryption industry has not found a viable alternative to Telegram. There is no widely adopted communication platform that can operate seamlessly across borders. Telegram's unique position as a general secondary platform gives it a kind of neutrality that transcends national boundaries, making it difficult to replace.

Regulatory Risks Faced by Telegram

Governments in many countries are strengthening their scrutiny of Telegram under the banner of "digital sovereignty." This is mainly due to Telegram's strong privacy policies and its refusal to share user data. For many governments, the inability to monitor encrypted communications on the platform is a core concern.

Countries that have taken measures typically adopt one of three strategies: a comprehensive ban, a temporary lockdown targeting specific events, or selective filtering. These precedents suggest that there may be more restrictions in the future.

However, Telegram's strategy is shifting. The company has started taking steps to improve compliance, such as publishing transparency reports. Although the scope is limited, Telegram now shows a greater willingness to cooperate with government demands, which may reduce the risk of facing immediate sanctions in major markets.

Potential Impact of Telegram's Comprehensive Ban

Although the possibility of a global ban on Telegram is low, if it occurs, the initial reaction may be similar to the case in Vietnam. In the long term, users will migrate to alternative services, especially those platforms with region-neutral characteristics.

Signal is a potential candidate, while the upcoming XChat may be a stronger competitor. However, the more direct risk lies in the potential impact on the TON Foundation. Although the TON Foundation is separate from the official Telegram, the two are closely related. An expansion of the ban would make this integration a risk point.

Conclusion

The encryption ecosystem relies not only on Telegram but also on multiple single points of service within its infrastructure. If these structural vulnerabilities are not addressed, the industry will continue to be exposed to sudden external shocks. Reducing over-reliance and achieving platform diversification have become necessary survival strategies.