Blum Co-Founder: "If Your Telegram Mini-App Has Less Than 1 Million Users, You're Doing Something Wrong"

At 5 p.m. on April 19, 2024, Blum launched as a mini-app on Telegram. At the time, the Blum team consisted of just six people, and their goal was to attract 100,000 users within three months. However, the team was "disappointed" when Blum reached 100,000 users just two hours after its launch. By the next day, that number had multiplied by 10, reaching 1 million users.

"We were extremely happy and surprised. This is probably one of my most memorable moments at Blum," said Igor Pugachevsky, co-founder and CPO of Blum.

Pugachevsky previously held a senior leadership position at Binance, along with Blum's other co-founders, Gleb Kostarev and Vladimir Smerkis.

One day, the three decided to leave Binance and join forces to found Blum, a decentralized exchange on Telegram that specializes in trading memecoins and new tokens. Today, Blum has about 65 million users and continues to grow, especially with the upcoming launch of the BLUM token.

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- Can you tell us about the specific circumstances under which Blum was born?

Igor Pugachevsky: In 2017, I met and worked closely with Gleb at Waves Platform—one of the first blockchains at the time, alongside Bitcoin and Ethereum. Gleb and I became good friends, and Vladimir joined us later when we worked together at Binance.

Blum came about quite naturally because the three of us shared the same vision of building a convenient, easy-to-use exchange. Our approach was different from Binance, a large exchange with strict regulations.

With the increasing number of projects and tokens, we noticed that it was very difficult for new users to buy tokens. They had to go through four to five steps: open the app to see who was selling which token, create a wallet, prepare gas fees, decide which token to buy, and figure out the next steps.

So, we wanted to simplify the process for users to access tokens before they were listed on major exchanges. We launched the product on Telegram and started building a community around Blum. In web3, it's all about community and co-creation.

Binance Labs supports this approach, as they recently invested in Blum.

- Recently, mini-apps on Telegram, such as Notcoin, have become extremely popular. What do you think is the reason for this phenomenon?

Igor Pugachevsky: These mini-apps are very easy to use. Telegram currently has around 1 billion users, most of whom know nothing about crypto. But with mini-apps, they don’t need any prior crypto knowledge. There's no need to log in or fill out forms. With just one tap, they can start using the product immediately. Notcoin’s game application became popular in a short time because it simplified the user experience.

The problem with play-to-earn games is that they can be exhausting. Normally, you just play a game and immerse yourself in its world. But with play-to-earn, you're playing while also thinking about making money, like going to work every day.

Notcoin simplified this with tap-to-earn. Users just tap on their smartphones to earn crypto. In the first three days after launch, the app attracted hundreds of thousands of users, and after a week, it reached tens of millions.

I think this made people realize the huge potential of launching apps on Telegram, which spurred interest in building more mini-apps. These apps are powered by the TON blockchain, which has over 10 million monthly active users. With all this in mind, I believe if your Telegram mini-app has fewer than 1 million users, you’re doing something wrong.

- Tap-to-earn can be an effective way to attract users. But do you think it’s just a short-term trend?

Igor Pugachevsky: Tap-to-earn is just one of many gamification mechanics to easily attract new users on Telegram. For example, with DOGS, you don’t even need to “tap” anything—just connect your wallet.

It’s similar to how Duolingo operates in web2. Duolingo looks like a game, but it’s really a language learning app. On Telegram, the gamification mechanism is even easier because users don’t need to download an app.

We live in an attention economy—when I give my attention to something, I can get a reward in return. With tap-to-earn, you’re tapping and getting crypto. This is part of the gamification and engagement mechanism that keeps users interested and coming back.

With blockchain, you can design any type of interaction you can imagine. And you can apply this not just to games, but to all kinds of products: SocialFi, wallets, marketplaces, booking apps. Most recently, we have Tada—the “Uber” on Telegram—where you book your ride and pay with TON tokens.

If a particular interaction mechanism doesn’t work, you can discard it and build another one. In the end, it’s all about finding the right way to engage and attract users.

- Do you think gamification mechanisms like tap-to-earn just waste users' time and don’t provide any long-term benefits?

Igor Pugachevsky: People spend a lot of time on web2 apps like YouTube and TikTok, but they don’t get anything in return financially—plus, their data is often sold.

In web3, it’s different. You feel like you’re part of a global community. You can participate in projects and receive rewards in return.

People love and trust Notcoin because they’ve put almost everything in the hands of the community. Similarly, at Blum, we’ve rewarded active users with $2.5 million worth of DOGS tokens, and we will continue to reward our users in many ways.

- With mini-apps gaining so many users, what do you think about Telegram’s potential to drive crypto mass adoption?

Igor Pugachevsky: We’ve been talking about crypto mass adoption for years.

Now look at Blum—we have 65 million users, and more than half of them are new to crypto. First, they receive some free tokens, then they learn how to create a wallet to store those tokens, and finally, they figure out how to convert them to fiat. Through these steps, they’re learning about crypto.

Beyond Blum, there are also users of Notcoin, Hamster Kombat, and other apps. Together, that’s around 200 million users getting introduced to crypto.

I believe the TON blockchain on Telegram is the best example of how crypto mass adoption can happen. And it’s just the beginning.

So, I believe the TON blockchain on Telegram is the best example of how crypto mass adoption can happen. And it’s just the beginning.

- Does building on Telegram put mini-apps like Blum at risk of legal repercussions, considering Pavel Durov, the platform's founder, was arrested?

Igor Pugachevsky: Pavel Durov was arrested for refusing to give the government access to user data; he has always prioritized the platform’s privacy and freedom of speech. After his arrest, there were many campaigns supporting the protection of these rights. For instance, Elon Musk tweeted, “Today Telegram, tomorrow X.”

It’s clear that governments are targeting privacy in crypto, and they are still figuring out how to regulate this space. However, compliance is crucial—we cannot operate without regulations.

While we do rely on Telegram, when operating in different jurisdictions, we ensure that we comply with the laws of the country we are in and make sure not to break any regulations.

- How is building on Telegram different from building on other platforms?

Igor Pugachevsky: Compared to web2 platforms, it’s much easier to build and test products on Telegram.

Firstly, you don’t need to apply to Apple’s App Store for approval. Secondly, when developing a web2 application, it typically takes two weeks to analyze market trends and issues, followed by two months to develop the product, and another two months to run marketing campaigns.

In web3, things move much faster—time to market is extremely important. If you have an idea and want to build something, you need to deliver it within a week. You test the product, and if it works, you scale it; if not, you move on to the next idea.

Additionally, compared to standard web3 applications, Telegram mini-apps make it easier to interact with and get feedback from users.

Normally, when someone wants to use a web3 app, they have to create a wallet, store a seed phrase, find a place to buy crypto, and connect their wallet. These steps often deter new users. With Telegram mini-apps, users don’t have to register or log in at all.

Furthermore, regular web3 applications don’t have a way to save user data, as they don’t require email addresses, which is fine because we value privacy. However, with Telegram mini-apps, developers can give users the option to either keep their information private or disclose certain details (all of which are encrypted in Telegram).

In short, building on Telegram is easier for both developers and users.

- There is an opinion that current point systems in web3 lack clear criteria, which confuses users. What are your thoughts on Blum’s point system?

Igor Pugachevsky: Our point system is designed to build and reward the community ahead of the BLUM token launch. Users participate in mini-games and earn points in return. These points will serve as the foundation for users to receive tokens once the BLUM token is launched. Recently, we also rewarded our most active users, those with the highest points, with DOGS tokens.

Point systems are common in web2 businesses, such as Starbucks. They help businesses track and map customer behavior—who uses the product regularly, who buys occasionally. So, whether in web2 or web3, points are a tool to better assess user engagement and make informed decisions.

Additionally, points and tokens are a quick and easy way to integrate gamification and attract users. This serves as the first step before we launch our main products, such as the exchange and the meme bot.

Read more: Frax Finance’s Andy Cho: From Bar Owner to a Journey Down the Crypto Rabbit Hole