Fragment

From TON Wiki (En)

Fragment is a decentralized digital marketplace for buying, selling, and trading digital assets using blockchain technology. Launched in October 2022 by the founder of the Telegram messaging app, Pavel Durov, Fragment operates on The Open Network (TON), a blockchain initially developed by the Telegram team. Transactions on the Platform is carried out using the native currency of TON, Toncoin. Users can connect to Fragment using their Telegram account or any TON-compatible wallet.

Fragment Home Page

Platform Overview

Fragment's marketplace is divided into five primary categories:

  1. Usernames
  2. Virtual Numbers
  3. «Telegram Premium» Subscriptions
  4. Telegram Ads
  5. Telegram Stars

1. Usernames

Fragment allows users to trade unique Telegram usernames as digital collectibles. These usernames are tokenized on TON blockchain, ensuring verifiable ownership. Users can:

  • Search for available or sold-out usernames
  • Participate in username auctions
  • Place bids or subscribe to auction updates

As of June 2024, some of the highest-selling usernames include:

  1. «news» — 994,000 TON
  2. «auto» — 900,000 TON
  3. «bank» — 850,000 TON
  4. «avia» — 800,000 TON

Users can sort usernames by price, recency, or auction end time. When a user clicks on a specific username, they can access:

  • Current auction status
  • Bid history: A chronological list of all bids placed, including amounts and timestamps
  • Ownership history: A record of all past owners and the duration they held the username, providing transparency and potentially influencing the username's value based on its previous owners.

Owners of basic Telegram usernames can convert them to collectibles by logging into Fragment with their Telegram and TON accounts, selecting the username, and setting a minimum bid. Once listed, the username remains available for auction indefinitely until the first bid starts a 7-day auction.

2. Virtual Numbers

Fragment also serves as a marketplace for anonymous Telegram phone numbers, which start with the prefix +888. These numbers can be used for Telegram logins, providing an additional layer of privacy.

Key points include:

  • Numbers are available through auctions on Fragment
  • Direct sales of these numbers ended in 2022
  • As of June 2024, the most expensive number sold is +888 8 888 for 300,000 TON, followed by +888 8 000 for 130,000 TON
Anonymous Numbers

3.«Telegram Premium» Subscriptions

Users can purchase Telegram Premium subscriptions through Fragment. These can be:

  • For personal use
  • As gifts for other users
  • As giveaways to channel members to boost channel engagement.

4. Telegram Ads

Fragment integrates with Telegram's advertising system, allowing users to:

  • Run ads on Telegram channels
  • Earn revenue by displaying ads on their channels

For advertisers:

  • Complete traffic insights are provided
  • Payment can be made in cryptocurrency

For channel owners:

  • 50% of ad revenue goes to the channel owner
  • Monetization can be enabled via the channel's profile page
Telegram Ads

5. Telegram Stars

Buying Telegram Stars on Fragment

In December 2024, Fragment added the ability to purchase Telegram Stars — internal Telegram currency, used to purchase digital goods and participate in giveaways in various Telegram channels. Telegram Stars are purchased with Toncoin. For example, 350 Stars cost about 1 $TON, 1,000 Stars cost about 3 $TON, and 50,000 thousand Stars cost 155 $TON. The purchase of Stars also requires KYC verification.

Telegram Connection

The involvement of Telegram's founders, Pavel and Nikolai Durov, in launching Fragment is notable. Telegram, with its large user base and reputation for privacy-focused messaging, brings significant attention to the platform. Its unique features include TON blockchain integration, a focus on Telegram-related assets.

KYC on Fragment

KYC procedure at Fragment

In November 2024, the Fragment platform tightened its security policy and introduced mandatory KYC (Know Your Customer) user verification. This requirement applies to the purchase of anonymous numbers, usernames and Telegram Stars.

How to pass KYC

The KYC procedure includes providing a scan of your ID card, confirming your phone number and email, and creating a video selfie.

Verification is performed through the Sumsub service using artificial intelligence technologies and takes several hours. A similar KYC system is used in the «Wallet» inside Telegram.

The introduction of KYC on Fragment caused a short-term decrease in the price of Telegram anonymous numbers by about 30%, from 250 $TON to 165 $TON, but the market corrected itself over time.

On the reasons for KYC introduction

Although the company has not announced the exact reasons, it is believed to be related to TON's planned expansion into the U.S. market and the need to comply with relevant legislation.

Plans for The Open Network to enter the U.S. market were announced by former Ton Foundation president Steve Yun [1] on November 21, just days before the implementation of mandatory verification on the Fragment platform.

Conclusion

Fragment combines digital collectibles, blockchain technology, and social media assets by tokenizing Telegram usernames and phone numbers, creating a new market for digital identities. Its success will depend on several factors:

  • Adoption of TON.
  • Growth of Telegram's user base.
  • Evolving landscape of digital ownership and cryptocurrencies.
  • Integration with Telegram's premium features and advertising system embeds Fragment into the Telegram Ecosystem, offering new revenue streams for users, content creators, and advertisers. This symbiotic relationship could drive adoption of both Fragment and TON.
  • Fragment provides a unique opportunity to own part of the Telegram Ecosystem. However, due diligence and understanding the risks are essential when dealing with speculative blockchain-based assets.
  • The introduction of mandatory verification for transactions on the platform has caused discontent among some users, however, the prospects of entering new markets may open up more opportunities for the platform.

Links

  1. Fragment
  2. Telegram Ads
  3. «Telegram Premium» subscription