Securities and Exchange Commission Blocks Telegram’s Planned ICO

In January 2018, it was revealed that Telegram, an encrypted messaging app, plans to launch its own blockchain platform and native cryptocurrency. The blockchain platform is called Telegram Open Network.

Telegram is already a well-established messaging app, popular among crypto enthusiasts around the world. That’s one of the reasons why in its pre-ICO sale, Telegram managed to raise around $500 million.

The company will fund the launch of its blockchain platform with an ICO, which has the potential to become one of the biggest so far.

What is Telegram Open Network?

sec Telegram

Telegram Open Network (TON) is a blockchain project created as a fast and secure platform that is able to process millions of transactions per second. According to its 132-page white paper, the blockchain platform combines both centralized and decentralized infrastructure.

Telegram’s founder and CEO, Pavel Durov, wants to launch Telegram Open Network as a payment option independent of governments and banks.

The native utility token is called Gram, and in addition to being app-related, the token will be available for external use as well.

With more than 200 million active users, it’s expected that Gram will become one of the world’s most adopted cryptocurrencies.

Still, not everything goes smoothly.

SEC files an emergency action and restraining order of Telegram’s ICO

sec telegram

Late Friday, SEC announced it has filed an emergency action against TON’s planned token sale. According to the SEC complaint, Telegram started to raise funds in January 2018, and it sold around 2.9 billion tokens, Grams. 171 buyers bought the tokens for a total of $1.7 billion.

The company promised its investors that it would deliver the tokens by no later than October 31, 2019. However, that didn’t happen.

Moreover, SEC claims that Telegram hasn’t registered offers and sales of the tokens, which are considered as securities.

Now, we’ll have to wait and see what’s happening with probably the largest private ICO in history.

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