One of the most important messaging platforms in the world was ready to start the ‘biggest’ Initial Coin Offering (ICO) ever. But according to The Wall Street Journal, the company created by Pavel Durov has decided to cancel the ICO.
Telegram ICO Cancelled
These are bad news for those investors that were waiting for what could be one of the most successful ICOs ever. The Wall Street Journal reported on May the 2nd that the so called Telegram Open Network (TON) ICO has been suspended.
As the famous news outlet explains, the cancellation may be linked to the fact that the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) are discussing possible regulations on ICOs and tokens issued by enterprises.
The SEC and the CFTC have been proposing different ways to consider virtual currencies, digital assets, and tokens issued by businesses in ICOs. Indeed, chairman Jay Clayton explained that ICO owners are not following the security laws in the US and that they are conducting illegal operations.
With this increased confrontation fro regulatory bodies, Telegram may have decided to search other ways in order to fund its third generation cryptocurrency. Of course, the project does not seem to be stopped, just the ICO.
The TON platform may be being developed. During the first part of the year, the company raised $1.7 billion dollars from investors, an important number compared with what other ICOs tend to collect. But what is important to mark is that this sum has been achieved with the effort of fewer than 200 private investors.
Moreover, there are reports that say that private investors have been selling their tokens for over three times the value of their initial token purchase. That means that there are several investors multiplying their investment even when the ICO did not even start its main sale – and may never do it.
The messaging app created by Pavel Durov, has attracted the attention of the investors due to the fact that it could be one of the biggest ICOs ever released to the market.
The virtual currency that was expected to be launched was going to be based on a multi-blockchain proof of stake (PoS) system. The intention was to host a new generation of decentralized applications.
Moreover, another purpose of the TON network was to allow individuals and users to send and receive money in just a few seconds with very low fees. Apparently TON could become a competitor to VISA and MasterCard being able to handle more transactions per second than these two companies.
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Tags:ICOInitial Coin OfferingPavel DurovTelegramTelegram ICOTelegram ICO CancelledTelegram NewsTelegram Open NetworkTon