Telegram has reported that they have raised $850 million in their second Initial Coin Offering (ICO) in their latest notice which was signed today by the US Securities and Exchange Commission. This latest ICO was meant to support the development of a Telegram messenger app and a new Blockchain platform called Telegram Open Network.
Even though the document released by Pavel and Nikolai Durov did not show the identity of the main investors it’s estimated that 94 different entities were involved in the ICO which started on 14th March. The ICO was issued under Federal Exemption 506 which says that: “a company can raise funds and generally advice the ICO and still be deemed to be compliant with all exemption requirements as long as specific conditions are met. The main condition is that all the investors participating in the offering should be accredited and also the issuer of the ICO should verify the accreditation.
Telegram’s first offering took place in January where they managed to collect about $850 million from 81 investors. Rumors indicate that one of the investors highly participating the Telegram ICOs is Russian billionaire Roman Abramovic who is also the owner of Chelsea Football Club of London, England. The reports indicate that Abramovic invested about $300 million. When Jon Mann who is the spokesman of Abramovic was contacted, he did not comment on whether it was true or false that the Billionaire had taken part in the ICO. He, however, denied the $300 million claim.
Investors who have come out the public to support and invest in the ICO include Sergei Solonin who is the founder of Payment Service provider Qiwi and David Yakonashvili who is the founder of Wimm-Bill-Dann.
Regulation for ICOs has not been easy because they are following legislation which are 80 years old. For the ICO process and regulation process to be effective the regulation legislation needs to be amended.