Telegram is planning an Initial Coin Offering which is being described as ambitious. The company which owns the popular messaging up wants to raise $1.2 billion which would be the largest crypto token sale ever done. Telegram which has more than 200 million users wants to bring cryptocurrency payment option to its people.
It intends to decentralize communication through its proposed Telegram Open Network with several services like anonymous browsing and buying with its new crypto tokens known as grams. Kyle Samani of Multcoin capital saw the ICO as too ambitious and declined to invest in it because of its broad scope. According to him: “My concern as an investor is diluted effort and focus.”
Cryptona understands that the TON is a blockchain protocol based on peer to peer movement of funds between the users and investors. The technology will interact with the Telegram messaging app which was launched on 2013 in Russia. Reports indicate that of the $1.2 billion $500-$600 million was the goal of the company on presale while the other $600-$700 million will be offered publicly.
The company wants to raise funds from accredited investors before the network is actually built to avoid having problems with securities laws. Thus, they are using a Simple Agreement for Futures Tokens (SAFT). The grams which will be delivered to the SAFT investors can later be sold again to consumers.
Telegram even though they have not talked about the plan they will be the most mainstream company to raise crypto tokens. The other social media that used ICO before is Kik which raised $98 million back in September.
There is a possibility of success.
According to Joe DiPasquale of BitBull Capital: “There are many hedge fund managers who are talking about the TON ICO. Telegram is beginning to own the chat space for the people in crypto and the use of the app is increasing due to the app’s security and ease of use. It’s even now the platform of choice when it comes to crypto discussion thus attraction a lot of attention when reports about their ICO came out.”
DiPasquale have been optimistic about telegram saying that they might raise the $1.2 million ICO because of their success as a communication platform. The ICO plan is believed to have been started last week and the Ton-draft is believed to have been drafted in the Russian language. The draft in circulation does not have the details of the plan and does also not have the account of the TON system.
Part of the available document reads that:
“The current state of Blockchain is similar to automobile in 1870. It’s very promising and has been brought up by enthusiasts, it’s also efficient and very complicated to appeal to mass consumer.”
For the start about 5 billion grams will be generated with Telegram retaining 4% of that and 44% of the grams being sold during the ICO. The other 52% will be retained by the TON reserve to reduce the chances of speculative trading and maintain flexibility during the start stages of the project.
The sale is likely to start in this first quarter of 2018 and the SAFTs will convert into grams in the fourth quarter of this same year. More to that the Telegrams control part will be rolled out to become a non-profit foundation by 2021.
According to Telegrams former Chief technical officer Anton Rozenberg who left the company in April 2017, the cryptocurrency plan have come too fast since when he was there was no talk of the same. According to another investor Eduard Gurinovich who is also planning to launch an ICO in March: “Gram has the chance to compete with Bitcoin. This is because it is declared, essentially as a new dawn for p2p. For that reason it’s likely to realize its full potential. It will be a new accounting currency and not an investing one.”