Telegram Scraps Launching its ICO to the Public

Telegram sets pace for Other ICOs in 2018

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Cloud-based messaging app Telegram has scrapped off offering its ICO to the public. The decision was arrived at after the company raised $1.7 billion from two private ICOs.

The two private ICOs were only open to people who had a net worth of 1 million US dollars or a monthly income of $200,000. The $1.7 billion was raised by billionaires and companies from around the world. Among those billionaires is Russian Roman Abramovich. According to Cointelegraph, Mr. Abramovich invested $300 million in the ICOs. But his spokesperson refuted the claims later on and refused to offer any comment. Apart from Abramovich other investors who participated in the ICO include David Yakobashvili and Sergei Solonin. The two are founders of payment service provider Qiwi and Wimm-Bill-Dann foods. From the many who invested in the ICO, only two have openly come out and admitted to investing in the ICO.

Money Raised

The funds raised through the ICOs will fund Telegram’s messaging app development. Also, funds raised will be used in developing Telegram’s Open Network based on blockchain technology. It is also quite odd that the company was able to raise enough funds after being banned in Russia. The ban was effected after Telegram’s owner Pavel Durov refused to hand over encryption keys to the Russian government. Moreover, the money was raised after only two rounds of offering the IOCs.

The first round was held from January 29 to February 13 attracting 81 accredited investors. The 81 investors raised a total of 850 million US dollars. The second round was held later on, and 84 accredited investors participated in the raise. From the two rounds, Telegram was able to raise $1.7 billion in total. The funds raised were enough for the company and led to Telegram canceling offering the ICO to the public.

The ban on Telegram in Russian seems to have done no damage. It also shows ICOs can raise funds outside their home countries and succeed. Telegram was able to raise $1.7 billion in only two private ICOs. Its success in the ICOs show many other ICOs can be successful in raising funds outside their home countries.

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