Instant messaging app Telegram has finally decided to drop its cryptocurrency-focused division, Telegram Open Network (TON) after a legal battle in the US. According to The Wall Street Journal, the US Securities and Exchange Commission (SEC) brought legal action against Telegram Group Inc. for its 2018 ICO (initial coin offering) blaming Telegram of launching an unregistered securities sale.
Telegram Founder and CEO Pavel Durov said in a statement that “a US court stopped TON from happening”.
According to Yahoo News, Dubai based company raised a record sum of $1.7 billion in 2018 from 200 private investors during a massive initial coin offering (ICO) for its virtual currency “Gram”.
The TON project was similar to Facebook’s Libra project which is also facing scrutiny from regulators around the world. The CEO stated that for the last 2,5 years some of the best engineers have been working on a next-generation blockchain platform called TON and a cryptocurrency we were going to name Gram.
TON was designed to share the principles of decentralization pioneered by Bitcoin and Ethereum, but to be vastly superior to them in speed and scalability.
Telegram was launched in 2013 by brothers Nikolai and Pavel Durov. It allows some 400 million users to exchange encrypted text messages, photos and videos, and also create “channels.”
*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.
Featured Image: A_Different_Perspective