Telegram has been making headlines for fairly a while now. The immediate messaging app developed by the Durov brothers, Pavel and Nikolai, has constructed a deep connection to the cryptocurrency universe and has grow to be a favourite messaging app for a lot of within the business. Its connection to the crypto group was made even deeper once they introduced an ICO, which has raised a report quantity in it’s pre-ICO part and has courted simply as a lot controversy.
The Record-Breaking ICO
In mid-February, a doc filed by Telegram with the SEC confirmed that Telegram had raised an unimaginable $850 Million in a pre-sale ICO. The ICO was out there for prime crypto buyers and choose enterprise capital companies. Their personal set goal had been $600 Million. The funds raised have been for the event of the Telegram Open Network (TON) and people who participated did so by buying the Gram token, a digital asset deliberate for use on the TON community.
Just over a month after the milestone, Telegram was at it once more. In their second pre-sale ICO they raised one other $850 Million from 94 buyers bringing the entire quantity raised to over $1.7 Billion. The second spherical of the ICO was much more vital because it got here at a time when the worth of cryptocurrencies was hitting 5-month lows and when most buyers have been very cautious of crypto investments. The beforehand largest ICO was Filecoin which had raised $257 Million, a pale comparability to Telegram. And Telegram is probably not carried out but, as sources near the Durov brothers point out they might maintain yet one more ICO.
The Telegram Open Network (TON)
Why all the thrill about Telegram’s ICO, one wonders. The Telegram Open Network (TON) is what has excited so many buyers with its promise of a decentralized platform that may embody a number of the most vital features. The TON is meant to be a scalable multi-blockchain community that Telegram touts because the long-awaited answer to at the moment’s most urgent blockchain challenges.
With a userbase of over 200 million and 700,000 every day new customers in accordance with personal studies, Telegram is uniquely positioned to turn into a dominant drive with TON, which supposedly will remedy Bitcoin’s want for velocity by having its platform course of hundreds of thousands of transactions per second in line with its whitepaper. The community may also facilitate the straightforward shopping for, promoting and transacting in digital currencies in addition to using decentralized purposes (dApps). It will supply different providers as properly together with decentralized file storage, decentralized shopping, a DNS service and an infinite sharding paradigm which can permit blockchains to merge and cut up simply with no impact on the community’s velocity.
TON’s guarantees haven’t been with out their justifiable share of doubters and critics who’ve described it as “one of the biggest scams in the crypto industry history.” The first situation that has been raised is the Durov brothers’ long-standing silence relating to the event of the community. With most tasks, the founders are all the time retaining the group within the loop about any developments however the Durovs have abstained from discussing TON, fuelling the worry that it’s not as strong as it’s praised to be.
The large quantity of funds raised within the pre-sale ICO has additionally come out as suspicious. While creating a safe and dependable decentralized community is sort of resource-intensive, the quantity raised by Telegram is somewhat eye-catching. With Telegram’s messaging app not having any monetization mannequin, rumors have been rife that this may be the Durovs’ method of getting again the cash they’ve used all this time to maintain the app operating. All these speculations are nevertheless but to be supported by any factual proof.
The Russia Ban
The record-setting ICO is just not the one factor that has put Telegram on the headlines. On February 13, the Russian authorities lastly gained a long-running battle with Telegram when a courtroom dominated towards the messaging app and gave the federal government the go-ahead to ban it from its nation of origin. The battle started after Russia handed new anti-terror legal guidelines in 2016 which required messaging service suppliers to give up their encryption keys to the federal government.
Telegram defied the regulation stating that it was incompatible with Telegram’s privateness coverage. Thus started a battle with the federal government which culminated within the ban. Telegram has said beforehand that even when it needed to cooperate with the Russian authorities, it’s unable to because the encryption keys usually are not saved in a central server however on customers’ units. Telegram’s founder described the ban as an open farce and guaranteed Russian customers that they might nonetheless have the ability to entry Telegram by means of third-party VPN providers and thru a few of Telegram’s inbuilt options.
The previous few months have definitely been eventful for Telegram. The future is much more necessary because the success of TON can be essential to the mainstream attraction of the blockchain know-how. With over 200 million customers, Telegram might turn into the mainstream poster youngster for the blockchain business whereas its failure might spell doom even for different tasks as many would lose their confidence within the know-how.