Telegram’s Cryptocurrency Is Officially Dead, And It Is The Biggest ICO Failure In History

May 13, 2020 / by Crypto.IQ

Telegram Founder Pavel Durov has announced that the Telegram Open Network (TON), and the Grams cryptocurrency which was sold in a $1.7 billion initial coin offering (ICO), will never see the light of day. Quite simply, TON and Grams are dead before they could even launch, and this is the end result of a protracted legal battle between Telegram and the United States Securities and Exchange Commission (SEC).

The achilles heel of Telegram was that they accepted funds from United States investors during the ICO, putting Telegram in violation of securities regulations. Telegram tried to fight the SEC, but it seems the SEC always wins these cases.

Notably, Durov did not mention the refund situation at all in the announcement. Previously Telegram said investors can only receive 72% refunds. This means Telegram will be keeping $500 million out of the $1.7 billion raised in the ICO.

That being said, it remains to be seen if Telegram can get away with only partial refunds. The SEC case against Telegram is not over and the SEC will likely be pushing Telegram to give 100% refunds.

On a final note, the Grams ICO was the 2nd biggest ICO in history, with only EOS’ $4 billion ICO being larger. Therefore, the Telegram/TON/Grams ICO is the biggest ICO failure in history.

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