Telegram Executives Cancel Their ICO After Raising $1.7 Billion In Private Funds
The Telegram ICO has been one of the most hyped, up and upcoming cryptocurrency crowdfunding in years. The famous messaging app, widely used by cryptocurrency investors to get their insights, raised $1.7 Billion in private funding from 200 investors. After the private phase, they had plans for the public to participate in an ICO. The executives decided against their scheduled ICO since they have raised enough money to pursue their project.
The Wall Street Journal reported that Telegram’s initial plans were to raise $1.2 billion dollars to build their TON network evenly split between private and public rounds of fundraising. After it raised a reported $850 million in its first round of private investment in February and then matched that number in another private round in March they decided to cancel the public funding round.
ICOs has been under scrutiny ever since their mass attraction of investors. The SEC has been handing out subpoenas to almost every ICO offering their tokens to American investors. A lot of projects have failed and left investors wondering where their money ended up. Blockchain startups have been looking elsewhere to raise funds, projects such as DFINITY and now TON are dealing less with public funding foro
precautions and protecting investors. A lot has changed since TONs planned ICO and now with enough funding to startup their blockchain project, they can go straight to work.
This has to be a blow to a lot of cryptocurrency investors wanting to partake in the public funding of Telegrams Open Network since its promise of success is enormous due to the team behind the project, the problem they are trying to tackle and track record of delivering.
Telegram offers a secure messaging platform encrypted against outside parties. Their CEO, Pavel Durov is known as the Russian Mark Zuckerberg after launching VKontakte (another social platform), which he sold in 2013 to startup Telegram. Now Telegram offers secure messaging to over 200 million users worldwide and 70 billion messages across the network.
Plans for The Telegram Open Network was to build a multi-blockchain Proof-of-Stake system designed to host a new generation of cryptocurrencies and decentralized applications. Launching a scalable, faster, and more efficient blockchain needed a lot of funding, and TON just got that.
The competition to beat Ethereum as the biggest blockchain platform has been very entertaining. EOS is on the rise with its Delegated Proof Of Stake consensus, NEO introduced the smart economy, and TON has its user base and backing of a bigger company. Which blockchain platform will be the biggest in 2020?