Telegram Faces Hearing on TON ICO this October 24
Just two weeks from the expected launch of the TON (GRAM) tokens, the US Securities and Exchange Commission moved in to halt the activities of the project.
The Telegram ICO was just two weeks from releasing its TON (GRAM) tokens, after a long buildup of expectations. Then, the US Securities and Exchange Commission (SEC) moved in to announce the ICO was possibly an illegal sale of unregistered securities, with an order to stop activities related to the token sale and distribution.
The SEC took on Telegram as the next project in a long series of sanctions, where as much as 90% of ICOs were under threat for sanctions. A new hearing is scheduled for October 24, to discuss the legality of the token sale.
Telegram offered tokens to raise $1.7 billion, and entered a long waiting period, with only limited trading of GRAM-based derivatives. One of the biggest ICOs in history will now face a court hearing to start determining its legality. The Telegram ICO also attracted big-ticket supporters, including Sequoia Capital, putting a question on the value of the tokens they purchased.
The token, promising to have utility within the Telegram ecosystem, is still controversial, especially among the thousands of similar tokens recently launched. A recent poll by eToro, the European broker that expands into crypto assets, the GRAM token did not raise high expectations.
Now, it remains to be seen if the tokens manage to appeal to a wider audience. Telegram never held a wide public ICO, and there were only limited sales of GRAM tokens through several exchanges. The chief losses in case the token launch is canceled will be with the large-scale investors.
The failure of the TON ICO coincided with a recent shift in sentiment regarding Facebook’s Libra. Several founding members of the Libra Association, mostly united by their business in payment processing, left the project. The group included VISA, MasterCard, and eBay, with PayPal leaving earlier.
Telegram is one of the most crypto-friendly social media, though it has its dark side as a tool to disseminate scams, as well as facilitate crypto-based financing for illegal activities.