Telegram, the popular instant messaging service, is on its way to becoming the largest Initial Coin Offering (ICO) ever. The encrypted chat service app is planning to first raise $850 million USD in private sales, and then raise another $1.15 billion from a public ICO in March 2018.
Telegram ICO Is in Demand
Telegram app is very popular among cryptocurrency enthusiasts, and its upcoming ICO shouldn’t be any different. To date, the biggest ICO amount raised was by Filecoin — the decentralized cloud storage network that netted an impressive $257 million backin 2017.
Then, in late December last year, Telegram announced plans to launch its very own cryptocurrency and blockchain platform. The new blockchain platform is dubbed Telegram Open Network (TON), while the Telegram coin will be named Grams.
Gregory Klumov, the managing partner of crypto-trading firm Exante, said that privately accrued Grams are already a hot commodity:
“Some western funds that received a pre-ICO allocation are already offering to resell since the price of the public ICO in March will be twice as high.”
Gram Token: Road to Mainstream?
According to initial reports, investors will receive tokens under “Simple Agreement for Future Tokens.” As per the agreement, investors shall receive their tokens once the token is listed in cryptocurrency exchanges.
The agreement projects that Gram will be listed by early 2019 or no later than the end of 2019. If the token does not list by then, private investors — who are supposed to hold their tokens for 18 months — shall receive a complete refund.
In compliance with initial proposals, Pavel Durov — Telegram founder — is preparing to develop a payment platform applying multiple blockchain structures that would compete with mainstream financial players like Mastercard and Visa.
Although the recent moves from government regulators the world over have been a major concern for digital currency enthusiasts, ICOs have done well over past 12 months regardless, cumulatively raising over $4 billion. Now, Telegram wants half that sum for a single platform.
The cryptoverse is growing, to say the least.
Will this be the most successful ICO ever? Or do you think this cash grab is unwarranted? Let us know below.
Images via ClueBees, Wikimedia