But I want my Grams! Looks like you may not be able to get your hands on those sweet, sweet Grams anytime soon, with some chatter that Telegram may actually cancel its public ICO.
The messaging platform has been in the news in recent months due to its high-profile ICO.
Initial Coin Offering.
While the messaging giant hoped to raise half of the ambitious $1.2 billion from an ICO open to public investors, recent SEC filings reveal that Telegram had already raised no less than $1.7 billion from two private sales.
And now sources believe that the company is thinking about scrapping its public sale altogether.
The reason is simple enough.
Raising money from public this way could be more trouble than it’s worth. Telegram is selling a security, obviously, and according to SEC regulations, this is something that cannot be sold to non-accredited investors, except in some cases.
Another factor is that the Telegram Open Network, or TON as it is called, has not actually been built yet.
This is the blockchain that the company is developing. And since it is still under construction, no one has received any Grams as of yet. It is basically selling IOUs to future Grams under the Simple Agreement for Future Tokens framework.
Company founders have not actually said anything about the ICO itself or TON, and all we know from the whitepaper is that the network will facilitate faster payments, file sharing, domain registrations, and more, via decentralized privacy.
An ambitious endeavor, but then again, this is something that would entail a lot of work for legal public sale at this time. The company would have to comply with KYC and AML verification processes to be able to sell to everyday customers.
Know-your-customer and anti-money laundering verification work is much less cumbersome for investors that are already identified as investors. Less so for folks who are investing for the first time.
Not to mention that there is a secondary market for Grams, whereby small investors buy these from large ones that got into the private sale.
All these factors combined means that it is unclear whether a legit public sale will happen at all.
Which probably is for the better, when you think of it.