As Telegram’s Toncoin Usage Grows, Failed Gram Investors Seeing Red

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A few years ago, messaging app Telegram announced that it was building a blockchain called Telegram Open Network (TON). It will have its own coin called Gram. You were going to be able to buy and sell things on Telegram using Gram. It would be as exciting as buying and selling things on Facebook with Libra, if that were the case. This. The U.S. Securities and Exchange Commission said it could rival the dollar in commerce and the Federal Reserve, no fan of cryptocurrencies except its own central bank digital dollar, placed the kibosh on Facebook’s digital currency wing, known as Dim. known as the Association.

things Fall Apart.

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Not so for Telegram, it seems. Telegram has exactly what Facebook wanted.

After Gram was struck down by the SEC, Tokencoin took its place as a new alternative to Gram, which was similar to an investment in Telegram itself. Bitcoin is different, and investing in Telegram is not. According to the Telegram press office the two are separate legal entities – a fact challenged by many Gram investors. But Tokencoin, like Gram before it, is the native cryptocurrency of the messaging app Telegram.

In January 2022, there were about 200 thousand active wallets holding Toncoins. By the end of May, this number is reaching close to 600 thousand.

The TON blockchain is one of the most profitable tech projects ever created by Russian-backed capital and brainpower. Pavel Durov is the star of the show, hailed as a saint for stalking Russian intelligence, known by its acronym FSB, before going into self-exile.

Durov came up with the idea – though perhaps not on his own – to make an initial coin offering in 2018 to build Telegram’s own digital commerce platform on the messaging app, one of the world’s largest after WhatsApp and WeChat.

Telegram raised $1.7 billion from 171 investors, including Russian billionaires Roman Abramovich and Yuri Milner; Kiwi founder Sergei Solonin; said the Russian businessman Gutseriev; David Yakobashvili, co-founder of European dairy giant Wim-Bill-Dan and others, set out to develop the project – essentially a Telegram-powered e-commerce ecosystem powered by Gram coins as the currency of choice.

village was SEC. blocked byAnd Telegram had to return the money to the investors.

On June 26, 2020, the court ordered the SEC and Telegram Group Inc. and its subsidiary, TON Issuers Inc. approved a settlement agreement to make a settlement between allegations That Telegram’s unregistered digital token (GRAM) violated US federal securities laws. The defendants agreed to return $1.2 billion to investors and pay a fine of $18.5 million,

Telegram offered investors in 2018 to receive 72% of their investment in the Telegram open network immediately or loan them to Telegram for one year, then paid in cash, grams or any other crypto with an additional 10% bonus.

Of this, about 70 per cent was returned. There was no rest. Institutional investors, including Russian investors, lost their capital Zotobi Management Limited (Igor Chuprin) – a loss of $ 280,000 – and da vinci capital – Loss of $20 million based on reporting by Forbes Russia.

For US investors, they Had to take 72% refund and exit the Gram Token project, while non-US investors had 110% chance to get of invested amount. This seems to be a Telegram decision, not the SEC. And

From where these investors sit, the Village project has been transformed into the TON (now abbreviated as “The Open Network”) project, and they are thinking that they will be forced to lock in losses rather than being forced to use those proceeds. Why could the payment not be made? Toncoin Fully Diluted market cap is approximately $5 billion, although this capital was raised by individual crypto investors, including retail investors.

According to some Telegram investors, who wished to remain anonymous due to the ongoing legal battle with the company, the core architecture of the TON network was built from funds collected from investors in Gram. The investors who are now suing Telegram say they eventually financed Tokencoin but received no return on that investment. That is the crux of the story.

“The developers of Toncoin are at risk of receiving claims from former investors of the Telegram blockchain platform,” says noted Russian venture capitalist and cryptocurrency project investor Slava Semenchuk. Forbes told Russia, “Investors didn’t get all their money back. Nothing has changed in TON, not even the code,” he was quoted as saying.

But the TON network is a separate legal entity, Telegram’s press office said. TON is unrelated, as Durov said on his social media. Even the word “Telegram” has been removed. Some investors find this suspicious.

On 12th May 2020, Durov announced Termination of the TON project. On December 23, 2021, he only expressed his support For Toncoin on your English language channel on the messaging app.

Tokencoin was always open to the general public, whereas Gram was only for a certain circle of accredited investors.

Nevertheless, Tokencoin is an investment as much as any cryptocurrency is.

In Russia, famous rapper Morgenshorn announced In January that he was buying Toncoin. Just as Elon Musk announced that he was buying Dogecoin, the price of Toncoin went up 20% after the rapper touted his crypto business. Around the same time, Morgenstern opened a news channel in Telegram, which was actively advertised in the messaging app and gathered 1.3 million viewers in a matter of weeks, fueling Telegram’s popularity and toncoin as an investment for the retail crypto brothers. An ode to.

“At some point, the Telegram community announced that the TON network was no longer a test network, but a working one, and renamed the test village to Toncoin,” Forbes Russia told Last year.

People who weren’t made full by the canceled ICO are suing to get paid from the TON network, a network they claim they invested in in the first place.

“These investors did not have the opportunity to exchange Grams for Toncoin,” said a representative of the investor group, who wished to be anonymous. “Such a transaction of Gram for Toncoin, and not just at a project trial stage, would attract the attention of the SEC and put an end to the entire Gram scam if Gram is now Toncoin.”

Of the five billion toncoins, 4.9 billion, or 99% of all coin volume, are concentrated in the hands of an unknown group of whales. Most of the coins are held in approximately 100 wallets of unknown whales, a common investor euphemism to describe major shareholders.

telegram announcement The official launch of crypto payments on the messaging app in May, and despite being the only cryptocurrency separate coins for transactions on the app, is toncoin. It is clear that the TON network and Telegram have some managerial and investor connections, if not legal ones.

Plans to make Tocoin the official Telegram coin were announced shortly after the arrival of the TON Foundation. Former Durov colleague Andrew RogozovA friend from behind in the VKontakte days – Russia’s largest social media platform.

“Facebook was unable to launch its Libra currency, but Pavel and Telegram were successful,” said one of the people involved in the suit, who did not wish to be named for the record. “It turned out that there was a need to change the name of Gram to Toncoin and make some statement that Telegram had nothing to do with it. But the facts say something else – an opportunity to integrate any other cryptocurrency into Telegram like Toncoin. have not received.”

Telegram did not confirm nor deny that some investors were not made outright. He added that the company “fully fulfilled its contractual obligations under the purchase agreements with all its investors in 2020. In addition, many investors enjoy our goodwill offer to receive 110% of their initial investment in 2021.” All the world renowned TON investors we spoke to understand the nature of the blockage we have faced and appreciate the way we handled it.

Has Telegram Violated the Agreement with the SEC? That settlement requires Telegram to return funds to investors, imposes a significant fine, and requires Telegram to notify future digital offerings. Toncoin fits the bill. he is What aggrieved investors are saying One of the world’s most popular tech founders, and arguably the go-to alternative to WhatsApp. This comes at a time when crypto is taking a beating and the patience of investors is being tested.

Telegram faces the legal risks of being sued again by the SEC, with even more serious legal consequences for both Telegram and its investors. It also puts retail bitcoin holders at risk as new claims from the SEC will trigger a wave of sales that will push the token value deeper into the avalanche all crypto finds itself blanketing at the moment.

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