The messaging platform Telegram is set to dive into the cryptocurrency ocean. But is it too late to jump on the train that is speeding? The Durov brothers launched the app back in 2013 but have soundly failed to cash on it.
The messaging platform Telegram is set to dive into the cryptocurrency ocean. But is it too late to jump on the train that is speeding? The Durov brothers launched the app back in 2013 but have soundly failed to cash on it. According to information by CoinDesk, the operating expenses per year are near $70 million. Maybe the Russians are reluctant to burn their fortune anymore and an initial coin offering can probably save their application.
The ICO, if successful, would fund the development of the Telegram Open Network. The platform is proposed to deliver real-time payments and storage over a decentralized identity. There are many skeptics, however. The Durov brothers have been criticized in the past for lacking encryption competence. Having that in mind, many question how the new project will be protected from data corruption.
Furthermore, there are many uncertainties regarding the ICO. It’s not something new to see issuers keep part of the tokens for themselves. Usually, they do it with the hope that once the tokens enter the market their value will rise. This would eventually give them an additional bag full of capital. The issuers then can sell tokens just to keep the company’s operations smooth.
According to the publicly available white paper, TON Foundation will take care of tokens, not in circulation. Additionally, the Telegram staff will keep 4% of the total token supply in order to encourage engineers to continue the development of the project. CoinDesk state that participants in the ICO can buy one token called gram for $0.308 for the first grams sold for a total value of $600 million. The public price will then go up and investors could buy one gram for $0.969.
The White Paper says the TON Foundation has the right not to sell tokens from the reserves or to sell them at higher but not lower price. Token economist expert Siddharta Kalla did the calculations and explained that if the ICO follows the white paper plan Telegram and TON will raise near $14.7 billion. But this is only to happen if the project is successful and the work on the platform doesn’t meet severe challenges.
Many skeptics question the project mainly because neither document sheds light on the governance of the platform. It is only certain that the TON Foundation will hold the majority of votes during the first phase of the development of the TON blockchain. The Durov brothers require investors to trust them and their platform, while the market they are willing to enter relies on trustless systems.