The Securities and Exchange Commission intervened to end the life of the TON token (Telegram's never really born cryptocurrency). Following the agreement signed between Telegram and the SEC, valued at $ 18.5 million, the company will have to return the remaining ICO funds to investors.
However, after the commissions paid to venture capitalists and after the rewards for retail investors, many analysts imagine the repayment process to be much more complicated than one might imagine.
And, for some, there is a serious risk that retail investors don't actually get all the money spent on this project.
A small summary ..
Going in order, Telegram is a private cloud-based instant messaging and voice over IP (VOIP) service, which has made security and confidentiality its strong points. The messaging application is particularly popular with users of the crypto ecosystem thanks to the privacy features offered, so much so that accounts can even "self-destruct" after a period of inactivity.
Well, its popularity prompted the company to try to monetize the platform through the debut of a cryptography and token protocol: TON which would stand for "Telegram Open Network".
Telegram raised over $ 1.7 billion from investors in the initial TON token offering in 2018. In October 2019, however, the US Securities and Exchange Commission filed a lawsuit against the company for an offer. " not registered ".
Telegram has refused to admit any wrongdoing, but this week made an agreement with the SEC to close the affair by paying $ 18.5 million in fines. Telegram also agreed to return $ 1.2 billion of the remaining $ 1.7 billion in funds raised during the ICO.
But returning those funds, after so long since the collection, and after so many passes of "hands", could be quite difficult.
Telegram's initial offering of TON coins, being a high-profile ICO, involved a more convoluted investment process than most other similar processes.
In fact, ICO investors typically send BTC or ETH to an address of an encrypted wallet in the whitelist during a pre-sale phase. At the launch of the ICO, the newly issued tokens were then deposited in a corresponding wallet for TON.
With TON, however, three-quarters of that sum were syndicated downwards to retail investors, with a premium. Along the way, venture capitalists who offered their clients exposure to the ICO would have earned quite high commissions.
As a result, not all of these funds may be fully repaired, and small retail investors may be partially burned.
Of course we are still in the early stages of this story, but the impression is that many people will be dissatisfied with the story and that, unfortunately, many people will lose some of the funds deposited.
And what do you think about the story? In my opinion, Telegram has the DUTY to reimburse those who believed in the project at the cost of losing money themselves.
Let me know yours in the comments and, as always, thank you very much for making it this far. Until next time!
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