- Telegram is being backed by its blockchain platform TON’s community in its heated battle against the United States Securities Commission (SEC).
- TON Community Foundation has applied to defend Telegram in the court case.
Popular instant-messaging, Telegram is being backed by its blockchain platform TON’s community in their heated battle against the United States Securities Commission (SEC). The Telegram was accused of unregistered coin offerings in October 2019 by the SEC, and the court battle has been ongoing since then, delaying the deployment of the Telegram Open Network (TON) blockchain.
SEC Clampdown on Telegram
Telegram defended that the native token cryptocurrency used on the TON platform had no inherent value and hence could not be considered as a security. Still, the SEC denied the claims and charged Telegram fraud, alleging that the company additionally did not provide enough information to their investors about their “business operations, financial conditions, risk factors, and management required by securities laws.”
The initial charges were put up against Telegram a few days before the release of TON, and the release was delayed to April 2020. Even though the network didn’t launch, development was not halted, and further improvements continued being written into the platform. Now, the community developers and the investors behind TON have stepped up and formed a non-profit foundation for funding and decentralized governance of the platform.
TON to the rescue Against SEC
The non-profit, TON Community Foundation has applied to defend Telegram in the court case. The SEC submitted expert-prepared reports claiming that the TON blockchain lacked important security features and wasn’t ready for release. The TON Community foundation shot back, claiming that the stated features weren’t necessary for launch and that the community already has over 2,000 active participants and was ready for an operational launch within a 5-second notice.
The TON Community Foundation is lead by TON Labs communications manager, Fedor Skuratov. The Foundation’s primary goal is to quickly build up TON into being a fully operational decentralized ecosystem like Ethereum using community support.
Success at proving that TON is simply a decentralized platform will also help Telegram in court to prove that there is no security value to the Gram token being distributed on TON.
The Foundation itself also follows decentralized governance where a lead Governing Council will co-ordinate developers, investors, nodes, stakers, and other members of the community to help promote TON in the fields of education, research, and development.
Telegram’s lock-up in the court proceedings prevents TON from integrating fully with the Telegram app until the case is resolved. Still, the community is very determined to push Telegram Open Networkinto deployment, and that is exactly what the Foundation hopes to achieve.