- Telegram’s initial coin offering is claimed to be offered to private investors who have no interest in cryptocurrency.
- The judge pointed out the restriction on the reselling grams pre-launch in the telegram purchase agreement with investors shut SEC.
Telegram is the most used and trending application today in the world with above 170+ million users. It considers the tough competition of many popular social network sites such as Facebook and Reddit.
Telegram ventured into ICO with its Token GRAM and blockchain TON. The company is backed by Silicon Valley venture capital heavyweights such as Kleiner Perkins, Sequoia and Benchmark capital. The company is also supported by media like Financial Times and Recode.
Even though the company is not yet announced its public offering, Scam artists are luring people in the name of telegram and laundering money from users which the whole blame is put on telegram.
The initial coin offering is claimed to be offered to private investors who have no interest in cryptocurrency. This is criticized by the SEC (Security and Exchange Commission) that it violated section 5 of the Securities Act 1993. The Securities Act 1993 was congress’s missile gun in the war against security fraud.
Telegram doesn’t agree on these claims and argued that the act doesn’t apply to digital assets unless those assets are offered with a promise of managerial oversight and increase its value over time. The TON blockchain and Grams are rejecting being securities as it doesn’t fall under those criteria.
The recent hearing started with the open statement from the court urging on the economic realities of 1.7 billion token sale and disclaimers don’t control how the court views the value of assets. The question raised on telegram why the lockdown on digital assets in the first round of purchase agreement to which telegram did not provide a clear answer.
Telegram locked up its Gram for more than a year after the private sale. That lockdown was the reason SEC accused telegram that it provided reasonable conditions for the initial purchasers to resell their presale tokens and created a secondary market.
Bur Judge pointed out the restriction on the reselling grams pre-launch in the telegram purchase agreement with investors shut SEC. The hearing concluded with Judge assuring telegram that the judgment will be passed before April 30.
When gram investors are expecting to see the TON blockchain launch. The Judgement was reserved in the recent hearing cause of the primary injunction.