Telegram, a cloud-based instant messaging service, decided not to go ahead with ICO plans after raising $1.8 billion from private investment. The firm also plans to use a new digital payment system on their network.
In the beginning, Telegram planned to raise $1.2 billion for their Telegram Open Network (TON) from both private and public fundraising. However, they made around $2 billion from only two rounds of private funds, so they cancelled the ICO and continued raising the money.
During the first round of private fundraising, Telegram collected $850 million. After the second round they matched that amount of money, then they cancelled raising public funds.
According to the Wall Street Journal (WSJ), the environment of regulation has recently changed. The U.S. Securities and Exchange Commission (SEC) has begun to concentrate on ICOs and company executives may be investigated because of this. Private fundraising will not be like public fundraising, and the public round will be more strictly controlled.
Telegram gives some information about future plans. Funding the new TON network technology and maintenance of the service system is an essential aspect. Also, the statement mentions a plan based on a blockchain network which is a “Visa/Mastercard alternative for a new decentralized economy.”
Telegram has stated that bitcoin and ethereum cryptocurrencies have not had no much attraction to the mass market recently because of structural defects. Since their firm has a great number of users, they are able to lead high technology to a broader field.
Photograph by Chris Ratcliffe — Bloomberg via Getty Images