Telegram Caves to U.S. Regulators: TON Blockchain Launch Delayed
Telegram has experienced a costly setback as they postpone the launch of their TON blockchain that was set to take place on 30 April 2020. The launching date has been pushed for yet another year, April 2021. This is the second time they are postponing this launch forward.
If you have a keen interest in news on new cryptocurrencies and blockchain technology, you may have noticed the buzz around TON blockchain and Grams, the cryptocurrency that Telegram has been developing since 2017.
Telegram has been working towards ensuring that its blockchain and Grams could operate in compliance with the set laws and regulations. Well, evidently, that has not been achieved yet.
Given the terms of investment, Telegram has offered the investors 72% of their stake. These terms were laid down when the TON launch was first postponed in October after Telegram was sued by the U.S. SEC for running unregistered security sales.
Yesterday Telegram proposed an alternative offer to the investors. In this offer, the investors can decide to not take their 72% stake and instead lend it to Telegram until April next year. They would then receive 110% of their initial investment, making the value 53% higher than if they decided to retrieve the investment today.
If the regulators continue to prevent the launch, Telegram plans to clear its debt via equity. Currently, Telegram is solely owned by the CEO and founder, Pavel Durov. Now, the number of monthly Telegram users has grown to 400 million. Therefore, the company is assured that the value of its equity will rise to surpass the total debt that may result from the 110% stake offered.
Well, a group made up of investors and software developers may be discussing a way of launching the TON blockchain without the involvement of Telegram. “We consider it seriously,” said the TON community foundation founder. If this plan goes through, there might still be hope for this blockchain.
Investors: Terminate or Continue
According to a number of the TON investors, Telegram went silent after the March ruling and only communicated with them yesterday.
The second offer seems alluring. Will, the investors, decide to terminate their contract now or will they wait another year? According to Sergery Solonin, the terms are promising, and he believes most of the investors are going to choose to leave their money in Telegram for another year. Sergery is the founder of QIWI, a payment Fintech firm, and also a significant investor in the TON blockchain.
He believes that if Telegram is not allowed to use grams for payment, the company could find an investor within the year and pay back the investors who purchased tokens.
Some sources however disclosed that some investors would prefer that their allocated tokens be converted to shares in the Telegram company. For some investors, these tokens were the ticket to having controlling shares in Telegram’s equity even though the CEO had clearly expressed his unwillingness in selling equity.