Popular messaging service Telegram could be readying the largest pre-ICO ever recorded with the view of raising $500 million to fund its blockchain platform and cryptocurrency.
As we reported late last year, Telegram could be preparing to launch its own blockchain platform dupped the ‘Telegram Open Network’ with the view of affording citizens of repressive governments with the ability to transfer money through the app.
Now, TechCrunch reports – citing multiple anonymous sources – that the instant messaging service is readying its own Initial Coin Offering with the view of raising a whopping $500 million USD.
Telegram would reportedly seek to launch its ICO in March this year; accordingly, the company may move offer a pre-sale before opening a wider token sale to retail investors.
Reportedly, pre-sale investors would need to place a minimum buy-in of $20 million USD, and that investors would need to transact in fiat currency, as opposed to Bitcoin or Ethereum, to buy-in early.
The move is reportedly a bid to secure some form of institutional investment to entice retail investors to take interest in Telegram’s newest project.
Should the service proceed with the launch of its own blockchain, its cryptocurrency platform could immediately reach over 180 million active users – making the platform one of the most accepted digital currency systems yet seen.
The Telegram Open Network, as the project will apparently be called, will develop a cryptocurrency-based utility to rival the likes of WeChat; reportedly, the Telegram Open Network would enable users to hold both the cryptocurrency (apparently called the ‘Gram’) as well as fiat currency in a wallet.
TechCrunch claims that of a capped supply of 200 million Grams, four percent will be reserved for Telegram’s development team with a four year vesting period, while the messaging service itself reportedly plans to retain ‘at least’ 52% of the entire market supply to protect the burgeoning cryptocurrency from speculative trading and to maintain flexibility.
Accordingly, the cryptocurrency would be listed on exchanges as well as inside the app itself.
Visualising the Telegram Open Network
The Telegram Open Network would debut with the promise of introducing a partially decentralized blockchain that could empower users in repressive nations around the world to become part of a global economic system.
Telegram has gathered acclaim for its focus on privacy – the service was one of the first instant messaging applications to offer end-to-end encryption, and the application itself remains popular among cryptocurrency enthusiasts who have used the platform to exchange trade recommendations in the past.
The service may well find a home in nations with troubled economies – cryptocurrencies such as Bitcoin and Dash have found safe havens in countries such as Zimbabwe, where rampant inflation has rendered fiat currency a problematic means of exchange.
What are your thoughts? Should Telegram proceed with its own cryptocurrency project? Be sure to let us know your opinion in the comments below!