Telegram is the most widely used messaging app in the crypto community. However, there are challenges surrounding its TON blockchain launch. The U.S. securities regulator intervened and a court hearing was scheduled on the sale native gram tokens. This is a week before the network went live. Check out more about Charity Coin
NY Court to Review SEC Against TON Complaint
The United States Securities and Exchange Commission (SEC), announced last week that it had received a temporary restraining or for Telegram’s allegedly unregistered cryptocurrency offering. According to the SEC’s lawsuit, the Court for the Southern District of New York (City for the Southern District of New York) will review the case against the messenger for his ICO on October 24, according to the SEC.
Telegram’s anticipated initial cryptocurrency offering (ICO), was privately conducted last year. The sale of 2.9billion tokens raised $1.7billion. According to the commission investors based in the United States bought GRM tokens valued at approximately 25 percent of that amount, which is around $425m. Telegram Group Inc. was mentioned along with its subsidiary TON Issuer Inc.
Telegram is awaiting a court hearing in the SEC case against it’s token sale
Secondary sales were conducted before the coin’s official release date. This is considered illegal fundraising using an unregistered offering digital tokens. Gram Asia, an early investor offered to sell its rights on grams on the Japanese exchange Liquid this Summer at $4 per token. The second token offering round saw private investors pay $1.33 each.
Gram is the native token of Telegram Open Network (TON), a cryptocurrency that facilitates smart contracts. It also plans to provide users of the instant messaging app, more than 300 million according some estimates, with a digital payment system. Each person will be given a TON wallet.
Telegram is awaiting a court hearing in the SEC case against it’s token sale
The gram token is used to pay for applications that are built on the platform. These include decentralized data storage, TON based domain names registration and privacy-oriented systems and features that can bypass censorship. Grams will also be available for external use and can be traded on digital assets exchanges just like other cryptos.
SEC Lawsuit Could Postpone Gram Release Date
The project’s future has been hampered by the legal uncertainty created since the SEC announcement. TON developers wrote to investors to express their disappointment at the regulator’s abrupt crackdown. This came after Telegram attempted for more than a decade to acquire the SEC position on the offering.
The team is looking at different options for addressing the move by the commission. One option is a delayed start. Another option is to launch a reduced version of this project by the end the month, as promised to TON Investors. Yakov Barinsky (head of the Russian crypto-investment company Hash CIB) commented via Russian media outlet Tass
