The investment round, which was led by Runa Capital and RTP Global, will go toward funding its decentralized blockchain network.
Founded in 2013 by Pavel and Nikolai Durov, Telegram is a cloud-based encrypted messaging service with over 400 million users. Through its purported security and strict adherence to principles of censorship-resistance and privacy, the Telegram messenger app has become a popular choice for individuals seeking secure communication channels, much to the dismay of governments and regimes around the world.
The company made waves when it announced that it was building a blockchain and cryptocurrency system, called the Telegram Open Network, or TON. The project sought to address the scalability bottlenecks of existing blockchains and integrate TON into its 400-million-plus user base. In early 2018, the project raised $1.7 billion through several rounds of private sales in an initial coin offering.
As the largest crowdsale in the space to date, TON quickly caught the attention of the United States Securities and Exchange Commission. When the network was about to launch, the SEC halted the distribution of TON’s GRAM tokens to investors, citing the assets as an unregistered securities offering and questioning Telegram’s intent given that the Durov brothers had essentially been funding the platform without baking in any revenue model.
The TON codebase has since become open source, with other initiatives picking up the torch.
The SEC vs. Telegram case has vast implications for the future of cryptocurrency regulation moving forward.
Telegram's TON saga seems far from over as a disgruntled investor seeks compensation.7520
While Telegram's token project is dead, the blockchain still lives.7167
The Free TON–Dune Network merger represents one of the first decentralized M&A deals.9633
In a week that saw meme-driven investors rail against Robinhood in what coverage painted as a David and Goliath story, considerations of who exactly policy should defend flared up.57300
Gensler will likely be replacing Jay Clayton, who famously slowed down the ICO market during his tenure at the SEC. Will Gensler issue new clarity?9373
Ripple’s CEO, Brad Garlinghouse, has responded to some of the community’s concerns surrounding the SEC’s $1.3 billion lawsuit against the firm.33759
With more than 400 validators and DAOs, Free TON is now considered in mainnet status.5336
Despite Telegram abandoning TON earlier this year, the technology underpinning the project lives on. Here’s what happened next.5745
Do the new safe harbors against integration pave the way for a successful SAFT process?18332
In a record-breaking year, the SEC seized $4.68 billion — more than a quarter of which came from cryptocurrency-related firms.4914
Blockchain technology is just a tool that solves a problem, it cannot be the goal of the entire project.41261
Telegram must pay $625,000 to Lantah LLC — a small crypto firm it sued in 2018 over using the ‘GRAM’ trademark and ticker.8832
At least 20 crypto executives and customers of an Israeli telecommunications company were targeted in a sophisticated SS7 attack last month.10068
The SEC's investigation into the crypto trading firm, which paid fines of $300,000 in July, apparently continues.7794