ICO for $2 billion from Telegram. Skeptics are looking for a catch

The messaging service, which already has more than 200 million users, has become a universal information platform for cryptocurrency traders and enthusiasts

Telegram exchanges news and advice, or promotes new tokens by providing information about them in the relevant groups

Woody Levin left his position as vice president of DocuSign in early February and established a cryptocurrency hedge fund. Now most of the time he is busy with cryptocurrency trading, and his only source of information is the Telegram messenger. “For me, Telegram has become a window into the cryptocurrency world,” says Levin. Previously, he always had a Facebook tab open in his browser, which he refreshed several times a day, but the messenger successfully replaced it. “First thing in the morning I check Telegram and I do the same before going to bed.” 

$2 Billion ICO

By becoming the main place for discussions about token trading and various ICOs, Telegram plans to take advantage of its popularity in the crypto world. In 2018, the company is planning an ICO, the cost of which may exceed the current record amount by 10 times. Investors keeping an eye on the developments told CNBC that the Durov brothers are targeting the $2 billion mark.

Telegram was founded in 2013 by brothers Pavel and Nikolai Durov, who long before founded the social network Vkontakte, which is called the “Russian Facebook.” Telegram is a messenger similar to Facebook Messenger, Viber, WeChat, however, its feature is the encryption of messages, which helps to achieve maximum security and privacy. The service began to gain great popularity immediately after Edward Snowden released information about US government surveillance of social networks and private correspondence of users.

Blockchain messenger as an alternative to Visa/MasterCard

Now Telegram is going to sell investors the idea of a futuristic messenger based on blockchain, which, if everything goes according to plan, “by 2021 will create an alternative to Visa/MasterCard in a new decentralized economy." The development team plans to keep 4% of the total supply of tokens. With TON, app developers and publishers will be able to receive coins called "grams" and use them for exchange. Grams have a finite supply and will theoretically increase in value as demand for this currency increases..

Currently, the messenger is financed personally by Pavel Durov, who seven years ago sold his share of shares in VKontakte for $300 million. Its development team has experience building and managing large social platforms. 

Today, Telegram has no problems raising funds. Most investors believe that demand far exceeds supply, and that the ICO could raise at least $5 billion.

Risks and investor concerns

There is, however, a cynical reason to stay away from Telegram: it could increase its audience from 200 million to 675 million by 2021, the white paper says. However, if the TON token fails to fulfill all the hopes placed on it, then the grams in which investors will invest huge amounts of money will ultimately turn out to be useless and worthless. And the entire capital of the company will continue to belong to the main founders. 

“I have a feeling this is another case of a company running out of money and trying to raise money from outside to fund their operations. That’s why they decided to do this TON,” said Travis Sher, a representative of Digital Currency Group.

According to https://www.cnbc.com