TechCrunch reports that messaging startup, Telegram, has announced a plan to launch its own Blockchain platform and new cryptocurrency, allowing payment on the application. Multiple sources have said that the Telegram Open Network or TON will be a new ‘third-generation’ Blockchain with superior capabilities.
Along with private pre-sales, ranging into hundreds of millions, TON’s launch will be funded with a massive Initial Coin Offering. This particular ICO is potentially one of the largest ICOs till date.
The scope for a cryptocurrency inside a messaging app is mind-blowing. And this gives the Telegram’s payment system unmatched independence. Which is something co-founder, Pavel Durov, openly covers because he lost his last company.
With Telegram adopting cryptocurrency, it allows its users to bypass remittance fees while sending funds and making cross-border payments, it allows users to transfer funds anonymously thanks to the encryption of the application and more.
Telegram is looking at raising up to $500 million in pre-ICO sales. Though they haven’t set a definitive date, it could happen as early as March 2018. The $500 million bar gives it the potential to be the largest private sale since Tezos, which raised $230 million.
The point of pre-sales is to attract the big investors. And people outside Durov’s inner circle will need to buy-in at least $20 million.
Though the ICO is to launch Telegram’s new and very own currency, the pre-sales will not be dealing in and accepting Bitcoins and other altcoins. And all deals will be made in fiat currencies only.
Objectives of TON
Using their 180 million users, Durov’s idea to launch their own native currency, potentially makes Telegram the kingmaker of cryptocurrency. According to Telegram’s white paper, the new currency is going to be called “Gram”.
Why A New Blockchain?
Pavel Durov is looking for a cryptocurrency that will scale fast and work with and/or on the existing platform. And because a totally decentralized network will not scale, Durov has decided to combine both centralized and decentralized structures for TON. This is the main reason for creating its own Blockchain.
Creating a decentralized Blockchain solves two of Telegram’s problems. First, it creates a full-blown cryptocurrency economy inside the app. It also insulates the cryptocurrency and app from external attacks.
The white paper released by Telegram is a huge announcement and all eyes in the cryptocurrency world are on them and their presale ICO.
What does this mean for cryptocurrency? And who, do you think, are the big investors that are going to get onboard with Telegram? Tell us in the comment section below.