Telegram Expects to Witness Multi-Billion Dollar ICO for Chat Cryptocurrency
Telegram, the encrypted messaging startup plans to launch its own blockchain platform and cryptocurrency. Telegram hopes the native cryptocurrency will be used as a form of payment on the chat app and beyond. The Telegram Open Network (TON) will consist of new third generation blockchain technology, giving the network capabilities that are head and shoulders above other cryptocurrencies.
The launch is expected to occur after a humongous initial coin offering, with private pre-sales hovering around several hundreds of millions. The ICO may emerge as the largest to date, being that the digital currency will come from an already established startup as Telegram is. The addition of a native cryptocurrency will provide Telegram’s payment system significant independence from governments and/or banks. Being able to distance itself from government entities is ideal for CEO Pavel Durov as investors took over his last company.
Telegram expects to raise over $500 million in the pre-ICO sale and a total token value in the range of $3 billion to $5 billion. Pre-sale investors may be required to place a minimum buy in of $20 million. The ICO will require real fiat currency like U.S. dollars for buy in not other cryptocurrencies.
Durov’s goal is to launch an entirely new blockchain and leverage Telegram’s current 180 million users to quickly get the company’s native currency into mainstream adoption. Using Telegram’s existing scale is a powerful tool, but can come back to bite if users themselves don’t choose to adopt the new currency. In order to protect the new cryptocurrency from speculative trading, Telegram will retain at least 52% of the supply of the newly established native cryptocurrency. The currency will be listed on external exchanges and used inside of the app.