As per a document filed with the U.S. Securities and Exchange Commission (SEC) by Telegram CEO, Pavel Durov, a Russian entrepreneur, this week Telegram was able to raise a whopping $850 million through their initial coin offerings (ICO).
The initial expectation was to raise $600 million but they managed to garner massive interest from venture capital firms. It is the highest amount ever raised in a single round of financing.Previously highest numbers were achieved by Filecoin who raised $257 million and Tezos that raised $232 million.
The money raised will go towards the development of the TON blockchain. Telegram is supposed to go public in March and as Bloomberg previously forecasted, the public sale will be for ~$1.15 billion, given the interest it has garnered over time.
Vasile Gheorghe, a Bitcoin miner from Bucharest, says,
“It was more of an IPO with VC whales given the preference to invest over regular people and the popularity it gained makes you believe Telegram is heading the Google way”
What is Telegram?
Telegram is an instant cloud-based messaging service. According to Telegram CEO Pavel Durov,
“The annual growth rate of Telegram is 50%”
Telegram provides end to end secure messaging application. The growth rate of Telegram is justified because intensive surveillance is used by many governments on its citizens driving many users towards this platform. Telegram reached 180 million active subscribers in December 2017.
What is ICOs?
ICOs are a modern form of financing used by cryptocurrency startups. In this generally, some portion of tokens are allocated to investors in exchange for mutually agreed legal tender or other cryptocurrencies. Ethereum is the leading blockchain platform for ICOs with more than 80% market share.
Companies raised about $6 billion via ICOs in 2017 and 37% of that amount was made by only 20 ICOs. China is the only country that has not only banned all ICOs but also warned of severe punishment if the proceeds from previous ICOs were not returned to the investors. However, a week later a Chinese financial official stated on Chinese national television that the ban on ICOs is only temporary until ICO regulatory policies are in place.
AMBCrypto’s team reached out to generic small-time investors who have invested in various ICOs before and they felt the nature in which Telegram’s ICO pre-sale was carried favored the big-time market players with big money. With the pre-ICO stage gaining so much interest, the future rounds would have nothing left and would mean the initial sharks will eventually make a profit.
Raman Naidu, an entrepreneur and a cryptocurrency investor with a $2 million portfolio says,
“Telegram’s success shows the hunger in people to invest in something valuable. Current ICOs, in general, have an almost negligible contribution to the society. I was discouraged by Telegram’s approach of making the concept look more like an IPO with credited VCs taking part rather than an ICO ecosystem.”
Aengus Kilpatrick, a Market Analyst with Wells Fargo says,
“Personally, not really happy with the way it went. It sides with lions, goes against what cryptocurrencies cubs [ICOs] are famous for. Well, money is money, so you take it and be happy!”
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Facebook’s Libra hit by more accusations, Balaji Srinivasan on BTC investment and more
Crypto News – 24 June – Facebook’s Libra hit by more accusations, Balaji Srinivasan on BTC investment and more
— AMBCrypto (@CryptoAmb) June 24, 2019
Crypto News – 24 June
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