The question between Telegram – the famous messaging platform with encoded data and the US Securities and Exchange Commission turns to be with different ”mood”. Telegram firmly rejected to open financial documentation concerning its ICO from two years ago, which the market regulator requested lately.
Telegram Aims To Be Private
The famous company always attracts attention to itself. This time it happened especially – after raising more a billion dollars in two token sellings in 2018 for the launching of its Telegram Open Network blockchain. The SEC had a quick reaction on it and temporarily ceased the token sale, noted that it was against existing rules.
Thereafter, the market regulators requested a court order to provide them total access to Telegram’s financial documents, which made the situation even more complicated. To the mind of SEC, Gram (Telegram’s future coin) is in the securities category, and the company did not register it as such.
Still, the company seems to feel doubts regarding the issue and doesn’t want to solve it by sharing its confidential information:
“Telegram’s administration is declining to reveal the notes about how they have expended the $1.7 billion they gained from investors during the last two years and to explain the details concerning the distribution of investors’ funds.”
SEC officials claimed that these records are necessary for “winning” in dispute. It will help to explain how Telegram has managed with the investing money when it comes down to launching its own blockchain.
Is Gram Another Scam?
Gram was expecting to be presented at the end of last year, but it was postponed. Certainly, this delay attracted the attention of the cryptocurrency analysts. They considered it, what if this is a planned attempt from the company to create a scam.
One of the most famous traders, Tone Vays, made a loud statement regarding this moment, raising his worries about the possible using of Gram:
“Are they creating money for the world? Or are they simply finding a way to monetize their company? If you’re monetizing your company, you’re supposed to do it through the equity space. You are supposed to give shares of your company. You’re not supposed to invest money.”
It is worth to note that it is not the first delayed project in crypto history. It is easy to blame Gram as a new scam project, but we should not forget it comes from a large and well-recommended company, which provides a certain level of trust. Still, Telegram is not doing itself any favors by refusing access to its financial documents, which turns into delaying the case resolution and, finally, to its coin launch.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.