Telegram is planning joining other startups in moving to blockchain technology, which guarantees better security and transparency. The sncrypted messaging startup is expected to launch a chat cryptocurrency that will power payments on its application.
Multiple sources have stated that the company will have a new blockchain platform known as Telegram Open Network (TON), which will have superior capabilities. The launch of Telegram’s cryptocurrency will be funded with a massive ICO, but will only involve private pre-sales ranging into the hundreds of millions. This will make it one of the biggest ICOs ever, especially considering the fact that it comes from a fairly new startup.
The Move Will Likely Give Telegram Great Independence
Considering the blockchain is fully decentralized, the move by Telegram to launch a platform on the network means that the company will enjoy massive independence from banks or any government. The CEO and Co-founder Pavel Durov had previously hinted that they were ready to take the chat application to the blockchain network, especially considering he had suffered earlier in the hands of investors, who took over his previous company.
By integrating crypto-powered payments, Telegram users can bypass remittance fees that are charged when one sends money across international borders. Moving large sums of money will now be possible thanks to the encryption that the platform offers.
Only Large Amounts of Cryptocurrency to be Sold
Reports indicate that Telegram is looking to raise around $500 million in its pre-ICO sale, with a token value ranging from $3 billion to around $5 billion. These figures could, however, change before its ICO kicks off in March.
Investors interested in purchasing the cryptocurrency have to raise a minimum of $20 million, according to sources. The ICO uses real fiat currency, not Ethereum or Bitcoin, as has been the case with other ICOs. There are a number of top institutions that have expressed their interest, although Durov is wary of accepting any cash.
The Telegram Open Network (TON)
Because of Telegram’s existing number of users (around 180 million), there’s a good chance that the TON will be a success. Its cryptocurrency, which is rumored to be called “Gram”, could potentially gain mainstream adoption immediately because of the fact that it’s tied to the chat app.
The platform combines both decentralized and centralized features to allow for the utmost scaling. And because of the benefits that come with the blockchain technology, the app would be insulated against attacks as well as occasional accusations by governments such as Iran, where the company accounts for a cool 40% of the country’s Internet traffic.
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What do you think about Telegram moving to the blockchain network? Do you think its native cryptocurrency will get immediate mainstream attention? Is it a wise move? Let us know your thoughts.