Telegram, the Russian developed messaging app, is launching an ICO, but not meant for everyone. The Telegram Open Network (TON) coin is only for those who can put in $500,000 or over into the cryptocurrency project that is expected to raise about $2 billion.
The Russian cryptocurrency market is already bubbling with those who have the wherewithal to invest falling over each other to join the Telegram ICO. This sale is a private one, only targeting professional investors in the US. ‘Outsiders’ have a minimum limit of $20 million while ‘insiders’ have a minimum limit of $500,000.
This closed nature works like a security and not like the usual utility tokens offered by startups. These security tokens are rare and are different from the utility tokens offered by startups which act as coupons that offer discounts on services offered by the startups and their coins.
As for the exchange, TON may not see one anytime soon as retail investors who have few dollars to invest will not get a chance to so. Besides, the investors’ money will be locked for a definite period of two years.
The first round sales are based on the Simple Agreement for Future Tokens scheme. The buyers are hoping that the second round will see a break in the current protocol. But Anti Danilevski, CEO of KickICO in Moscow, doesn’t think this will be the case. He insists that still, one must be an accredited investor in order to participate.
Telegram is the most preferred messaging app by the cryptocurrency and Bitcoin crowds. This brand visibility will make Telegram one of the most traded coins if the retail coin gamblers found their way into it. The buyers are the rich investors from Asia, US, and Europe who are betting on the Telegram’s 200 million users’ ability to start using Telegram Open Network wallets, buy TON coins and spend them on goods and services on the app.
Telegram is expecting to raise $4 billion to $5 billion that would make it the biggest ICOs ever since the crypto craze set in late last year. These funds raised are meant to fund Telegram’s new blockchain platform.