- The Grams ICO is perhaps the biggest ICO failure in history
In 2018, Telegram raised USD 1.7 billion for the Grams initial coin offering (ICO), making it the second-largest ICO in history, with only the USD 4 billion offering by EOS surpassing it. However, after years of battling with United States regulators, Telegram is tapping out and the Grams ICO is officially dead before it could even launch its cryptocurrency, making this perhaps the biggest failure of its kind in history.
The primary factor that put Telegram in hot water was that they accepted investments from United States investors, which was a violation of securities regulations. The Securities and Exchange Commission (SEC) vigorously hindered Telegram over and over, and in March the SEC obtained an injunction against the firm from the Federal District Court.
At first, Telegram filed an appeal against this injunction, but now has withdrawn the appeal, and this marks the official death of the Grams ICO. It remains to be seen if investors will receive a full refund for the USD 1.7 billion even though Grams never launched.
On a final note, Telegram’s blockchain, called the Telegram Open Network (TON), could theoretically launch still since its code is open source. However, the company is not legally allowed to be involved with any cryptocurrency that uses the TON code.
Image Courtesy: Pixabay