Telegram ICO Memorandum Released


Over the last couple of days, it seems like everyone is talking about the upcoming Telegram ICO. But what makes this ICO so special? Simply put, when you have somebody who created both the biggest social network and the biggest instant messaging service in Eastern Europe and parts of Asia independently, you know that whatever they have brewing next has a high probability of being spectacular. And, yeah, there’s the whole thing about Telegram’s plans to raise $3 billion with the ICO, which would make this the biggest ICO in the industry by far. In fact, Telegram is already more than halfway there. Since the first sale, on January 29, Telegram has raised $850 million. The first issuance attracted 81 investors. With that amount of money, you know that the investments were anything but modest. The Telegram ICO is aimed at raising sufficient funds to build the Telegram Open Network (TON), which will utilize its tokens (grams) for goods and services on its decentralized free market.

However, in an effort to stay transparent, as well as to moderate some of the excitement surrounding the Telegram ICO, the company sent a 9-page memorandum to prospective buyers, outlining potential potholes and things that could go wrong. The practice was borrowed from the traditional marketplace playbook – investors, especially in IPOs, are used to seeing these types of documents that warn them to exercise caution. It’s kind of like Terms and Conditions for people with a lot of money.

The things that could go wrong are methodically listed in the memorandum. On the one hand, there are things that are related only to the Telegram ICO, like the fact that Telegram reserves the right to use the funds without any restrictions. Telegram also cautions its investors that it may not be able to distribute funds to holders of grams in case the project fails. Additionally, Telegram warns that there’s a chance that integrating Telegram (the instant messaging service) with TON may not go through, as well as that there’s a chance that Telegram will not be able to hire and retain skilled developers and programmers it will need for this massive project. Some other potential problems outlined in the memorandum have more to do with the challenges that cryptocurrencies and the cryptocurrency market is facing in general. There’s the problem of uncertain regulation, for example, and the fact that governments and lawmakers may choose to partially or completely shut the project down, even if only in certain countries. Legal factors are still very unpredictable, as well as the fact that blockchain technologies and cryptocurrencies as such may run out of steam and fail to retain public interest.