Telegram strikes back at SEC as investors vote to launch TON in 2020

Latest

The recent SEC move on Telegram to stop the launch of TON blockchain took the crypto market by surprise as many voices uttered total disbelief to see the legal action taking place only weeks before TON’s scheduled launch for the end of October 2019.
But why has the US Security and Exchange Commission stopped TON’s launch?
To keep it short, we have to say that Telegram engaged in two private sales of Gram tokens back in 2018 with American investors purchasing the not-yet-released Gram token at a certain price and waiting for the actual release of Telegram’s TON before they can trade (sale) their Gram tokens.
And exactly at this point we seem to have a problem with the US SEC, the institution analyzing the private token sales and concluding that Telegram engaged in a sale of securities.
So, US SEC considers that American investors purchased Gram tokens with the purpose of selling them later at a higher price and obtaining profit from this enterprise and from Telegram’s efforts. And this is what buying securities is, according to SEC.
Further on, if we are talking about a securities sale, we are talking about SEC’s jurisdiction and its rules. According to SEC’s regulations, all companies looking to sell securities to the public need to respect their legal framework. For instance, if a company wants to sell securities to the public, it needs to go through an IPO (Initial Public Offering), an entire process of validation and checks that is intended to protect investors’ financial resources from scams and cons.
Back to TON’s launch, we have to say that Telegram has already established with investors that in case the network fails to launch at the end of October 2019, they could be reimbursed and have all money back.
So, how could have Telegram solved this unexpected obstacle but by bringing the entire story in front of its American investors?
And exactly this is what they did, only to find out that the majority of investors are still interested to remain aboard Telegram’s crypto ship and continue with the new release date of April 2020.

Leave a Reply

Your email address will not be published. Required fields are marked *