The London-based company – Telegram, has halted its plans to broaden its ICO. This news is significant, considering this was the largest crypto fundraising effort in the world. What has caused the Telegram ICO plans to stall?
Telegram ICO Plans
News broke this week that Telegram has shut down its public ICO. This may come as a shock to a few, considering the significance of the fundraising effort, as well as the fact that Telegram had been pushing to make a mainstream crypto for some time now. Initially, Telegram was hoping to create a digital currency for its 200 million users.
As of right now, it is unclear why the ICO has been put on hold. That said, it could be because of the tight regulations in the crypto space. Ever since Telegram announced its ICO plans, numerous regulations have been proposed, ultimately shifting the atmosphere of the crypto sector. Further, the Wall Street Journal reported that because of the way the crypto space is right now, Telegram would have been subject to scrutiny from the likes of the SEC.
With that being said, there is another explanation for Telegram halting its ICO. For instance, it is possible the London-based company has already raised enough money in private sales. If they did, they would no longer have a need for an ICO. This year, Telegram brought in $1.7B in total, from less than 200 private investors. If Telegram has enough money, that’s great. Reportedly, the money is going towards the company’s Open Network project. This project is intended to fund its messaging platform while creating new features.
What’s interesting, even though there is no correlation, is that the news of the halted ICO has come during the same week that Iran banned the use of Telegram. The messaging app was banned ahead of the protests that are expected to occur on the 12th of May.
Now that you’re aware of the news, are you upset? Happy? Did you see the Telegram ICO plans halting? Let me know.
Featured Image: twitter