Well-liked messaging app Telegram has shut down its TON cryptocurrency undertaking. Telegram founder Pavel Durov explains {that a} US courtroom has stopped his TON undertaking and prevented the gram cryptocurrency from being distributed to traders, not simply within the US however globally.
Telegram Discontinues TON Blockchain and Cryptocurrency Undertaking
Telegram founder and CEO Pavel Durov introduced on Tuesday his choice concerning the Telegram Open Community (TON) and cryptocurrency undertaking after an extended battle with the U.S. Securities and Trade Fee (SEC). “Today is a sad day for us here at Telegram. We are announcing the discontinuation of our blockchain project … I am writing this post to officially announce that Telegram’s active involvement with TON is over,” the messaging app’s founder wrote, including:
Sadly, a US courtroom stopped TON from occurring … the US courtroom declared that grams [cryptocurrency] couldn’t be distributed not solely in the US, however globally.
In accordance with the choose, “a US citizen might find some way of accessing the TON platform after it launched. So, to prevent this, grams shouldn’t be allowed to be distributed anywhere in the world – even if every other country on the planet seemed to be perfectly fine with TON,” Durov conveyed.
Due to the U.S. courtroom’s discovering, “we have made the difficult decision not to proceed with TON,” Durov confirmed however famous that this choice may change sooner or later. “Sadly, the US judge is right about one thing … we are still dependent on the United States when it comes to finance and technology.”
TON Crypto Undertaking and Durov’s Warnings
Durov defined that over the previous two and a half years, his staff has been engaged on “a next-generation blockchain platform called TON and a cryptocurrency we were going to name gram,” elaborating:
TON was designed to share the rules of decentralization pioneered by Bitcoin and Ethereum, however to be vastly superior to them in velocity and scalability.
The TON crypto undertaking raised about $1.7 billion from traders in 2018 in an preliminary coin providing (ICO). Nonetheless, the SEC halted the sale in October 2019 claiming that the gram tokens had been unregistered securities. In March, a U.S. choose affirmed the SEC choice and dominated that the gram cryptocurrency couldn’t be distributed each within the U.S. and globally. Telegram then supplied to pay traders again in two methods however U.S. traders solely have the choice of taking 72% refunds.
The TON builders declare that their blockchain could be sooner and extra environment friendly than the Bitcoin and Ethereum blockchains. In accordance with Durov, “existing networks such as the Bitcoin and Ethereum blockchains do not have the capability to replace high-volume transaction mechanisms like credit cards and fiat currency,” a courtroom doc reads.
Durov warned that some websites may be utilizing his title, the Telegram model, the title TON or gram cryptocurrency to advertise their very own initiatives. “Don’t trust them with your money or data,” he emphasised, including that nobody from his staff is concerned in any of them. “While networks based on the technology we built for TON may appear, we won’t have any affiliation with them and are unlikely to ever support them in any way. So be careful, and don’t let anyone mislead you,” he cautioned. In conclusion, Durov wrote: “I want to conclude this post by wishing luck to all those striving for decentralization, balance and equality in the world … This battle may well be the most important battle of our generation. We hope that you succeed where we have failed.”
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