Telegram Open Network (TON) was a cryptocurrency project announced by TechCrunch in late 2017 and later confirmed by Telegram in early 2018.
It would have been a Proof of Stake cryptocurrency that targets 200 million Telegram chat application customers.
It claims to employ infinite side chains and sharding to accommodate millions of transactions per second, in contrast with 7 TPS for Bitcoin and 15 TPS for Ethereum. This, they argue, would allow Telegram Open Network to compete with VISA and MasterCard, something Telegram claims Bitcoin can’t currently do.
In May 2020, Telegram ended up cancelling the project for good.
The Telegram ICO sold over 2.9 billion tokens called Grams.
Each token was sold at approximately U$ 0.59 cents, raising ~ 1.7 billion U$ in initial investment.
Gram Vault will be the first custodian of Gram tokens after the ICO.
SEC Emergency Action
In September 2019, the chief market regulatory agency of the USA, Securities and Exchange Commission, filed an emergency action to halt the Telegram Open Network ICO.
Some of the SEC’s concerns include what was done with the U$ 1.7 billion raised for the ICO.
Until the SEC legal process is concluded the ICO cannot move forward.
Since Telegram’s crowdfunding involved investors in several European countries, as well as the USA, the ICO became subject to international treaties, therefore the SEC must authorize it to move forward.