Breaking News: TON Is Over!
The creator of Telegram Pavel Durov announced the closure of his blockchain platform TON. The project and its cryptocurrency Gram (Bitcoin analog) invented funds for 2 billion dollars. Unfortunately, Durov has faced with the obstacles of American jurisprudence.
On May 12, Pavel Durov published his open letter about the closure of the TON. There he tried to explain the reasons for such a decision.
What was the meaning of TON, and who prevented Durov from implementing his plan? Let’s consider the topic.
How did it get started?
Back in 2018, when the press started talking about TON, it was conceived as the new project of Pavel and Nikolai Durov. TON was supposed to consist of several interrelated elements, namely:
- Cryptocurrency – Gram;
- Payment system – TON Blockchain;
- Built-in tools;
- Encrypted messaging;
- Virtual passport – TON External Secure ID;
- Decentralized storage for files and services – TON Storage;
- Private search engine for domain names – TON DNS (instead of the global Domain Name System).
TON was created within the framework of the principles of decentralization. First, they had been implemented in Bitcoin and Ethereum. But in the end, the platform had to surpass the pioneers in speed and scalability.
Problems with the SEC
In 2019, TON developers began open testing of the platform, after which they planned to launch the project. But the SEC (the US Securities and Exchange Commission) obtained a temporary injunction against the sale of Gram tokens in the United States. The court decision ordered Telegram to register its cryptocurrency as security or return the money to American investors in case of refusal.
The documents of the regulator have indicated that among $1.7 billion that was collected in 2018 for the launch of the blockchain platform. About $425 million was accounted for by American investors who bought at least 1 billion Gram tokens.
Based on this, the SEC stated that buyers during the initial coin offering paid $0.37 per token, and the second round – $1.33 per coin. But during the mass launch of the Gram sale, the coin was supposed to cost $3.65.
After that, the regulator concluded that Gram is a security, not a currency. For such activities, the company must disclose the work information and the participated investors.
The developers of the blockchain platform did not agree with this interpretation and filed a counterclaim to the SEC.
At the same time, Pavel Durov announced the postponement of the platform launching for five months. TON was supposed to start working on April 30, 2020. However, the court proceedings dragged on for a year.
In this regard, on April 30, the launch of TON did not take place. Durov promised to return 72 percent of the previously invested funds for investors who raised funds a total of $1.7 billion. Plus, he could not launch the platform outside the United States – then investors from the United States would be unwitting violators of the law.
Durov has noted that his team was very proud of the result, which allowed a free exchange of values and ideas, implemented not without the help of his previous creation Telegram.
He hopes that someone will be able to create a decentralized system that could include all the necessary tools for safe and full operation within the network soon.
However, at the moment, he sees no other option but to close the project.