From Telegram to Wall of Worry, Bitcoin Volumes to Crypto Lull: eToro Market Update
The only real way to describe it, a total buzzkill.
Just as Telegram was set to release their newly minted Gram tokens into the world, the SEC in the United States has halted them in their tracks.
The Durov brothers who founded Telegram and managed to raise $1.7 billion for this specific project were hoping to avoid complications with the US justice system and their strategy to do so did seem pretty sound until last Friday.
Telegram never held a public ICO and instead raised funds directly from 171 private investors, each of whom were verified as “professional clients,” meaning that they have sufficient wealth to avoid the usual level of protection provided by the SEC.
Nevertheless, the government claims that the distribution of those tokens itself should be considered as a public offering of securities, even though Gram tokens are clearly meant to be used as money and not as shares in the Telegram app.
Of course, I’m no legal expert but it seems I’m not the only one who is more than a bit confused when trying to determine exactly what precedent the United States is trying to set by allowing EOS to continue with an infinitesimal fine but trying to stop Gram entirely. ¯_(ツ)_/¯
eToro, Senior Market Analyst
Tomorrow there will be no daily market update as I’ll be attending the Hard Fork conference in Amsterdam and my schedule is pretty tight. Will have one for you on Thursday.