The Telegram ICO has been getting a lot of attention from investors in Silicon Valley. The company behind the Telegram messaging app announced in December that they planned to build a digital virtual marketplace based on blockchain technology. The announcement that the company plans to raise $1.2 billion from the project through an ICO has been one of the biggest ICO news in the past few weeks.
That some prominent investors in the fintech space have shown interest in investing in the ICO is an indication of the high regard the investing public has in the company. Telegram has more than 170 million subscribers and it is natural that the company has what it takes to build a virtual economy as they promised in the ICO whitepaper. Silicon Valley venture capitalist investors Kleiner Perkins Caufield & Byers, Benchmark and Sequoia Capital have each indicated interest to invest $20 million each in the ICO.
ICO is a digital currency-based fundraiser that gives startups opportunity to sell their token to investors, thereby generating funds for the startup project. Tokens mostly have utility within a specific ecosystem. With 170 million subscribers, there is no doubt that the potential of the Telegram token is promising, and the reason corporate investors are indicating interest in it.
Although companies such as Sequoia and Benchmark are yet to make official statements on their interest in the Telegram ICO, that big venture capitalist companies are developing the interest in funding ICOs highlights the fears of traditional asset management companies that have had misgivings on the possibility of dereliction by investors.
The Telegram ICO has continued to generate interest among all classes of investors that though some experts are saying that they may lack the capacity to pull through such an ambitious project, big corporate investors think otherwise. Those companies behind corporate giants such as Google and Amazon believe in Telegrams (TON) is indicative that the ICO is one to keep an eye on.
The encrypted messaging app was founded by Pavel Durov and has features that have made it attractive to users within the crypto community. In fact, there hardly is an ICO that hasn’t had a Telegram channel. The company wants to create a blockchain based version that would have its own internal cryptocurrency known as Gram, that would drive digital currency adoption.
The Telegram Open Network will be built on its own blockchain, unlike other ICOs that are mainly built on the Ethereum Network ERC-20 smart contract. TON offers a complete virtual economy to companies and with 170 million market population, it is expected that the February presale of $600 million will be sold out. The ICO comes up in March 2018.
The Telegram team is based in Dubai after Mr. Durov left Russia on what he said was a pressure by the government to have Telegram censor messages from the opposition. There have been indications that a company that doesn’t have a ready source of income may not be able to pull through a big project such as Telegram Open Network, but the team has said that the company has been sustained by massive donations. Mr. Durov is worth more than $300 million and seems ready to put his personal money into the TON project.