Telegram Launches Second Secret pre-ICO Sale

Telegram Launches Second Secret pre-ICO Sale

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According to The Verge, Pavel Durov trying to raise more money from accredited investors before the coin gets offered to the public in a secretive second presale. This week, investors got an email explaining that Telegram is doing another private presale. One of Verge's sources says the exact amount to be raised is not still determined while the others state it will be around the same size as the first round, which would bring the total raised to over $1.6 billion before the ICO even opens up to the general public. Telegram’s offering was already the largest ICO ever, dwarfing the previous record of $232 million. Telegram declined to comment on the second presale. The change in Telegram’s plans comes as the company is under scrutiny for its proposed Telegram Open Network or TON, which promises to be an Ethereum-like ecosystem with apps, services, and a store for digital and physical goods. Critics say the proposal is short on technical details, and that Telegram’s high valuation is being driven by hype and speculation rather than the value of the technology. Even if the Telegram team had included more technical details, not everyone is convinced it makes sense conceptually. Telegram is effectively proposing to act as a benevolent dictator — it will control a majority of its currency, at least to start — helping a system that will eventually be decentralized get off the ground. Omelyan Honchar, a Financial Analyst from Kiev spoke to AMBCrypto and says,
“This is all just hype and speculation. If people think Bitcoin is hype then Telegram’s TON is super-duper-over hyped. No detailed explanation on the usage of funds and why do you require so much anyway?”
Kaspar Järvekülg, a security advisor at Beel & Clark has another opinion:
“There is a pattern with all the ICOs, the whitepaper is becoming more and more like a sales pitch rather than the technical documentation of what will be achieved. Telegram’s TON is definitely looking like it will raise a lot more money especially with the interest it gathered over the past few weeks.”
When the crowdsale opens with SEC breathing down on ICO companies with regulations, it is possible that Telegram would not venture in the US markets and would keep the presale open for accredited investors only – companies or individuals with a net worth of more than a million dollars.

Telegram’s public ICO was expected to take place in March. It’s unclear if the new second private offering affects the timeline for the public sale or how many coins will be available to the public at launch.

Telegram’s ICO is one of the most anticipated the cryptocurrencies world has seen, and it’s the first to attract more traditional Silicon Valley venture capital firms. But observers are skeptical of its value offering.

Charles Noyes, a fund manager at the firm noted that it has instead stepped back from taking up the offer. He suggested that the funds could possibly be used to fund day-to-day operations at the company, instead of the project:
“My primary concern with it is that, in the first offering institutions are seriously looking at, they’re promising something that will somehow be radically better than everything else out there, with no real explanation of how that will happen or outside scrutiny of those claims,”
Ben Cronjie, a Financial Advisor at a VC firm in Capetown says,
“Firms like us have been approached by multiple agents from the same company with different offers during the first presale, I doubt anything is going to be different now. We know of many firms that would be interested to invest just because of the media interests.”
With social media companies continually coming under fire, and regulators targeting ICOs, it remains to be seen just how successful this project will be in the future - that is if it gets off the ground.  

And what is your opinion on the reasons of the second pre-sale? Share in the comments section below.


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