Blockchain platform Telegram Open Network (TON) should go online by Oct 31, 2019. If not, all investors will get their money back.
No money, no honey — that’s the basic idea behind the unpublished version of a purchase agreement between Telegram’s creator Pavel Durov and investors of the second round. The document leaked to “Telegram News,” a Telegram community focused on the announcements about the platform.
The document contains a long list of countries that cannot take part in the token sale. Apart from apparent suspects from the US sanction list, like Cuba, Iran, North Korea, Syria and Chimera, Telegram’s token won’t be available for the citizens and legal entities of Japan. Entities incorporated under the law of the New York state are also explicitly excluded from the list of potential investors.
Also, GRAM won’t be available for separate persons specified in sanction lists of the Office of Foreign Assets Control in the US, the UN Security Council, and the European Union. The company introduced this to ensure compliance with the requirements of the US Securities and Exchange Commission (SEC) and to ensure transparency of the fundraising procedures.
While Japanese citizens could not participate in the second round of Telegram’s initial coin offering (ICO), the country is considered to be one of the priority destinations for TON deployment. The vast popularity of digital money and the loyal stance of Japanese regulators might boost demand for GRAM in this region.
Second Round Details
The second round of TON’s ICO finished in March 2018 — but the details of the token sale have become public only now, nearly a year later.
Investors of the second private stage of the crowd sale bought GRAM for $1.33. According to the white paper of the project, GRAM’s price is calculated by a formula where the cost of each consecutive token increases by 0.0000000001 percent, taking into account that the total input of coins In circulation should not exceed five billion units.
Notably, investors could pay for the tokens only in the US dollars and euros, which is indicative to the desire of TON’s team to target Europe and the United States as the central regions for its platform’s deployment.
Money Back (With a Twist)
The most interesting provision of the Agreement comes under the Termination clause, which states that the Purchase Agreement will be terminated automatically on Oct 31, 2019, if the Network launch has not occurred as of that deadline. In this case, the company will have to pay the investors a termination amount immediately after the deadline.
Investors will get back the amount they contributed minus the pro rata share of the expenditures made by the company in accordance with their “Use of Funds” plan described in Telegram Stage A Primer section. These deductible expenditures may include, without limitations, the cost of integrating TON Wallets into Telegram Messenger.
Earlier, BeInCrypto reported that Telegram Open Network (TON) was nearing the final stage of development. The team plans to launch the network in a test mode at the end of March 2019. If the trial period goes smoothly, chances are that the project will meet the timeline.
Do you think TON’s team will be able to launch the platform in time? Do you believe the platform will be a success? Let us know what you think in the comments below!
Images courtesy of Shutterstock.