Telegram Raises $1.7 Billion for Biggest ICO in History
The messenger app shattered records.
It was reported Friday that encrypted messaging app Telegram shattered initial coin offering records by raising a total of $1.7 billion in two rounds of funding. The company’s ICO kicked off on February 16 when it raised $850 million during its first round, and it managed to match that same amount on March 29.
The company filed its funding documents with the Securities And Exchange Commission on Thursday. The paperwork was picked up by Cheddar reporter Alex Heath and the news was broken live on Cheddar’s Morning Bell.
“The total $1.7 billion in funding makes Telegram’s coin offering the largest in history,” says anchor Brad Smith. “The company plans to use the funds to create a decentralized network for its users to send payments, messages, and more.”
Unlike traditional initial public offerings, Telegram offered investors a discount on their newly coined cryptocurrency, Gram. The company will use the proceeds raised by selling off its digital currency to fund the development of the Telegram Open Network (TON). This blockchain venture will decentralize a wide array of digital communication, like file sharing and transactions.
Telegram might even go for another round of funding further down the line. A portion of the paperwork the company filed with the SEC stated it “may pursue one or more subsequent offerings.”
The app was temporarily removed from the Apple App Store when it was reported that content on the messenger violated Apple’s guidelines. It also currently runs the risk of being completely blocked in Russia after it failed to provide information to the Russian government for a terrorist investigation.