Following the decision to abandon its TON Blockchain project, Telegram has now offered investors a refund of 72% upon any immediate settlement.
The popular messaging platform, Telegram has offered to refund 72% of each investor’s original investment after wrapping up its high-profile TON Blockchain project. The news came forth recently when the company decided to put an end to the project amidst ongoing regulatory issues with the U.S. Securities and Exchange Commission (SEC).
Return of investment to TON Investors
According to available information, investors have been offered two options for reimbursement. The first option involves an immediate refund of 72% which is quite favorable compared to the 77% initially promised by Telegram when the legal issues began. Alternatively, the second option offers investors a 110% refund, but this would be available only after a year in April 2021.
The sudden change of events is highly attributed to the unfavorable ruling by a U.S. court in late March which categorically stated that Telegram can’t distribute its tokens not only in the U.S but globally. Consequently, this has led to the company abandoning the TON Blockchain project and subsequently offering returns on investments to its investors.
Telegram’s Legal Battle With SEC
The issues with the SEC began when Telegram held a private ICO (Initial Coin Offering) for its project in 2018 where it was successful in raising approximately $1.7 billion. The SEC, however, had concerns and claimed that the tokens were securities, and that Telegram had failed to register them. This culminated in a legal battle in which the SEC was granted an injunction by a U.S. court prohibiting Telegram from issuing its tokens.
In response to this, Telegram has continually argued that the tokens (termed as “grams”) are not securities. Despite its best efforts to appeal the injunction, the court still ruled against Telegram bringing the TON Blockchain project to a halt.
Investor’s Reaction and Telegram’s Future Plans
So far, reactions from TON investors seem to indicate that a majority prefer the immediate refund option. The circumstances surrounding the 110% refund are still unclear, causing many to take the safer route. To encourage investors to choose the 110% refund option, Telegram has promised to provide them with either grams or a different cryptocurrency if they change their decision after receiving the 72% refund.
Despite the challenges, Telegram still plans on continuing the fight in a top-level court. However, this could take a significant amount of time and resources, which has likely contributed to the decision to refund the investments.
In conclusion, the fate of the TON project remains uncertain. Even though Telegram had a clear vision to create a decentralised internet, the regulatory challenges proved insurmountable. Investors are now stuck between opting for an immediate refund of their initial investment or waiting for a possible increased payout in a year’s time. Only time will tell how this situation plays out.
