Friday, January 15, 2021
Home Lead Story Cryptocurrency-Focused Subsidiary Shut Down by Telegram

Cryptocurrency-Focused Subsidiary Shut Down by Telegram

Telegram shuts down cryptocurrency-focused project after a legal battle in the US

After a legal battle in the US, instant messaging app Telegram has finally decided to withdraw its cryptocurrency-focused subsidiary, Telegram Open Network (TON).

Making the announcement in his channel on Tuesday, Telegram Founder and CEO Pavel Durov said that “a US court stopped TON from happening”.

The TON project was similar to Facebook’s Libra project which is also facing scrutiny from regulators around the world.

“Telegram’s active involvement with TON is over,” he said, while cautioning people not to trust sites using his name or the Telegram brand or the “TON” abbreviation to promote their projects.

Telegram engineers had been working on the blockchain platform called TON and a cryptocurrency they were going to name Gram for the past two-and-a-half years.

But the project also faced scrutiny from the US Securities and Exchange Commission (SEC).

The SEC in an order last October asked Telegram to stop sales of its Gram cryptocurrency following the company’s failure to register an early sale of $1.7 billion in tokens prior to launching the network, The Verge reported on Tuesday.

bitcoin
Telegram has decided to withdraw its cryptocurrency-focused subsidiary. Pixabay

The Telegram Founder slammed the decision in his announcement to withdraw TON.

“Perhaps even more paradoxically, the US court declared that Grams couldn’t be distributed not only in the United States, but globally,” he said.

“Why? Because, it said, a US citizen might find some way of accessing the TON platform after it launched. So, to prevent this, Grams shouldn’t be allowed to be distributed anywhere in the world — even if every other country on the planet seemed to be perfectly fine with TON,” he said.

Durov urged others to keep fighting for decentralisation, balance and equality in the world.

Also Read: 2020 Sees a Steep Drop Of 8% in Global IT Spending Due to COVID-19: Gartner

“You are fighting the right battle. This battle may well be the most important battle of our generation. We hope that you succeed where we have failed,” he said. (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

Study: Lack Of Managers Leads To Business Failures In India

Most firms in India and other developing countries are family-owned and often shun outside managers and that is why even successful businesses fail to...

Clovia: The Ayurvedic Solutions For Personal Care

A new solution-based personal care range, 'Clovia Botaniqa', was launched, especially for mothers. The products are based on Ayurvedic formulation comprising of oils, body...

Bursting The Myth: Violent Video Games May Increase Violent Behavior

A plethora of theories has been proposed to support the stance that playing violent video games results in increased aggression and violence. However, researchers...

Home Remedies To Deal With Different Stomach Aches

Stomach ache or abdominal pain can be cramped, achy, dull, sharp, or intermittent. The common causes of stomach ache include constipation, diarrhea, acid reflux,...

Metformin: An Ease For Covid Patients With Diabetes

Use of the diabetes drug metformin -- before a diagnosis of Covid-19 -- is associated with a threefold decrease in mortality in Covid-19 patients...

83 Percent Of Single Indians Are Comfortable Meeting Up In-Person

Virtual dating is the new norm in India, but real-life connections will pick pace post-pandemic, reiterates Bumble's recent nationwide survey. After connecting with people...

Discrimination causes Anxiety and Mental Disorders, Says Study

Regardless of genetic risks, exposure to discrimination in life plays a significant role in developing anxiety and related disorders, suggests a new study. Published in...

As Cimate Change Impact Intensifies, Nations Must Urgently Step Up Actions or Face Costs: UNEP

As temperatures rise and climate change impacts intensify, nations must urgently step up action to adapt to the new climate reality or face serious...

Recent Comments