If the ambitious Telegram project fails, investors can not now say that they were not warned.
Along with the white paper and technical documentation, potential investors, perhaps one of the largest in the history of ICO, received a nine-page memorandum, which outlines the risks of buying tokens. For investors in traditional markets, this description of the dangers is a familiar sight – the documents list almost all conceivable things that can go wrong.
But the document Telegram, a copy of which was received by CoinDesk, is amazing, because the company does not offer shares. Instead, tokens will be used for payments between users and for accessing various services in the proposed open Telegram network after it is created.
The document could have been written with an abundance of caution, given the size of the initial proposal of the Telegram coin (ICO) – potentially 2,5 billion dollars.
In this way, CoinDesk outlined some of the most significant dangers listed in the document, which has the legal title "Certain risks associated with the purchase, sale and use of grams."
1. "Uncertain regulation"
Anyone who has followed the ICO knows that there are many question marks about what regulators can do. As noted in the document: "It is difficult to predict how and whether government agencies will regulate such technologies."
The government may impose liquidity requirements on Telegram or find that grams are regulated capital requiring registration, warns the document. If regulation in one of the countries becomes too onerous, Telegram can leave the country or even close the project, says the document.
On the other hand, Victor Mangazeev, chief executive officer of the PlayStation MyPFS sports platform, says that Telegram can have regulatory boundaries over competing messaging platforms, which makes it uniquely suited for fundraising.
There are several messaging applications that are larger than Telegram, but the leaders, Facebook Messenger and WhatsApp, are in the US who did not dare to use crypto currency. WeChat is another dominant platform, but her home, China, has recently become hostile to crypto-currencies.
Of the popular instant messengers outside these countries, "Telegram is the most technologically promising of them," Mangazeyev said.
(The location of Telegram headquarters is difficult to control, and the filing with the SEC – under the name "Ton the Issuer" – indicates the Virgin Islands.
2. "Legal and regulatory factors"
"TON Blockchain will work in a new and evolving legal and regulatory environment. There is no established law or judicial decisions concerning Blockchain and intellectual contracts, "the document says.
It further describes that licenses may be required, including some governments may devise rules after the sale of the tokens, but before Blockchain TON begins to live.
3. "Government and private actions"
Perhaps most of the users are embarrassed by a project like Telegram, US regulators are more likely to regulate it through coercive action at an early stage, so development takes less time than promulgating new rules.
Joe DiPasscuey of Bitbull Capital, a crypto-cash fund, told CoinDesk that he did not invest in grams, and is concerned that he will appear on the SEC radar.
"I expect that the SEC will pay close attention to TON, given that it will be the largest ICO, and the members of this ICO should be aware of this," he wrote in an e-mail.
For this sale, the company uses a simple agreement with the marking (SAFT). SAFT was conceived as a way to make ICO without violating US securities laws. But if the SEC decides that it does not like SAFT, this could be a problem for the largest ICO.
4. "Development and launch of TON"
The document says: "Telegram can not but pay for the services of developers with the technical skills and experience necessary for the successful development of TON Blockchain and the success in the successful launch."
Fortunately for investors, Telegram reserves a reserve for investors. Nevertheless, the company also reserves the right to spend money on all sorts of things.
5. "Risks inherent in Blockchain"
The document defines the risks inherent in the open Blockchain. These include the possibility of errors in the code.
Quantum computers can disrupt all encryption. Later, serious changes may be necessary, as a result of which the system may break down.
6. "Integration of TON and Telegram"
The popularity of this proposal, of course, depends on the large and active user base of Telegram. If for some reason the team can not integrate Blockchain TON with the mobile messenger, the document says, "the adoption of grams as a form of currency in the existing Telegram Messenger ecosystem may be more limited than expected."
At the very least, it's easy to see that many people do not use tokens that do not have utility. But this risk seems to be one of the most incredible, given the number of applications that are integrated with the messenger.
7. "Issuer and use of funds"
Telegram has no limits on how it uses the funds, so even if it can not build a TON, and it will need to terminate the contract with the buyers of the tokens, it may not have the money to return them back to the holders of grams.
This lack of restrictions allows Telegram to use the tools collected to support the messaging application, even if it never launches Blockchain, said Anton Rosenberg, the former chief technical officer of VKontakte, the Russian equivalent of Facebook, which Durov founded before Telegram began.
"They can spend all the money to buy servers for several years, for example," Rosenberg said.
8. "Blockchain and crypto currency will never catch"
Here are several document headers. Do not call them FUD; it is true that any of the foregoing may occur.
It is noteworthy that the risk document Telegram does not list one of the most significant threats, it is Google and Apple that remove the application from their stores.
Gurinovich described this, writing:
"Perhaps the worst case scenario is if the Telegram application is removed from the Apple Store and Google Play, just because these companies do not approve of when they do not participate in financial transactions … there is no court in the world that can help bring the audience back."
Nevertheless, Mike Burov, CEO of Cindicator, a decentralized platform for market analysts, told CoinDesk that people are investing in Telegram because they believe that it will raise the entire industry.
"This will be an absolute breakthrough for the market, which will attract a lot of attention to it. So this is their way of investing in the idea of "trust in crypto-currencies, trust in decentralization." This is their investment in the ecosystem. "
Author: Yevgeny Yakubenko, Analyst Freedman Club Crypto News
Image from Fotolia
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