The lead analyst for The Block, Larry Chermak, on several tweets expressed skepticism about the Telegram tokenale previously announced on the basis of the Liquid stock exchange.
“After the recent news that Liquid will hold presley tokens, I decided to spend some time studying Telegram and TON, which are expected to be launched on October 31. Summary: I would think twice before making an investment decision. ”
According to Chermak, Telegram with tens of millions of users does not have a business model. At the same time, before attracting funds through the sale of tokens, the messenger was financed exclusively from Pavel Durov’s funds.
Chermak also draws attention to the fact that the information about the launch of Telegram’s own blockchain appeared in the second half of 2017, at the height of HYIP on the ICO market.
“At the end of 2017, Telegram announced that it plans to“ revolutionize the blockchain technology ”by launching TON in 2018, which will be“ fast, scalable and easy to use ”
The analyst draws attention to the significant legal risks emanating from the influential American regulator:
“Doesn’t this remind you of anything?” But it should! Kik is currently suing the SEC, in part because it sold tokens to American investors, fearing that the project will run out of funds during 2017. “
Telegram sold simple agreements for future tokens (SAFT) to accredited investors in two rounds of $ 850 million each, collecting $ 1.7 billion from 200 venture investors, including Benchmark, Sequoia Capital, Kleiner Perkin.
“Now remember: Telegram has sold the rights to future tokens, not shares. For comparison, Lyft raised in March about the same amount ($ 2.3 billion) through an initial public offering. Its shares are currently trading at 33% below the IPO price. ”
In addition, the analyst noted that a significant portion of venture capitalists expected Telegram to hold ICO in March 2018 with a goal of $ 1.15 billion. However, the company later abandoned this venture due to legal uncertainty, and also because attract significant funds from accredited investors.
Telegram planned to spend $ 400 million to develop TON. Also, representatives of the popular messenger said they would return the money to investors if TON did not start in October 2019.
“However, there are no guarantees that enough money is left to recover the funds”
It also seemed strange to Chermak that the launch of the network was planned “almost on the last day”. He is confident that this is intended to avoid the need to return investors’ funds in the event of the launch of the Telegram Open Network.
The analyst once again stressed that the pre-sale tokens on the small [Liquid] exchange before the launch of TON “sounds absolutely crazy.”