Telegram, a popular instant messaging service, is not going to conduct the second public part of its ICO, after securing enough funds during the private sale. According to The Wall Street Journal, the decision to cancel the public sale was made after the company raised $1.7 billion by selling their tokens to a chosen group of private investors.
The closed token sale was attended by fewer that than 200 investors, who had to have a net worth of $1 million to participate. The private sale consisted of two stages, each bringing the developers in $850 million. The innovative concept, described as “a Visa/Mastercard alternative for a new decentralized economy” managed to get a lot of people interested. According to developers, their payment platform is designed for quick mainstream adoption.
The secured funds are going to be spent on Telegram Open Network project, the main aim of which is to further develop the messenger, already chosen by 200 million users.
Although Telegram Group Inc. did not provide any comments concerning the cancellation of the public sale, some experts speculate that the company simply raised enough money. Other sources state that Telegram developers are waiting until the U.S. Securities and Exchange Commission releases new ICO regulations.