Telegram’s eagerly awaited blockchain, Telegram Open Network (TON), is anticpated to be launched on October 31. However, the yet-to-be issued tokens are actually trading during an unauthorized secondary market.

Purchase Agreement Would not Allow For Resale

Investors happen to be seeing returns as high as 400% on Telegram tokens, identified as grams; however, secondary buyers risk their investment being worthless, to provide a clause while in the initial offering of grams prevents their resale the slightest bit before the launch of TON. The provider is also running over a deadline, of course, if TON doesn’t launch by October 31, after that the company could be forced to refund $1.7 billion USD raised within the offering in February and March of 2019 .

The purchase agreement states that “buyers of grams might not offer, pledge, sell, swap, encumber or recycle their tokens, directly and indirectly,”?nor?may investors sell “any securities convertible into or exercisable or exchangeable for the investment contract” between an investor and Telegram. Despite these restrictions, another market for grams sprouted before the ICO had even ended.

The Talk with the Industry

Grams initially sold for $0.37 USD in the first offering and $1.33 USD through the second. In your secondary market, grams were reselling for $2, which is certainly an increase of 440% from your first ICO. This highlights the large potential and heavy interest in Telegram’s blockchain network, that has been the talk of the marketplace early in ’09. However, Telegram is yet to publicly acknowledge TON, and both offerings were extremely secretive and highly selective.?Telegram decided for further ICOs; however,?efforts were unexpectedly shelved last May.

Some Concerns

The scarcity of movement from Telegram has raised some concerns from market analysts, particularly?Francis Pouliot, who said, “Is definitely the real use-case of blockchain technology the elaboration of mechanisms to launder money via shady public financing schemes?”

Telegram is really a cloud-based instant messaging platform, nearly the same as WhatsApp but with self-proclaimed superior encryption capabilities, that has a user-base in excess of 200 million. The business enterprise was founded by?Russian entrepreneur Pavel Durov in 2019 and it’s yet to yield an income.