For several months the cryptocurrency community has been actively discussing the possible emergence of the TON project and the associated ICO Telegram, for the right to participate in which investors from all over the world are fighting. What caused such a stir and does a regular investor have the slightest chance to join the new brainchild of Pavel Durov? Everything is very ambiguous, but we will try to figure it out!
What is a TON project?
Pavel Durov told reporters in the winter of 2017 from Bloomberg that he was working on a service that would generate revenue for the Telegram messenger. Now the service does not charge user fees, does not distribute advertising and, as many believe, brings more losses to its creators.
At about the same time, a post appeared on Facebook that the Telegram team was creating its own digital token, as well as a YouTube clip with a presentation of the planned cryptocurrency.
In addition, several Telegram channels began to massively send out the WhitePaper project, the authorship of which is attributed to Nikolai Durov (to Paul’s brother). By the way, the brothers themselves did not comment on the news. Nor did they confirm the authenticity of the distributed WhitePaper.
However, ICO Telegram has already started and information appeared in the network, indirectly confirming the involvement of the Durovs in fundraising (we will describe this further later). Therefore, we assume that WhitePaper is real, and we will understand what is written in it.
At the beginning of the document it is said that Telegram will create a cryptocurrency network Telegram Open Network (TON) with an internal token Gram. The following 130 pages contain technical information describing the benefits of the future network.
The main problem with cryptocurrencies operating on a regular blockchain is poor scalability under high loads. Because of this, network bandwidth decreases, transactions go slower, and the commission for their confirmation increases.
This problem will be solved due to the functioning of the so-called multi-blockchain in TON. This is not a single chain, as in conventional cryptocurrency networks, but an extensive system consisting of many individual chains (mini blockchains). Transactions will be divided between these chains and at each operation the system itself will choose the best way to conduct a specific transaction.
This will increase network bandwidth to several million transactions per second, and reduce the time to complete one transaction to fractions of a millisecond.
Forks in such a network are generally excluded. The system is constantly branching out and updating itself. Fork is not needed even if an error block is detected. The network will automatically rebuild, “pushing” the wrong block and on top of it will begin to “tune” new, correct blocks.
Opening miners and confirming transactions will not be miners with powerful equipment, but validators. It is planned that during the month 1000 validators will work in the network, but every 30 days their composition will change completely.
In order to become a validator for a month, you will need to install equipment (but not an ASIC miner or a mining farm, just a PC with a powerful processor), ensure uninterrupted internet connection, make a deposit to the system (its amount is still unknown) and get approval from the developers.
The basic TON functionality includes storing funds (both cryptocurrency and fiat), making payments, paying for goods and services, creating smart contracts and launching decentralized applications. At the same time, users will be able to send payments both within the system and beyond its limits. The developers plan to synchronize TON with the blockchains of the top cryptocurrencies.
If everything goes according to plan, TON will enable users from all over the world to conduct anonymous cryptocurrency operations and not be dependent on government bans. Some experts generally suggest that Durov decided to create a Gram in response to the fact that many countries have banned the use of cryptocurrency.
Telegram allows you to bypass blocking by IP address, so that the messenger can be used by residents of countries where social networks and similar resources are prohibited. TON will return the opportunity to work with cryptocurrency to residents of China, South Korea and other regions that feed the market, but were cut off from it because of government bans.
Such perspectives caused delight in the cryptocurrency community and an incredible excitement arose around the ICO Telegram. Its creators plan to raise an incredible amount of $ 5 billion! No one doubts that they will succeed.
How to buy ICO Telegram tokens: the procedure for
According to insiders, only people close to the project management could apply for the purchase of tokens. Moreover, the minimum threshold for joining the ICO was $ 20 million, and contributions were only accepted in Fiat.
In total, at the first stage, about 2 billion tokens were sold for the amount of $ 850 million (38 cents per token). Interestingly, the developers received hundreds of applications worth more than $ 3 billion, but refused to many applicants. Among the lucky ones were a little more than 80 investors.
The second stage of the presale fell on March. This time a little less than a billion tokens went to the market with a starting price of $ 1.3. For them, investors (only 90 people) again gave 850 million dollars.
Thus, in just two approaches, ICO collected $ 1.7 billion, becoming the absolute record for the entire history of the cryptocurrency market. The previous record set ICO Tezos, during which it was collected 230 million dollars.
It is expected that the presale will continue soon. However, to change tokens purchased during the ICO, for full-fledged Gram coins, developers plan at the end of the year.
For example, investors from Benchmark (formerly sponsored by Twitter and Uber), Sequoia Capital, Kleiner Perkins Caufield (invested in Google and Amazon) and others invested in the project. It is obvious that such people are invested only in projects that have high hopes.
Should I buy TON tokens?
So far, ordinary investors have no reason to think about participating in ICO Telegram. All what they have to do is to pool themselves for participation in a presale (but the amount still remains transcendental) or to hope for a public sale of tokens.
Although experts suggest that everyone will easily be able to buy coins after the launch of TON. Moreover, the developers have promised that at first the cost of Gram on the stock exchanges will correspond to the price of presale.