Expert sees difficulties for Telegram to get big investors at ICO

MOSCOW, Jan 9 (PRIME) -- An initial coin offering (ICO) of messenger Telegram could be a great success, but the company could hardly see big investments on the oversaturated ICO market and amid a lack of regulation, Arseny Shcheltsin, head of the Association of Blockchain Technology and Products’ Developers and Users to Promote Digital Economy (RACIB), said on Tuesday.

“The idea is extremely ambitious from the point of view of the primary concept, but we should wait for an official confirmation and a detailed description. Keeping in mind a colossal reputation of Russian developers and trust to the team and messenger Telegram from the mass audience, such an ICO could be a big success,” Shcheltsin said.

Mass media earlier reported quoting sources that Telegram intends to work out its own blockchain platform and a cryptocurrency by March. The platform will be named Telegram Open Network and the currency – Gram, while the launch will be financed via the ICO.

Telegram could raise up to U.S. $500 million in pre-sale with the potential total value of tokens seen from $3 billion to $5 billion.

Shcheltsin said that the ICO market is oversaturated. “Investors are exhausted, and major investors want more legal elaboration. An ICO looks now less attractive for investors than the top five cryptocurrencies. This is why it’s difficult to count on long-term big investors who could contribute large amounts to gather some $1 billion and more,” he said.

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