- The company may postpone the network launch doe to Sec’s recent measures.
- Investors received the letter with the outline of possible outcomes.
The launch of Telegram Open Network (TON) may be delayed due to the recent actions of thee Securities and Exchange Commission (SEC). On Friday, October 11, the US regulator file da complaint to the court and obtain a restriction order to prevent the company from distributing GRAM tokens on the territory of the USA.
Telegram disagrees with the decision of the regulator; however, the company sent letters to investors explaining the steps it was going to take to remove the restriction, according to Bloomberg’s report. A delayed network launch is one of the options under consideration.
“We were surprised and disappointed that the SEC chose to file the lawsuit under these circumstances,” the company wrote in the letter.It is worth noting, that in accordance with the investor agreement the network should be launched until October 31, otherwise the company will have to return the funds to investors.
Also, TON Board, a private Telegram-channel for the investors deleted all the previous messages and promised to get back online once the situation clarified.
Due to the increased level of regulatory uncertainty, we take a break to analyze new information and adapt our policies.
«TON Board will be with you again once we have more clarity on the legal status of the TON and Gram as well as the permitted type of analysis that may be published on them. We are looking forward to sharing more information with you as soon as it’s possible,» the message reads.
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Stellar tokens worth of $3.6 million transferred to Kraken. XLM drops below DMA50
- Stellar has lost over 6% in a single day due to a massive sell-off.
- At the time of writing, XLM/USD is changing hands at $0.0651.
About 50 million Stellar coins were transferred to the US-based cryptocurrency exchange Kraken. This movement might have triggered the price collapse.
The Stellar Development Foundation (SDF) transferred 50 million XLM tokens to the Kraken exchange, according to Whale Alert, a Twitter bot. The fact that the Fund may be selling its coins might have caused the Stellar price collapse. The coin lost 5% in a matter of hours on Monday. At the time of writing, XLM/USD is changing hands at $0,0650, the capitalization of the asset has dropped to $1.3 billion.
Also, the company ended its $120 million airdrop, which might have also increased the bearish pressure on Stellar. The airdrop participants received 500 coins (about $35 at the current exchange rate) to their wallets. The airdrop participants often choose to sell the coins and thus influence the price of the asset.
In early November, the Stellar Development Foundation burned 55 billion XLM tokens or more than half of the entire issue. The burned tokens worth of $4 billion Caused a sharp price increase. The coin jumped by 16% in a single day.
XLM/USD, the technical picture
On the daily charts, XLM/USD moved below SMA50 (Simple Moving Average) and SMA100 (currently at $0.0660) We will need to see a sustainable move above this handle to mitigate the initial berish pressure and allow for an extended upside. The support is created by the lower line of the daily Bollinger Band at $0.0636.
XLM/USD, the daily chart
Token Investors May Sue After Former Korean Social Media Giant Shuts Down
Investors in the “clink” token launched by Korean social media firm Cyworld earlier this year are up in arms over the firm’s abrupt closure.
As reported in The Korea Times, Cyworld shut down on Oct. 1 without warning, leaving clink investors uncertain if their holdings continue to have any value. Adding to the mess, two Korean exchanges that actually list the little known token, CoinZest and BitSonic, are considering removing support.
Launched in 1999 and popular in the mid-2000s with some 32 million users, Cyworld’s user base fell during the subsequent rise of Facebook and Twitter.
To try and turn its fortunes around, Cyworld conducted an initial exchange offering (IEO) on CoinZest in January, raising around $400,000. The company had been bleeding employees and funds for some time, having ceased its global service in 2014 to focus solely on South Korea.
Since the site’s closure, Cyworld CEO Jeon Jae-wan and other company executives have not been available for comment. Some clink holders are considering filing a lawsuit against the firm and its CEO, the Times says.
As of press time, each clink token was worth $0.00033266 and had a little over $10 in 24-hour trading volume according to data provider CoinGecko. Clink holders are reportedly expected to lose over 1 billion won ($842,600) if the company doesn’t turn the situation around.
CoinGecko reports the total number of clink in circulation as 10 billion coins.
Telegram to Launch Gram Token in October
Telegram completed a $1 billion ICO in the crypto sector and now it is ready to launch its Gram tokens by October.
The popular messaging app started its ICO last year and successfully raised $1.7 billion in the span of a few months. The success of their ICO has been compared with that of companies such as Facebook and Uber, which needed seven and five years respectively to raise 1 billion.
At the time, the Gram token was not released as there was no working prototype. But this did not affect the decision of venture capitalist to get involved with the project.
Telegram has recently announced that in two months the first issuing stage of Gram tokens will happen as initially scheduled, according to three investors that have talked to Telegram recently.
Telegram also intends on making Gram digital wallets accessible for its tokens to all of its 300 million users from all over the world when the coin will be launched. Gram tokens were created to simplify cross-border payments, and to make transferring funds more facile.
The 31st of October is the date set for the first release of a series of Gram tokens. According to a 132-page document sent to its investors, Telegram explained how its users would be able to easily send and receive Gram tokens via its proprietary blockchain, Telegram Open Network (TON).
Multi-platform crypto wallet Button Wallet has already announced that it will support trading for the token powered by TON.
“Crypto’s biggest obstacle is mass adoption and what we’ve created will help people be comfortable with trading cryptocurrency without using real money. With all the fanfare surrounding Facebook’s Libra digital currency, there hasn’t been a way to explore digital assets without risk, until now with Button Wallet and the Telegram Open Network.” –said Alex Safonov, the Button Wallet co-founder.
Gram is not a stable coin and will not have any fiat backing. Instead, it will be like Bitcoin or Ethereum, with its value being determined by other market factors.