#308
A TON Of Question Marks

Published:

Oct 19, 2019


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Published:

Oct 19, 2019


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Lost in the frenzy of the 2017 / ‘18 ICO (initial coin offering) craze, messaging app Telegram quietly raised nearly $1.7b in a private token offering from 171 purchasers to support the production of its own blockchain network called TON.

Nearly two years later, investors are rightfully asking where in the world are their “Gram” tokens?

It seems Telegram investors may have to wait a whole lot longer – or that they may even be getting their money back. In an emergency move, the SEC issued a restraining order preventing the TON network’s launch, citing that the Gram tokens are in fact securities.

Digital currency supporters were eagerly anticipating the launches of both Facebook’s Libra and Telegram’s TON. With the former touching 2.5b users and the latter nearly 300m users, they could serve as gateway into the broader world of digital assets. But even Facebook’s stable coin is facing challenges to get to market - with increasing scrutiny from Congress, and Paypal, Visa, Ebay, and Stripe dropping out of the Libra Association.

To top off the darker side of the ICO craze of late 2017, the BBC have recently published a new investigative podcast on the story of Dr. Ruja Ignatova, who sold a compelling cryptocurrency vision (aka a Ponzi scheme) with OneCoin and then allegedly absconded with $5bn in late 2017. The story has hit the news again with the publication of the BBC’s investigative podcast “The Missing Cryptoqueen”.

The moral of the story remains that regulators are closely watching the evolution of the digital currency space. If you are not buttoned-up, expect the SEC to throw some cold water all over your plans...

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A TON Of Question Marks


The SEC sues Telegram, aims to stop distribution to US investors of Grams sold in $1.7B sale - Crypto-research firm, The Block, breaks down the drama behind the Telegram ICO that culminated in the SEC sueing to stop Telegram, Inc. and Ton Issuer, Inc from continuing an “ongoing illegal offering of digital-asset securities called Grams.” Read more

Terrifying tale of OneCoin’s “Cryptoqueen” is subject of BBC podcast - Cosmopolitan preview the new BBC investigative podcast on Dr. Ruja Ignatova, the self proclaimed Oxford educated "cryptoqueen," the woman alleged to be behind what could be the largest cryptocurrency scam of all time. Read more

Death threats for cryptocurrency 'scam' whistleblower - Jen McAdam, from Glasgow, has received death threats after speaking out about an international cryptocurrency "scam" called OneCoin that is said to have raised as much as £4bn around the world in investment before the founder, Dr. Ruja, disappeared. Read more

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American Express takes aim at rival Brex with new card offerings for startups - The cards will offer full corporate liability without requiring founders to provide a security deposit or personal guarantee. New technology allows AmEx to see a startup’s bank balance to let fledgling firms qualify for the cards. Read more

Fidelity rolls out cryptocurrency custody business - Fidelity is ramping up its cryptocurrency custody business, hoping to profit from the scarcity of big, regulated institutions in the chaotic world of digital assets, according to Abigail Johnson, the investment group’s CEO.  Read more

Wyre introduces new crypto ‘on-ramping’ technology - One of the biggest hurdles for onboarding new users into DeFi has been the onramping time for KYC (know-your-customer) - Wyre V2 is looking to solve this by abstracting it away from the user by leveraging information already provided in Apple Pay and Google Pay. Read more

Ripple CEO blasts Libra, boasts of warchest - Ripple CEO Brad Garlinghouse blasted Facebook’s proposed Libra digital currency this week and boasted of Ripple's cash warchest in the process. Read more

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Craft Ventures just closed its second fund with $500m - The San Francisco based fund led by David Sacks, former co-founder and COO of PayPal, has closed its second venture fund with $500m in capital commitments. Blockchain has been a major theme within Craft's investment strategy from the outset. Read more

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$35b face data lawsuit against Facebook will proceed - Facebook has been denied its request to halt a $35b class action lawsuit regarding alleged misuse of facial recognition data. The suit claims that Illinois citizens didn't consent to having their uploaded photos scanned with facial recognition software. Read more

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