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Telegram postpones Gram token launch to April 2021: Prepares to refund investors

  • Telegram gives investors in the US only one option; to accept the 72% repayment on their investment.
  • Telegram hopes to clear itself with the SEC in less than a year to enable a launch in April 2021.

Telegram, a leading social media company has been obliged to refund investors after the launch of its Gram token failed to take off due to the ongoing case in a United States law court. According to the contract signed by investors during the presale in 2018, the company is to refund 72% of the investment if the launch fails to take off by April 30, 2020. The launch of the token has now been delayed twice.

The company has reconsidered its initial plan of paying the investors in gram tokens or any other cryptocurrencies due to uncertainties in regard to US regulations. Investors have also been given the option of accepting a later payment of 110% of their investment if they wait for the payout after the launch. According to a letter by Telegram to its investors:

Unfortunately, based on more recent discussions with relevant authorities and our counsel, we have made the difficult decision not to pursue an option involving grams or another cryptocurrency due to its uncertain reception from the relevant regulators.

Although the loan option is still on the table, repayment will not be in the form of cryptocurrency. Moreover, the investors in the United States have been given only one option: To accept the 72% payment as Telegram seeks to be in the good graces of the Securities and Exchange Commission (SEC). Investors are required to respond immediately with details of their location. The letter continued:

This offer is only being made available to offerees outside the United States who are not U.S. persons within the meaning of Regulation S under the U.S. Securities Act of 1933.

Telegram raised $1.7 billion in 20218 to support the launch of the TON blockchain. The blockchain network was initially scheduled to go live on October 2019 but was postponed to April 30, 2020. In light of the ongoing court battle with the SEC for possible violations of the Securities Law, Telegram now hopes to launch in April 2020.

 

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