Telegram refunds funds to investors upon unsuccessful start of TON
Telegram announced that it will give a full refund to investors if the TON platform is not launched by October of the year 2019. At the same time, the company also issued a document that denies the promise.
A well-known instant messenger that attracted 850 million dollars from institutional investors in private sale, and now wants to double it with a second sale in late February, is so confident of success that he promised a refund if they can not launch the project by October 2019.
The company plans to use capital from its ICO to create a platform for rivalry with Ethereum. The Telegram Open Network or TON should become an ecosystem that supports applications, services and a store for physical and digital goods.
Although in one document sent to potential investors it was stated that if the product is not launched by October of the year 2019, they will receive back their investments, in another the claimed is completely refuted.
"There can be no guarantee that the Issuer or the Telegrams will have sufficient funds to effect payments of any amount at the expiry of the time limit (as defined in the Purchase Agreement) as necessary in accordance with the terms of the Purchase Agreements. Neither the Telegram nor the Issuer have any fiduciary or other obligation to use the funds obtained as a result of the sale of tokens in favor of customers "
This contradiction arose after the ICO schedule had already been criticized, and the experts on white papers found flaws.
The idea of CEO Pavel Durov about the ICO is a departure from the norm, since only accredited investors were invited to both the initial and the second round of financing. This method is more similar to the traditional form of venture capital to raise funds, when most of the discounted product is sold to private firms before the opening of the public round.
In addition to the "private" ICO, the company's own technical document has some inaccuracies. The document describes platform offerings, including document storage and DNS services, and it is projected that it will be able to make millions of transactions per second, but without any details on how to do it.
As for the claim for damages, as Joe DiPascwell of BitBull Capital said: "If they can collect 2 billion dollars, then it's almost a guarantee that the token will be launched."
Author: Olga Novikova, Analyst Freedman Club Crypto News
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