The Telegram founders are working on the TON blockchain despite the SEC keeps the hunt for presumably one of the dollar’s possible competitors.
Telegram team has released a document that is useful if you plan to create a website running on the TON blockchain. The document suggests that TON users may want to create some websites to refer friends and clients to their projects. Unlike the usual sites, these are not working over HTTPS or HTTP protocol. The system is using ADNL to differ the addresses of websites. There is no need for HTTPS at all because the encryption runs via the RLDP protocol.
If someone needs to access the TON-based website, the usual browsers won’t help. They work well with the HTML pages, but indie page formats like WML, for instance, is out of sight. However, to visit the RLDP website you can use a special proxy that runs on your device.
Also, the Telegram team has released a set of updates to the blockchain whitepaper. Their published whitepaper was renewed on February 3, 2020. They have put lots of time and effort into the detailed explanations on what makes what and such. It takes more than a few days to dive into the document and check all the information about the so-called ‘Catchain Consensus’ model.
John Hyman Confirmed SEC’s Allegations Against the Telegram Group
The Telegram’s former investment advisor John Hyman had a chat with the SEC representatives concerning Durov’s claims. He has confirmed that, back in 2018, after Durov brothers officially stopped selling GRAM tokens, they kept selling them unofficially. Such a practice is against the U.S. laws because you cannot sell the security after the initial offering period ends.
The SEC says it’s obvious now that Durovs were making money out of additional GRAM sales conducted by the underwriters. It appears that the SEC doesn’t like the fact that Telegram’s business partners such as Da Vinci Capital and Gem Limited were re-selling the tokens to outside investors for $2 and $13,1 million respectively. More than that, among the GRAM investors there is a group of anonymous men from the U.S. who bought the tokens via third parties and did hide the fact from the regulators.
The SEC Commissioner’s Speech May Provide Help for the Telegram Lawyers
During the speech about cryptocurrencies, SEC Commissioner Hester Peirce has made plenty of interesting claims. For instance, she said that the crypto industry needs at least three more years to establish appropriate laws. Also, she thinks that the regulators may act too harsh when it comes to the blockchain industry, and the honest developers have to prove they’re honest before getting to the work itself. She said:
“The SEC’s approach in these cases has made it extremely difficult for a company to distribute a token without running into a charge that the company is engaged in a securities offering”
The point of her International Blockchain Congress speech sound very familiar to what Telegram’s developers and supporters say in the numerous letters to the court. Specifically, Telegram counsel Alexander Drylewski wrote a letter to the U.S. District Judge of Manhattan, Kevin Castel. In it, he claimed that Hester Peirce’s speech will be used by the Telegram lawyers on the hearings. It appears that both SEC Commissioner and the Telegram founders share similar views on how the blockchain industry should grow.
Whether Durovs Win or Not, the Idea of Blockchain is Forever
Pavel Durov and his brother Nikolai are the two who like to avoid restrictions and rules. When Russian authorities asked them to give out Telegram decryption keys, they said it is impossible. Earlier, they have asked for the Vkontakte full access, which only made Durovs hurry to sell VK and run away from the country while they can. When back in May 2018 Apple corporation refused to update Telegram, Durovs were kindly waiting till the situation resolves in their favor.
So far, Durovs never did as someone tell them to do. Even now, they claim that the SEC doesn’t have to deal with the project: GRAM is not a security, its a commodity. Hence, it’s the CFTC agency suppose to take action regarding Telegram’s offer credibility check. Is the SEC powerful enough to make Telegram founders bend the knee? We’ll watch and keep you well informed.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.