The end of Telegram's TON blockchain project was suddenly announced earlier this week. What does this mean for the future?
2019 was marked by a number of high-profile court cases between various cryptocurrency companies and the branch of the United States government known as the Securities and Exchange Commission, or SEC.
A blog post that accompanied the announcement explained that essentially, the SEC's winning of a preliminary injunction in a U.S. court was what caused Telegram to make the decision. This preliminary victory prohibited Telegram from launching TON or distributing GRAM tokens.
The move is particularly surprising because of Telegram’s announcement less than two weeks ago that it would be launching the network in April of next year.
What led to the sudden shift?
Telegram "could never live up to its own whitepaper."
“On the other side, TON oversold what it could technically deliver to such an extreme degree that it could never live up to its own whitepaper.”
In fact, Martino believes that “TON was doomed from Day 1,” “My 'I’m-not-a-lawyer' suggestion to anyone that asked for my opinion was to stay away. My 'I’m-an-engineer' opinion was that TON was not feasible.”
Instead, Martino believes that the project was “a classic overheated market moonshot venture that was begging to be made into an example.”
“From the beginning, there was way too much hype, and that’s saying a lot in crypto.”
Perhaps this is why Martino doesn’t seem to have found the decision to abandon the project very surprising--instead, “what’s surprising is that TON had telegraphed that they were in a position to make a really good defense from a regulatory perspective,” Martino said.
After all, “they had a world-class legal team to execute their case.”
Therefore, the choice to abandon the project is likely the only option that Telegramultimately found itself with: “they took the case in a direction that ultimately lost,” Martino said. “Given the high caliber of their legal team, I would not be surprised if, during discovery, it became clear to TON that they needed to shut down the project.”
The US Government "could not let TON go unchallenged."
TON’s defeat also seems to be part of a greater pattern of US government pushback against big tech companies who attempt to foray into cryptocurrency: after all, in addition to the SEC’s battle with Kik, Facebook’s Libra project has been the subject of much fire and fury from lawmakers in the United States.
Therefore, the victories that the US government has had over these high-profile crypto projects--the quashing of TON and the delay of Libra’s launch, as well as changes to its whitepaper--seem to send a clear message to other big tech companies who want to launch crypto projects.
Telegram didn’t shut down TON because of the US courts.
They shut it down because they realized the world didn’t need another smart contract blockchain that didn’t have any product market fit
“Libra has withered due to Facebook’s hubris,” Martino said. “TON is now dead because it was too big to fly that close to the sun without getting burned.”
Indeed, “the United States government could not let TON go unchallenged given the attention and significance of the project for the crypto industry at large.”
Telegram must have seen this coming: “evidence submitted by the SEC showed that the government was well-prepared to make their argument that TON had not adhered to existing regulations.”
What does this mean for the future of crypto in the United States?
Therefore, while companies like Kik and Telegram may have sought to “pave the way forward” for other tech companies to move into crypto, their efforts may have backfired: if anything, the SEC and the rest of the United States government may have used these legal battles as a way to sharpen their regulatory knives.
“Following Kik’s Kin, Facebook’s Libra, and now Telegram’s TON, the SEC has shown that it is extremely clear and consistent on one point,” Martino explained: “if you’re an existing social [or] chat application, you cannot ignore the law and launch your own cryptocurrency.”
And Martino believes that the US will only continue down the path of legal restriction: “my sense is that by 2021-2022, it will be impossible to launch a public blockchain in the United States unless the regulatory landscape changes,” he said. “Unfortunately, the TON case only makes that more likely.”
Therefore, time is of the essence: “every US-based blockchain project that hasn’t launched yet needs to do so ASAP,” he said.
“This comes at a time when other countries, especially China, have committed significant resources to develop their blockchain capabilities. The US is at risk of falling behind when it comes to being a major player in the future of technology.”
Finance Magnates reached out to Telegram for commentary, but did not hear back before press time. Comments will be added as they are received.
2019 was marked by a number of high-profile court cases between various cryptocurrency companies and the branch of the United States government known as the Securities and Exchange Commission, or SEC.
A blog post that accompanied the announcement explained that essentially, the SEC's winning of a preliminary injunction in a U.S. court was what caused Telegram to make the decision. This preliminary victory prohibited Telegram from launching TON or distributing GRAM tokens.
The move is particularly surprising because of Telegram’s announcement less than two weeks ago that it would be launching the network in April of next year.
What led to the sudden shift?
Telegram "could never live up to its own whitepaper."
“On the other side, TON oversold what it could technically deliver to such an extreme degree that it could never live up to its own whitepaper.”
In fact, Martino believes that “TON was doomed from Day 1,” “My 'I’m-not-a-lawyer' suggestion to anyone that asked for my opinion was to stay away. My 'I’m-an-engineer' opinion was that TON was not feasible.”
Instead, Martino believes that the project was “a classic overheated market moonshot venture that was begging to be made into an example.”
“From the beginning, there was way too much hype, and that’s saying a lot in crypto.”
Perhaps this is why Martino doesn’t seem to have found the decision to abandon the project very surprising--instead, “what’s surprising is that TON had telegraphed that they were in a position to make a really good defense from a regulatory perspective,” Martino said.
After all, “they had a world-class legal team to execute their case.”
Therefore, the choice to abandon the project is likely the only option that Telegramultimately found itself with: “they took the case in a direction that ultimately lost,” Martino said. “Given the high caliber of their legal team, I would not be surprised if, during discovery, it became clear to TON that they needed to shut down the project.”
The US Government "could not let TON go unchallenged."
TON’s defeat also seems to be part of a greater pattern of US government pushback against big tech companies who attempt to foray into cryptocurrency: after all, in addition to the SEC’s battle with Kik, Facebook’s Libra project has been the subject of much fire and fury from lawmakers in the United States.
Therefore, the victories that the US government has had over these high-profile crypto projects--the quashing of TON and the delay of Libra’s launch, as well as changes to its whitepaper--seem to send a clear message to other big tech companies who want to launch crypto projects.
Telegram didn’t shut down TON because of the US courts.
They shut it down because they realized the world didn’t need another smart contract blockchain that didn’t have any product market fit
“Libra has withered due to Facebook’s hubris,” Martino said. “TON is now dead because it was too big to fly that close to the sun without getting burned.”
Indeed, “the United States government could not let TON go unchallenged given the attention and significance of the project for the crypto industry at large.”
Telegram must have seen this coming: “evidence submitted by the SEC showed that the government was well-prepared to make their argument that TON had not adhered to existing regulations.”
What does this mean for the future of crypto in the United States?
Therefore, while companies like Kik and Telegram may have sought to “pave the way forward” for other tech companies to move into crypto, their efforts may have backfired: if anything, the SEC and the rest of the United States government may have used these legal battles as a way to sharpen their regulatory knives.
“Following Kik’s Kin, Facebook’s Libra, and now Telegram’s TON, the SEC has shown that it is extremely clear and consistent on one point,” Martino explained: “if you’re an existing social [or] chat application, you cannot ignore the law and launch your own cryptocurrency.”
And Martino believes that the US will only continue down the path of legal restriction: “my sense is that by 2021-2022, it will be impossible to launch a public blockchain in the United States unless the regulatory landscape changes,” he said. “Unfortunately, the TON case only makes that more likely.”
Therefore, time is of the essence: “every US-based blockchain project that hasn’t launched yet needs to do so ASAP,” he said.
“This comes at a time when other countries, especially China, have committed significant resources to develop their blockchain capabilities. The US is at risk of falling behind when it comes to being a major player in the future of technology.”
Finance Magnates reached out to Telegram for commentary, but did not hear back before press time. Comments will be added as they are received.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
MARA Stock: Shares of Wall Street's Biggest Crypto Miner Set to Surge 50%
Featured Videos
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!