Liquid Cancels Gram Token Sale, Initiates Refund

Liquid, a Japanese crypto exchange, has canceled the sale of Telegram's proposed digital currency Gram.

As reported by Finance Magnates earlier, the exchange became the first to hold a public sale of Telegram Open Network’s (TON) digital token last July. The exchange received funds from the investors and held them in an escrow account until the issuance of tokens on October 31.

However, the delay in the issuance of Gram due to the charges brought by the Securities and Exchange Commission (SEC) has forced the Japanese exchange to cancel its sale.

In an official announcement published last week, Liquid specified cancellation of Gram token sale. It has also initiated a refund to the investors.

“The Gram Token Sale on Liquid has been canceled, and all funds previously held in escrow by Liquid have been returned to Liquid users who participated in the Gram Token Sale,” the exchange noted.

Per the announcement, the delay of the token issuance has violated the exchange’s terms of services.

“Under the Gram Token Sale Terms of Sale, Liquid is required to return all funds committed by Liquid users in the Gram Token Sale due to the fact that the TON mainnet was not launched by 30 November 2019,” the exchange added.

Investors having high hopes

In its Whitepaper Whitepaper A whitepaper is defined as a pitch or persuasive, authoritative, and often in-depth report on a specific topic that presents a problem along with a respective solution. Marketers rely on whitepapers for a variety of reasons, most simply to educate an audience about a particular issue or to promote a particular methodology. In the cryptocurrency world, a whitepaper is a document that should contain all of the information about the technology that was used to build a cryptocurrency network, and ho A whitepaper is defined as a pitch or persuasive, authoritative, and often in-depth report on a specific topic that presents a problem along with a respective solution. Marketers rely on whitepapers for a variety of reasons, most simply to educate an audience about a particular issue or to promote a particular methodology. In the cryptocurrency world, a whitepaper is a document that should contain all of the information about the technology that was used to build a cryptocurrency network, and ho Read this Term, Telegram mentioned that in case of any failure of Gram issuance by October 31, 2019, the company would be obligated to issue a refund to the investors. Though the company was ready for the launch of its Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term, a lawsuit by the SEC alleging Gram to be unregistered securities forced the company to delay the launch.

Telegram also sought permission from all its investors to participate in the two separate token sale rounds for delaying Gram issuance till April.

Meanwhile, on the SEC’s request, the court ordered Telegram to share the financial records of the token sale with the regulator. The two parties will face the court for the next hearing scheduled for February 18-19.