Telegram to Shut TON Testnet as the Blockchain Could Not Launch

Tuesday, 07/07/2020 | 07:05 GMT by Arnab Shome
  • The messaging app have to pay a penalty of $18.5 million to the SEC.
Telegram to Shut TON Testnet as the Blockchain Could Not Launch
Reuters

Encrypted messaging platform Telegram is finally closing the test network of its earlier proposed Blockchain called TON, putting an end to the highly ambitious project.

In an update published on Monday at the website of TON, the team highlighted that it will end the support for the blockchain test network on August 1, 2020.

“We are discontinuing our support of the test network of the TON Blockchain. Our remaining validators will be switched off not later than 1.08.2020,” the team managing the testnet noted. “Please save all relevant data and terminate your testing process.”

However, if someone still wants to continue testing on the blockchain network, they can do so by installing the testnet validators.

SEC vigilant on the established platforms launching a blockchain

Telegram raised over a billion from investors via an Initial Coin Offering (ICO) ) in early 2018 for the launch of a blockchain network on its existing messaging platform. The US Securities and Exchange Commission (SEC), however, raised a red flag on the project for violating securities law in the country, as according to them the company distributed unregistered securities in the ICO.

After SEC’s injunction and delaying the launch of the blockchain twice, Telegram finally gave up on its blockchain project last May and converted the ICO investments into a loan option for a year.

Telegram also withdrew its court battle against the court order as the legal complexity was getting worse, affecting the launch.

In a settlement deal, the US regulator imposed an $18.5 million penalty on Telegram and requires the social network to disgorge nearly $1.2 billion to refund its ICO investors.

Meanwhile, the Russian authorities recently lifted the ban on the messaging platform after two years, due to the messaging app’s wide usage in propagating messages.

Encrypted messaging platform Telegram is finally closing the test network of its earlier proposed Blockchain called TON, putting an end to the highly ambitious project.

In an update published on Monday at the website of TON, the team highlighted that it will end the support for the blockchain test network on August 1, 2020.

“We are discontinuing our support of the test network of the TON Blockchain. Our remaining validators will be switched off not later than 1.08.2020,” the team managing the testnet noted. “Please save all relevant data and terminate your testing process.”

However, if someone still wants to continue testing on the blockchain network, they can do so by installing the testnet validators.

SEC vigilant on the established platforms launching a blockchain

Telegram raised over a billion from investors via an Initial Coin Offering (ICO) ) in early 2018 for the launch of a blockchain network on its existing messaging platform. The US Securities and Exchange Commission (SEC), however, raised a red flag on the project for violating securities law in the country, as according to them the company distributed unregistered securities in the ICO.

After SEC’s injunction and delaying the launch of the blockchain twice, Telegram finally gave up on its blockchain project last May and converted the ICO investments into a loan option for a year.

Telegram also withdrew its court battle against the court order as the legal complexity was getting worse, affecting the launch.

In a settlement deal, the US regulator imposed an $18.5 million penalty on Telegram and requires the social network to disgorge nearly $1.2 billion to refund its ICO investors.

Meanwhile, the Russian authorities recently lifted the ban on the messaging platform after two years, due to the messaging app’s wide usage in propagating messages.

About the Author: Arnab Shome
Arnab Shome
  • 6404 Articles
  • 82 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6404 Articles
  • 82 Followers

More from the Author

CryptoCurrency

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}