Telegram Cancels Public ICO

In January, the popular messaging app, Telegram, announced that it would launch an ICO to fund its Telegram Open Network.

Known for its end-to-end encryption and incredible blending of personal privacy and broad reach, Telegram has become uniquely aligned with the cryptocurrency movement.

In initial documents about their ICO, Telegram indicated that they hoped to raise $1.2 billion through their private and public token sale.

The crypto community has been clamoring for months over the prospect of purchasing Telegram's digital currency.

To the shock of many, The Wall Street Journal is reporting that telegram has canceled its planned public ICO after two rounds of private fundraising.

"Telegram Group Inc. has pulled in $1.7 billion by selling newly created cryptocurrency to fewer than 200 private investors."

Only investors with a net worth of more than $1 million or an annual income of more than $200,000 can participate in these private sales, and wealthy investors demonstrated a strong interest in Telegram's project.

By shirking the public ICO, Telegram may be protecting itself from future regulatory oversight or restrictions that might result from the uncertain legality of the ICO market.

Not to be deterred, many investors are taking to secondary markets to purchase the TON token that Telegram issued with the sale.

In the meantime, it seems like Telegram is well-funded for its new project, and it will be exciting to see what developments roll out in the future as the Telegram Open Network continues to develop.