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Telegram Open Network

Why Is Toncoin (TON) Spiking? Analysis Of The Seven-Day Chart

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A bullish trend is now erupting for Toncoin (TON), which has broken over two significant resistance levels, from $2.10 on December 12th to $2.30 today. Near $2.40 is where the next resistance can be observed.

According to the data from the CoinMarketcap, Toncoin (TON) has grown significantly over the past week, by over 30.62%, and noticeably during the past day, by about 15%. Additionally, the token is currently trading at $2.35.

In 2018, the encrypted messaging service Telegram created Toncoin (TON), a decentralized layer-1 blockchain that was named “Telegram Open Network.” After being abandoned, the TON Foundation took up the project and changed the name to “The Open Network.”

Source: Tradingview

In the past few weeks, TON’s price has been rising. TON climbed significantly after establishing a baseline over the $1.60 mark. After breaking above the $1.85 resistance area and settling above the 50-day simple moving average, the price began to build momentum.

The bulls are moving higher and closer to the $2.40 region. More gains might be seen in the direction of the $2.50 and $2.65 levels if the bulls manage to move upward. Otherwise, it may begin a downward correction and return to the $1.85 support region during the next several days.

However, Toncoin (TON) is one of the top cryptocurrencies right now, leading the market in weekly gains. The CoinMarketcap’s data shows that the market valuation of TON rose by 15.92% during the past day, while its 24-hour trading volume increased by 13.47%.

Growing Trends Of Toncoin (TON)

TON Blockchains are becoming more and more popular these days. According to TON’s Weekly Digest, TON-based anonymous number sales were introduced by Telegram. In addition, Cryptomuscom implemented support for TON, and DefiLlama also began monitoring it.

The +888 virtual numbers have been listed for sale on the $TON blockchain as collectibles by the Telegram messenger team. Users may access Fragment.com and experience the highest privacy by logging in with TON blockchain-powered anonymous numbers.

The CEO of Telegram, Durov, previously worked on creating Fragment, a platform that utilizes TON and enables users to sell off their names. Durov thinks the new items will take the same amount of time to complete as Fragment did, which took the team five weeks.

After that, Durov recently announced that:

Telegram’s next step is to build a set of decentralized tools, including non-custodial wallets and decentralized exchanges for millions of people to securely trade and store cryptocurrencies. This way we can fix the wrongs caused by the current excessive centralization.

Nevertheless, TON’s today’s rise can be attributed to its most recent announcement that users may now utilize the other three decentralized exchanges on TON in addition to upcoming Telegram’s own $TON-based DEXs to trade their tokens and many others.

Related Reading |  Binance’s CZ Responds To Withdrawals Surge Amidst Investors’ Concern

Telegram and SEC Courtroom Tale Ends with $1.2 Billion Settlement

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Federal judge Kevin Castel signed the final ruling in the Telegram and SEC courtroom tale on June 26. The last court ruling by the New York Southern District Court ordered Telegram to reimburse investors up to $1.2 billion after the Telegram Open Network ICO collapsed.

The United States court approved the final judgment of a lengthy court battle between the Securities and Exchanges Commission and Telegram yesterday. The protracted court battle began when the SEC ordered Telegram to cease distributing its imminent GRAM tokens to the investors.

In a statement regarding the conclusion of the case, the SEC said:

“New and innovative businesses are welcome to participate in our capital markets; but they cannot violate the registration requirements of the federal securities laws.”

SEC demands fines in millions of dollars

In a judgment proposal by the securities regulator on June 25, the authority requested the federal Court to demand fines in millions of dollars from the several defendants connected with the lawsuit. 

Moreover, Telegram accepted to repay $1.2 billion to TON investors and penalties to the Securities and Exchange Commission. Of the total amount, $1.19 billion represents the amount paid by the defendants as ending total; the initial contract agreement to refund investors.

Telegram and SEC courtroom tale awaiting penal settlements

On the other hand, Telegram is inclined to pay $18.5 million in civil penalties. According to the SEC, the penal fees should be settled within thirty days after the approval of the judgment proposal. As per the consent reached on June 11, Telegram has agreed to pay the $18.5 million. The agreement, approved by the court, finally puts the Telegram and SEC courtroom tale to an end after a long period.

In conclusion, if Telegram fails to settle the amount in thirty days after court approval, the SEC may implement the Court’s ruling for disgorgement and civil penalty by going for civil contempt. 

Telegram TON Blockchain Project Shut Down Following Court Order

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The widely anticipated blockchain project Telegram TON has been shut down following problems with its native GRAM token. Two years ago Telegram raised $1.7 billion in an initial coin offering ( ICO).

Telegram ‘s blockchain project was stopped after the Securities and Exchange Commission (SEC) sued the firm for claiming that GRAM was a safe. This aftermath of Telegram ‘s long court battle with the SEC is an example of U.S. government influence over global markets, and the need for decentralization.

End of road for Telegram TON blockchain project

The Telegram Open Network (TON) project by the messaging company was eventually closed. Telegram CEO Pavel Durov issued a statement stating that the project had indeed been halted. He has warned the public to ignore any other scheme that TON appears to be promoting.

In addition, the CEO thinks the U.S. government’s decision to disband Telegram TON blockchain initiative doesn’t add up. Yet the communications giants have no choice but to abide by the order. The prestige and role of the country as global leaders in financial matters and technology, gives it the power over such industries. Durov wrote this:

“Sadly, the U.S. judge is right about one thing: we, the people outside the U.S., can vote for our presidents and elect our parliaments, but we are still dependent on the United States when it comes to finance and technology.”

Telegram offers TON investors with solution

Recently, in the exchange for equity, the messaging firm presented TON investors with the ability to advance their funds to the company. Yet the U.S. investors soon overruled this tool. As a result, all GRAM investors were removed from this bid. Investors will be reimbursed with just 72 per cent of their initial investment, as per the earlier agreement.

When a company develops a blockchain network, the company is at risk of being called to court. The court or regulators will call for dissolution of the entity; because there is a consistent set-up for how the company is run. The new case of Telegram TON blockchain project being forced to shut down is a perfect example of that.

In contrast, blockchain networks such as the Bitcoin Network and Ethereum Network are run or controlled by any definite organization. If regulators or the court wanted to summon either network, they would not have anywhere to address them, since there is no central authority that controls them; the beauty of decentralization.

U.S. Court Judge Issues Temporary Injunction Against Telegram’s Digital Token Offering

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A U.S. federal court judge has directed the Telegram messaging platform to refrain from issuing its native gram tokens as scheduled in April, accepting a Securities and Exchange Commission (SEC) request for an injunction.

In a preliminary injunction held on March 24, Judge P. Kevin Castel, of the New York Southern District Court, stated that the SEC had demonstrated a substantial likelihood of victory in substantiating that the purpose of Telegram to roll out grams token is “an offer of securities under the Howey test. The Howey test refers to a factual test developed by the Supreme Court to evaluate if such precise transactions meet an investment contract’s requirements.

The Judge wrote:

“The Court finds that the SEC has shown a substantial likelihood of success in proving that the contracts and understandings at issue; including the sale of 2.9 billion Grams to 175 purchasers in exchange for $1.7 billion; are part of a larger scheme to distribute those Grams into a secondary public market; which would be supported by Telegram’s ongoing efforts.”

Telegram raised $1.7 billion for gram tokens in 2018

Two years ago, the messaging giants raised $1.7 billion through an ICO in an agreement to supply 2.9 billion gram tokens to 175 buyers. The buyers would make good profits after a resale of the digital asset to the public. According to Telegram, the project was legal citing a private placement of securities covered by a Regulation D 506(c) exclusion.

Moreover, Telegram sold the gram digital asset under a presumed simple consensus for future tokens or SAFT. SAFT refers to an investment contract built to offer an adaptable substitute to an ICO. 

The SEC had complained back in October 2019 that the selling of the Telegram Open Network (TON) was unlawful. The agency argued that the grams made up of securities should be registered with SEC under U.S. laws and the selling of securities. The messaging platform has since disagreed with the claims. However, Telegram has agreed to withhold the launching of Telegram Open Network (TON) until its dispute with the SEC is resolved.

Last year, on 11 October, the SEC successfully requested a temporary injunction to halt the inauguration of the TON blockchain. Generally speaking, Gram tokens can not exist without the TON blockchain network. Since that temporary injunction, the SEC has been struggling to stop the blockchain from being launched for good.

The Securities and Exchanges Commission made a huge leap towards obtaining a permanent injunction in the latest case. According to Judge Castel:

“Considering the economic realities under the Howey test, the Court finds that in the context of the scheme; the resale of Grams into the secondary public market; would be an integral part of the sale of securities without a registration statement.”

Despite the closure of courtrooms during the ongoing COVID-19 crisis, Castel’s ruling was imminent before the end of the month. According to a clause during the purchase of grams agreement; Telegram may reimburse its investors if the TON network fails to launch by April 30.