Telegram TON Blockchain Project Shut Down Following Court Order

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.