The encrypted messenger Telegram has raised USD 850 million in a sale of its own coin to private investors. According to a SEC filing, the money will be used to develop its own blockchain architecture for payments, develop and maintain the Telegram Messenger and for other corporate purposes.
The sale is thought to precede an initial public offering of the company's coin that may reach up to USD 2 billion. People familiar with the matter told Bloomberg that the second tranche of USD 1.15 billion will follow in March. Strong demand led the company to increase the offering from an initial USD 1.2 billion.
Participants in the offering would be investing in what’s known as a Simple Agreement for Future Tokens, or a contract that secures the right to receive tokens once they’re listed in cryptocurrency exchanges. Telegram expects its tokens, which will be called Grams, to be listed in January 2019, or end of 2019 at the latest. If that doesn’t happen, participants in at least the private sale will get a refund, according to its filings.
This is the first outside investment in Telegram, which was founded and self-financed by CEO Pavel Durov and his brother Nikolai, who also created the Russian social network Vkontakte. The sale is also thought to be the largest initial coin offering to date. The Telegram messenger is used widely by traders in cryptocurrencies, making it a logical choice for the company in fundraising.
