While everyone`s attention in the crypto sector was caught by Facebook’s Libra project, another messaging giant, Telegram, is planning to join the crypto race with their own cryptocurrency, dubbed Gram.
According to Telegram investors, the first batches of the new Gram coin should come out in the next two months. Also, Telegram will launch an in-house wallet service for between 200 to 300 million users. Telegram plans to make Gram a global currency, allowing Telegram users to send and receive funds directly in the app. Telegram’s plans are backed by $1,7 billion, raised from large-scale investors.
Despite Telegram’s popularity, their plans remained in secrecy, which raises questions about transparency and security of the project. The lack of transparency could also provoke difficulties with regulators and both local and global government authorities.
The regulatory frenzy which Libra caused is mainly because projects like Gram or Libra could be used as a medium for financing illicit actions, such as drug dealing, money laundering and terrorism. The U.S.-based SEC has already made steps to shut down smaller crypto projects.
Richard Levin, a lawyer specialized in cryptocurrencies, stated that such a project has to be roll-out cautiously because regulators are taking a very close look at the entire step-by-step process of delivery.
Telegram’s plans of releasing a cryptocurrency date back from 2017, when the company pitched in front of potential investors, describing Gram as “a cryptocurrency project, operating on a similar to Bitcoin decentralized network of computers. The sales pitch, however, met strong skepticism from large-scale venture capital companies.
Telegram is renowned for its encryption, with governments such as Iran and Russia taking actions to stop Telegram in their countries. The application is widely used among journalists, dissidents, and protesters. Telegram’s creator, Pavel Durov, had issues with government authorities in Russia, which led to Durov fleeing Russia and selling his first major social network – Vkontakte.