Thursday, October 17, 2019

Telegram [GRAM] Proposes Pushing Back Deadline of Launching TON Network until April 2020

Embattled messaging service Telegram is requesting its investors of the proposed Telegram Open Network (TON) blockchain to push back the allocation of Gram tokens that were presold in 2018 to allow for a legal battle with the SEC. Last week, the SEC secured an emergency temporary restraining order from a federal court seeking to stop the forthcoming Gram issuance that was scheduled for October 30th.

According to the seller agreement from the Telegram private token sales that were conducted at the beginning of 2018, the investors were entitled to receive the Gram tokens on or before October 30th 2019, failure to which, Telegram is supposed to return the investor funds.

Telegram was supposedly working towards ensuring that it delivered on the October 30th deadline but now the SEC has thrown a curveball which threatens the successful rollout of the TON network. In a second letter sent to the investors, Telegram is proposing that it pushes back the deadline for the launch of TON as well as the issuance of the Gram tokens to April 30th 2020. To postpone, a majority vote is necessary but one oddity to this exercise is that both groups of investors – the participants of the first and second private sales – need to vote separately. A majority vote from each group is necessary to postpone the launch. This means that there is a possibility of either group voting in reverse of the other.

“In the event that only one group approves the extension, then that group’s purchase agreements will remain in place while the other group of agreements will be terminated,” Telegram wrote in the letter. “In these circumstances, we propose to make certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date.”

The group that will vote not to postpone the launch will be receiving their funds on or before October 30th as per the initial agreement.

telegram ton

The SEC’s case is scheduled to be heard next week on October 24th to terminate the launch of TON. Telegram is seeking to hold the voting exercise before the court date.

The SEC, in its argument, states that Telegram and TON Issuer’s 2018 token sale of Grams through a SAFT (Sale Agreement for Future Trade) was illegal terming the tokens as securities. This means that Telegram should have registered with the SEC to issue Gram tokens to investors. Telegram’s argument is that it did file an exemption request back in 2018 titled Form D. Form D allows for an entity to sell securities without registering with the SEC but it has to ensure the participants of the sale are accredited investors, something Telegram made sure of by conducting a private sale. However, SEC maintains that the Gram tokens should have been registered because the participants of the two private sales are not barred from selling the tokens to non-accredited investors.

It is expected that both parties will stick to these arguments but this all remains to be seen next week in Manhattan New York where the SEC filed the case.

The post Telegram [GRAM] Proposes Pushing Back Deadline of Launching TON Network until April 2020 appeared first on Crypto Economy.

Telegram [GRAM] Proposes Pushing Back Deadline of Launching TON Network until April 2020

Kava Labs to Sell Tokens on Popular IEO Platform Binance Launchpad Next Week

Leading cryptocurrency exchange Binance has announced the next project on its popular IEO platform the Binance Launchpad. Kava Labs, which has so far raised about $5.48 million in three private tokens sales is seeking to raise $3 million more through the Binance Launchpad scheduled for October 23rd.

Kava is a decentralized finance (DeFi) platform startup according to an announcement by Binance on Wednesday, October 16th. Kava Labs IEO brings the total number of projects hosted on the Launchpad to 10 with the best performing project, Matic – which raised $5 million in its April IEO – returning about 445% to its IEO investors in dollar terms.

Perlin is perhaps the worst performer of the bunch losing 51% of investor funds since its August IEO. In total, all the nine projects so far have raised $49 million from their IEOs on the Launchpad. Kava Labs will now be joining the fray next week, offering IEO participants 6.52% of its total supply in the token sale. Each KAVA token will sell for $0.46 in a single Binance Coin session.

According to the Binance announcement, the Kava IEO will be conducted through the usual lottery ticket method but following the conclusion of the exercise, Binance will conduct an airdrop to the individuals that will have non-winning tickets. 326,087 KAVA tokens (approx. $150,000) will be airdropped.


As is the previous lottery sales, Binance will be recording account balances for a period of 30 days. Actually, the recording of the account balances has been ongoing since September 23rd. the exercise will conclude on October 23rd at 0:00 UTC. “The final BNB holding amount for each user will be determined as the average of the 30 days,” the exchange announced.

The decentralized finance niche is growing fast and Kava seeks to introduce more novel features to a still-growing market. Here’s a little explainer by Binance Research of the Kava project:

“Kava is a cross-chain DeFi platform offering collateralized loans and stablecoins to users of major crypto assets (BTC, XRP, BNB, ATOM, etc.). It is supported by over 100+ business entities around the world, including prominent crypto funds and major crypto projects like Ripple and Cosmos. The platform features two tokens: KAVA, a governance and staking token responsible for securing the network and voting on key parameters; and USDX, an algorithmically maintained stablecoin backed by crypto asset collateral.”

The post Kava Labs to Sell Tokens on Popular IEO Platform Binance Launchpad Next Week appeared first on Crypto Economy.

Kava Labs to Sell Tokens on Popular IEO Platform Binance Launchpad Next Week