Telegram Cryptocurrency Still Underway
Facebook isn’t the only social media giant that’s looking to enter the cryptocurrency market. Telegram is another social network that’s moving forward with the development of their digital currency. The first batches of these coins will be released by Telegram Cryptocurrency in the next two months and will be named “Gram”. The endgame for this social network is to have anywhere from 200 Million to 300 Million clients trading the Gram Token through the Telegram Messaging Service. All of this information comes from undisclosed sources close to the company.
Telegram is following the same business structure that Facebook implemented for its Libra token. While Facebook has undergone substantial scrutiny relating to the Libra Coin, Telegram hasn’t had any regulators or governments take notice of their online currency. This is primarily because Telegram hasn’t ever had data hacks or sold client information to third-party companies. This has allowed the social network to move forward with the Gram Token without any hiccups. The critical difference between Facebook and Telegram is that TG has been secretive with the Gram Token, while Facebook has publicly discussed the Libra Coin.
Some legislators have expressed concern relating to Gram and that it could be beneficial for money launders or drug dealers. The United States has already shut down all chances of any of these crypto projects from entering the United States of America. A Crypto Lawyer, Richard Levin, stated: “Anyone trying to build this type of token system has to be careful on any number of levels with regulators. I suspect that regulators will take a very close look at this offering.”
Telegram Disregards Government Authorities
Telegram Cryptocurrency has openly expressed its disagreement with legislation and government authorities that claim social media networks wanting to enter the crypto space have ill intentions. The creator of Telegram is a man who fought against the Russian Government and was forced out of the nation in exile. This man has always fought against the tyranny of governments, and it’s shown throughout his social media networks.
The primary service for Telegram is the capability to send encrypted messages between phones worldwide. The service has become popular in Asia amongst terrorists, protestors and criminals. Being able to send funds through the application would surely increase terrorism funding in the Middle East, allow criminal groups to send funds worldwide and enable protestors to hide money from the Government. Considering all these factors, it’s shocking that regulators haven’t looked into Telegram like they have been with Facebook.
How will the Gram Token Work?
The Gram Token is slated to operate through a decentralized exchange, similar to how Bitcoin is managed. However, this is another red flag, as decentralized exchanges can hide money from government regulators easily. The firm, Telegram, states that the network won’t be in their control and will be run entirely through computers, defending their claim that money won’t be hidden on financial reports.
There’s been substantial scepticism relating to Telegram amongst the crypto community. Retail investors and institutional clients are requesting that regulators review over the Gram Token to ensure that it won’t negatively affect the market space. Security firms have also expressed that this token is considerably less secure that Libra, BTC, Ethereum or Litecoin. With all of these pre-warnings, multiple firms in the United States and Russia still invested in the Gram Token. Before the token can be publicly released, legal documents will be required by the FCA and SEC. Refusal to do so will result in the coin immediately being banned in multiple jurisdictions worldwide. The question now is, which social media network will be banned worldwide by regulators first? Facebook or Telegram?