Telegram Maintains That ‘Grams Are Not Investment’
According to a blog post by Telegram on January 6, its native crypto known as Gram is not an investment product. Telegram maintained that people should not expect profits by purchasing or holding the token. Such anticipation often describes security.
The U.S. SEC is in charge of the sale of securities in the U.S. In recent times, the SEC filed a court application against Telegram’s offering of its Gram token; this is assuming that Grams is under the jurisdiction of the commission. According to the company, the design of Gram is for use as a “medium of exchange” between users in the TON network.
The announcement noted that the company has ambiguous plans to introduce the TON as a decentralized project, as the company is not under any obligation to sustain the platform or develop any applications for it. Following the launch of the TON blockchain, the company emphasized that it will not have any control over it.
Besides, the company said that the purchase or sales of Grams are not possible right now. In the future, possessing Grams will not mean the possession of a piece of Telegram. Telegram reiterated its past claims that grams are going to be a currency or commodity.
The company released this announcement some days, following the request by its lawyers to a United States court towards the rejection of a demand by the SEC to release the information about the way the company spent $1.7 billion obtained in its initial coin offering in 2018. A report by Cointelegraph says that Telegram’s argument highlights the request by SEC as an “unfounded fishing expedition.”
The SEC thinks that the company violated securities laws by carrying out its $1.7 billion Gram token sales in 2018. The company denies that Grams are securities.
A study reveals that the value of the TON network is anticipated to surge over $20 billion within five years.
Featured image courtesy of Shutterstock. Source: Cryptopress.