Re:SEC halts Telegram's $1.7B token offering
by snagglegaggle on Friday October 11, 2019 @10:41PM
(#21230272)
So it sounds like a kickstarter. Does the SEC regulate those? Realize the IRS has ruled cryptocurrency isn't any different than property.
It looks like they claim they are allowed to (https://www.sec.gov/smallbusiness/exemptofferings/regcrowdfu...) but at the same time in various businesses it is normal to take the money before a thing is built, that's just usually how it has to work.
Re:SEC halts Telegram's $1.7B token offering
by cortesoft on Saturday October 12, 2019 @12:33AM
(#21230701)
Kickstarter doesn't give any money back to funders; they get a pre-defined good based on how much they give.
There is no reasonable expectation of profit for people funding via Kickstarter.
Re:SEC halts Telegram's $1.7B token offering
by theamk on Friday October 11, 2019 @11:36PM
(#21230480)
If someone would make a kickstarter that'd promise money returns, then yes, SEC would get involved.
Re:SEC halts Telegram's $1.7B token offering
by snagglegaggle on Saturday October 12, 2019 @04:24PM
(#21235954)
Yeah, and Telegram doesn't promise any return as far as I can tell.
Re:SEC halts Telegram's $1.7B token offering
by DiogenesKynikos on Monday October 14, 2019 @06:44PM
(#21253657)
Telegram promises Grams (digital coins), to be delivered once the TON network is operational. Telegram even projects what the price of a Gram will be on the market.
This is a vehicle for investing in Telegram's business. If you buy this contract, you're giving Telegram money, which they promise to use to develop a new service. They promise to give you a cut of the value created by that new service. This is very much like a stock offering.
Effectively, yes. People who buy these contracts are funding the development of the TON Network. The promised reward is in the form of digital coins on that yet-to-be-developed network. The contract only pays off if Telegram's development succeeds. It's effectively an investment in Telegram.