Upset investors were given two options after the shutdown of Telegram’s TON project and these two options were either to take back 72% of their investment immediately or loan the funds to Telegram for a year for getting back 110% in April 2021. The expenditure on developing TON blockchain and its messaging app brought no value to the investors.
Investors were thinking to file a lawsuit against Telegram CEO Pavel Durov as he spent on the project got investors nothing. About a half of the investors might be considering lawsuits at the moment and reportedly potential litigation is being actively discussed.
The excitement is high as the project is over and investors in U.S., Europe and Russia are negotiating these potential lawsuits. Investors thought Durov would fight for the existence of TON but the risks he faced exceeded the upside he could get if the project was launched. People are hungry to get their money back and investors said they would be with Durov until the end.
Letting it quit
The lawsuit of U.S. Securities and Exchange Commission (SEC) in federal court against Telegram’s tokens has altered the fate of TON leading the project to be over. Durov said they have delivered much effort on developing TON and a cryptocurrency were to name Gram. The man said they will stop developing TON blaming the U.S. regulators. Some investors are taking themselves apart from Telegram receiving 72% of their initial investment.
Some investors have chosen the second option to see what happens. They believe in positive outcome after one year.
Bitscale Capital reportedly joined the community launch of a network based on the TON code namely Free TON as a validator which increases the optimism. Telegram’s CTO Nikolai Durov wrote the code so well that there is a ray of hope the network can attract many validators, services and users in future.
Lacking of two-way communication with investors and being unpredictable in decision making is taking away the trust between Telegram and its investors. Telegram showed disrespect to its investors by not offering them equity after they effectively funded the company’s messenger app. The launch of free TON also didn’t look good to many investors.
Expectation of Equity
The value of equity being unknown, some investors are still desirous of negotiating an equity deal. Some other had been expecting to turn their token allocations into shares in Telegram from the start. Those who have been in desire to get equity, they are going to fight for it.
Some are thinking taking the loan offer will deduct the right to negotiate with Telegram. Pavel Durov doesn’t want to enfeeble his ownership of Telegram and recent weeks show investors can apply enough pressure to influence Telegram’s strategy at least partly. Telegram announced new loan terms in an email on May 6 confirming investors would receive 72% of funds with interest when the company repaid them sometime over the coming year but it was withdrawn later. During this global crisis and pandemic, it will be very tough to find an investor willing to buy Telegram. Some are thinking about alternative sources to get their money back via the court.