Telegram, initially launched in 2013 as a straightforward messaging application, has evolved into a significant force within the cryptocurrency landscape, particularly through its integration with the TON blockchain. Founded by brothers Nikolai and Pavel Durov, the platform quickly garnered attention for its commitment to privacy and speed, establishing a solid user base that has only grown over the years.
Telegram Origins and Shift to Crypto
From its inception, Telegram distinguished itself with features such as encrypted chats and the ability to host large group conversations. The introduction of bots in 2015 marked a pivotal moment, allowing users to automate tasks and manage interactions more efficiently. As the platform continued to expand, voice calls were added in 2017, followed by video calls in 2020, enhancing its communication capabilities.
Telegram further innovated with the launch of channels, enabling users to broadcast messages to vast audiences. This feature was later complemented by stories for channels, allowing ephemeral content sharing with advanced privacy settings. The platform also introduced a transparent giveaway system, offering users the chance to win tangible prizes.
However, the Durov brothers envisioned a more ambitious future for Telegram, aiming to transform it into a decentralized platform that revolutionized digital transactions and communications. This vision materialized in the form of the Telegram Open Network (TON) blockchain, designed to facilitate millions of transactions per second while seamlessly integrating with the messaging service.
Developing the TON Blockchain
The journey of the TON Blockchain began in earnest with the release of a whitepaper by Pavel Durov in 2018, outlining its technological innovations and potential. Initially intended to incorporate cryptocurrency and blockchain features into the Telegram ecosystem, TON was crafted with scalability as a core principle. Its unique multi-blockchain architecture and sharding mechanism aimed to support an impressive volume of transactions.
To fund this ambitious project, Telegram sought to raise capital through an initial coin offering (ICO), successfully securing approximately $1.7 billion from 175 investors during a private sale of its native Gram token. However, this success was short-lived as the U.S. Securities and Exchange Commission (SEC) soon intervened.
Legal Battle with the SEC
In October 2019, the SEC filed a complaint against Telegram, alleging that the company had conducted an unregistered securities offering by selling Gram tokens. The SEC contended that these tokens qualified as securities and should have been registered under U.S. laws. The legal battle culminated in a decisive ruling in March 2020, where a U.S. federal court sided with the SEC, halting the distribution of Gram tokens.
This ruling led Telegram to postpone and ultimately abandon the project in May 2020, agreeing to refund the funds raised during the pre-ICO and pay an $18.5 million civil penalty. The repercussions of this decision resonated throughout the crypto industry, underscoring the regulatory hurdles faced by blockchain initiatives.
In the wake of Telegram’s withdrawal, independent developers continued to advance the TON project, which was subsequently rebranded as The Open Network. A non-profit organization, the TON Foundation, now oversees its development, with Steve Yun as president and Andrew Rogozov, a former CEO of VK, as a founding member. The community focused on enhancing the network’s architecture and refining its proof-of-stake consensus mechanism throughout 2021 and 2022.