Telegram offers a new deal to the non-US GRAM investors

Written by: Ali Raza
May 5, 2020
  • Telegram recently offered a new deal to its existing investors due to its prolonged conflict with the SEC.
  • The company offered to pay investors 72% of the investment, or to pay 110% if they stay an extra year.
  • The offer only includes non-US investors, while those from the US were bought out already.

Telegram’s TON blockchain project definitely does not follow the plan anymore, and the company finally decided to take action. After being blocked for months by the US SEC, Telegram announced that its investors will have a new deal. They can either take the 72% refund and exit the project or not get their refund at all for another year.

Telegram once again changes its agreement

When it sold its tokens, Telegram guaranteed that it will launch its project by October 2019. However, due to the fact that it included US investors, allegedly offering unregistered securities, the SEC decided to halt its plans.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

As a result, Telegram was unable to proceed with the plan and launch the project. Instead, it had to delay the launch twice already. At this time, the launch is not expected before April 2021 — nearly a full year from now.

So, Telegram decided to update its agreement, which previously said that the project will refund investors if it fails to launch. The company offered a new solution.

Investors can now either opt to exit the project and receive only 72% of their initial investment or stay for another year. If they choose to remain, their investment in Telegram will be considered a loan. As a result, those who stay will receive 110% of their GRAM investment. Further, they will be allowed to choose whether they want their investment in Gram token or in another crypto.

Tip: looking for an app to invest wisely? Trade safely by signing-up with our preferred choice, eToro: visit & create account

The offer does not include US investors

However, according to a new letter to investors sent on Monday, May 4th, the company changed the rules once more. It no longer offers to pay in any cryptocurrency. The announcement says “Unfortunately, based on more recent discussions with relevant authorities and our counsel, we have made the difficult decision not to pursue an option involving grams or another cryptocurrency due to its uncertain reception from the relevant regulators.

The loan option still stands, but the company will no longer pay 110% of the initial investment in crypto. Furthermore, it is also unclear if the firm plans to continue the development of its project.

One thing to note is that the offer only includes investors that are not in the US. The firm decided to buy out its US-based investors immediately.