Facing regulatory pressure, Telegram delays TON launch until 2021 and offers to return $1.2 billion to investors

One month after a US judge halted the distribution of GRAM tokens, Telegram has decided to postpone the launch of the TON blockchain until Apr. 2021. The lengthy delay allows token sale investors to legally reclaim up to 72% of their initial purchases, totaling ~$1.2 billion. Telegram plans to offer these investors an alternative option, however. According to CoinDesk, investors might be able to lend these funds to the project in exchange for 110% on their original investment (potentially paid out in GRAMs or another cryptoasset), or even Telegram shares should the problems with regulators persist.

Why it matters:

• Today's decision marks the potential end of a months-long battle between Telegram and SEC that began last Oct. The SEC clearly won, and this decision could eventually impact other pre-launch networks that raised funds via a SAFT. As for TON, it's apparent Telegram does not believe this is the end. The company is reportedly "continuing to engage in discussions with the relevant authorities." But unless a community-run group launches a fork of the TON code, there is little to no chance TON launches anytime soon.
• Telegram's new offer to investors is probably more intriguing than the initial contract. Telegram's messenger app recently hit 400 million MAUs (monthly active users), and founder Pavel Durov still owns 100% of the company. As CoinDesk notes, many investors "would prefer to have their token allocations converted into Telegram shares." Since TON's legal troubles are far from over, some token sale investors could stay on board with the project and hold out for the chance to get their hands on Telegram equity.

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