Telegram shuts down its GRAM cryptocurrency and TON network

After a dispute in the U.S. courts, the instant messaging platform Telegram finally decided to withdraw its central cryptocurrency subsidiary, Telegram Open Network (TON). According to hacking course experts, after making the announcement on his YouTube channel, Telegram founder and CEO Pavel Durov said “a court has shut down TON’s advance in the US.”

TON is a project with similar characteristics to similar to Facebook’s Libra, which also faces multiple questions from economic regulators around the world. “Telegram’s active participation in the field of cryptocurrencies has ended,” Durov said. The Telegram CEO also asked users not to trust sites that use his name or the Telegram brand or the abbreviation “TON” to promote any virtual asset project.

Telegram developers had been working on their own blockchain platform (the TON system) and a cryptocurrency (which was to be called the Gram) for almost three years. From its inception, the project was closely followed by the U.S. Securities and Exchange Commission, as mentioned by hacking course experts.

In a ruling last year, the SEC asked Telegram to stop the sale of its Gram cryptocurrency after the company failed to register a 1.7 billion anticipated sale of tokens prior to its public launch, members of the cybersecurity. The founder of Telegram also criticized this decision in his announcement to stop the project: “The US court even declared that the sale of Grams should be stopped not only on American soil, but worldwide,” said Durov. “An American citizen could find some way to access the TON platform after its launch. Therefore, to avoid this, Grams should not be allowed to be distributed anywhere in the world, even if all other countries on the planet appear to be perfectly fine with TON,” he said.

Cryptocurrency trading keeps facing several drawbacks. Months ago, rumors about Facebook’s Libra being shut down arose. Multiple reports stated that some large payment management companies, such as MasterCard, Visa, eBay and Stripe had decided to abandon the Libra Project due to the questioning from several economic regulators, as mentioned by hacking course experts.  

Through the Libra Association, an entity that Facebook established to manage any matter related to the project, the social network stated: “We appreciate the support for the consolidation of the Libra Project; even though the structure of the project may change over time we firmly believe that we will be able to consolidate a stable and growing payment network”. The social media giant is reportedly still trying to set up its cryptocurrency project.