Before Facebook decided to launch the Facebook Libra project, it had not been supportive of cryptocurrencies. The platform had even banned the advertising of crypto projects on its platform. This is also the case for Twitter, which has heavily restricted advertisements regarding crypto.
This caused those creating crypto projects to turn elsewhere. One of the most popular platforms for advertising crypto projects is Telegram. Thus far, the platform has been supportive of the crypto industry and it does not appear this stance will change anytime soon. The founder of Telegram even launched a native crypto token for the platform. In the Telegram GRAM token ICO, the platform managed to raise a whopping $1.7 billion.
Why Telegram is So Popular with ICOs
Despite being targeted by Russia, the platform is today the most important social media platform for ICOs seeking to market themselves. One of the reasons why it is so popular is due to how easy it is to use. Kickstarter also allows ICOs but it is much more complex for crypto enthusiasts to take part in projects.
Telegram makes it easy for ICOs to spread the word about their project as well as providing updates regarding the progress of the project. A recent study estimated that the membership per Telegram channel for ICOs is around 13,000 people while the median figure is around 8,600 people. Telegram’s global nature has made it attractive to ICOs, which are usually seeking to attract funding from an international audience.
Its list of features has also helped to make Telegram popular with ICOs. This makes it easy to access news, messages and much more. Besides that, the fact that its system does not require you to have a phone number linked to it makes it more convenient to use compared to platforms like WhatsApp.
Will its Popularity Last?
One reason why ICOs are so easy to invest in is because they are not tied to any regulator. However, this has also attracted scammers into the ICO space. In fact, it is estimated that about 8 out of 10 ICOs are scams. This has led to government crackdowns on this space.
In the future, this could create huge problems for Telegram. One regulator that has come down hard on ICOs is the SEC. It has warned all investors that most ICOs are mere scams that will walk away with their funds. Besides that, the SEC has sued numerous people in court and forced them to pay huge fines.
The SEC has been particularly harsh on securities tokens trying to pass as utility tokens. Most crypto projects that do this are attempting to escape the regulation governing the issuance of securities. One of the requirements is that only accredited investors can take part in securities sales.
In fact, this issue had, at one time, forced Telegram to shut down the launch of its GRAM token. Given how important Telegram has become to the ICO market, it is likely that authorities might start to go after it sometime in the future.
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