Posted 2 years ago | by Ben Armstrong
Telegram Ignores SEC, Releases TON Network Wallet
Telegram just launched its wallet, even though the US SEC is in the middle of taking legal action over the company's TON token.
If this all sounds a little complex, you are totally on the right page. Telegram is one of the world's most popular messaging apps (outside of the great firewall of China), and it is taking its business to the next level with the TON network.
There is one small problem...Telegram has the infrastructure and user base to actually do what Facebook under Zuckerberg is attempting to do with the Libra project. While Libra has hit roadblocks in many areas, the TON network is going full speed ahead, even with the SEC breathing down its neck.
The TON network is also open source, which makes it a viable option for the crypto community, which generally isn't a big fan of centralized control structures. All of this adds up to a network that could spread like wildfire, and offer a realistic challenge to fiat currency.
TON is a Open Platform, Regulators May Not Like it
The TON network is something along the lines of Facebook's Libra, with the exception of all the centralized mess that Zuckerberg decided to bake into Libra's platform.
Instead, the TON network will allow its users to send and receive tokens, and store them in a secure wallet that interfaces seamlessly with Telegram. It is also open source, and can be used with Ethereum's smart-contracts.
Unfortunately, the US Securities and Exchange Commission (SEC), decided that a pre-sale of TON tokens earlier this year constituted an issuance of securities, which wasn't undertaken in accordance with US laws. Nevermind the fact that the company is based in Switzerland, the US regulators are here to help!
An Actual Challenger to 'Real' Money
Libra has been challenged by the fact the Facebook is a major US company, and Zuckerberg et al. decided to create a centralized digital payments system, with a thin 'crypto' veneer that was probably designed to entice people who have no idea why cryptos are a monetary revolution.
Telegram clearly understands why cryptos are great, and made the TON network an outgrowth of the original ideas that lit fire to Bitcoin 11 years ago.
The real problem for regulators is that TON is out in the open, and they are left in the same position they have been in since day one with cryptos. Shutting down a decentralized network is extremely difficult (tokens are illegal in China, yet, China has some of the biggest BTC mining operations in the world) and top-down enforcement actions don't work with decentralized systems.
With a messaging system like Telegram, and its 300 million strong user base as a first-generation of clients, the TON network is in a position to challenge the fiat banking cartel in a way it (the cartel) doesn't fully understand at the moment.