The Telegram ICO has been garnering a lot of headlines every since it was announced and in a development that indicates how popular the ICO is, Kleiner Perkins Caufield & Byers, Benchmark and Sequoia Capital have committed millions to the Telegram pre-ICO.
According to a report on the Financial Times, all the three VCs have committed $20 million indicating that ICO could have been oversubscribed.
The year 2017 has been the year of ICOs with blockchain and cryptocurrency startups raising approximately $4 billion in all of 2017. The largest of those deals was data-storage startup Filecoin, which raised $257 million. Meanwhile, Canadian messaging app for teens, Kin, raised about $100 million in its ICO, and it excluded local investors from the deal amid unclear regulation.
Telegram ICO is being pegged as the largest ICO of 2018 with some reports indicating that Telegram is targeting $600 million in this private fundraising round, in which big investors are getting a discounted price to the crowdsale of the same size that’s planned for March.
Dubai-based Telegram has something that other ICOs lack – a userbase close to 200 million. This user traction removes a great deal of the speculation and risk that is tied to many of the unproven business models that similarly seek to launch token sales. Not that there isn’t any risk. Telegram plans to develop its own blockchain, dubbed TON, on which a marketplace of sorts where business owners and Telegram’s users will exist, all fueled by the TON token. That platform won’t see the light of day till 2019.