Durov Brothers Raise $850 Million in ICO for Telegram's Blockchain Development

Big Bucks for Blockchain

Pavel and Nikolai Durov have struck gold, raising a staggering $850 million in their second round of initial coin offering (ICO). This impressive haul aims to fuel the development of the increasingly popular Telegram messenger app and its very own Blockchain platform, the Telegraph Open Network. The announcement came through a notice signed with the US Securities and Exchange Commission (SEC), revealing the keen interest of investors.

Investor Confidentiality

While the document keeps the identities of the investors under wraps, it highlights that 94 distinct entities hopped onboard this digital money train that kicked off on March 14. Instead of a fancy cocktail party, it seems this ICO was all about “Purchase Agreements for Cryptocurrency,” appealing directly to accredited investors seeking to dive into the crypto world.

Federal Exemption—What’s the Catch?

The offering operates under Federal Exemption 506(c), which allows companies to shout about their offerings from the rooftops so long as they keep two critical rules in check:

All investors must be accredited.
Companies must verify the accreditation of these investors.

This layer of scrutiny ensures that only the crème de la crème of investors get their chance to participate, somewhat like an exclusive nightclub where the bouncers check your ID—and your bank balance, too!

A Glimpse into the First Round

Curious about the previous offering? The first round was just as successful, pulling in $850 million from 81 investors between January 29 and February 13. Notably, Russian billionaire Roman Abramovich was rumored to have invested around $300 million. However, his spokesperson took the route of silence, denying the hefty sum.

Regulatory Challenges Ahead

The current framework governing ICOs stems from legislation formulated in the 1930s, which seems as outdated as a flip phone in today’s smartphone era. Experts suggest that for ICOs to thrive, regulations must adapt. As one seasoned analyst remarked, “It’s time to upgrade these regulations and usher them into the modern era of tech innovation—because what’s more attractive than some good ol’ transparency and clarity for potential investors?”