THELOGICALINDIAN - Names of VC investors accept appear to light
Recent developments in Telegram’s acknowledged action accept appear the names of investors who alternate in the company’s multi-billion dollar badge auction in 2018, as aboriginal reported by CoinDesk on Jan. 27.
Most notably, statements during the degradation of Telegram CEO Paval Durov appear that Mickey Malka of Ribbit Capital was an aboriginal investor. Malka is best accepted aural the cryptocurrency industry for his role in the now-defunct Bitcoin Foundation.
A abstracted certificate indicates that the adventure backer David Yang took allotment in the auction as well. Yang is a affiliate of the Band of Angels, a Silicon Valley-based group.
Additionally, several VC firms, including Kleiner Perkins, Fortress Investment Group, Draper Dragon, Dragoneer, DRW Holdings, and Redpoint invested in the project.
Why It Matters
These developments are aftereffect of a regulatory complaint that the U.S. Securities and Exchange Commission (SEC) filed adjoin Telegram in backward 2019.
Much of the SEC’s case revolves about the catechism of whether Telegram ran its badge auction in adjustment to armamentarium the development of its blockchain. If the aggregation ran its auction to accession funds for added accepted purposes, it may accept abandoned balance regulations.
As such, the names of Telegram’s investors are a assurance that Telegram is committed to its blockchain project. For example, Durov accent Malka’s blockchain acquaintance as affirmation that investors were in a position to accomplish abounding use of Telegram’s token:
It was accessible that assertive investors [such as Micky Malka] accept acquaintance in these processes of validation or at atomic were carefully affiliated with parties that had acquaintance in such processes.
Individuals affiliated to the VC firms listed aloft submitted their own affidavit as well. Their statements assume to accurate accepted trading-related affidavit for purchasing Telegram’s token, so it is not bright if those statements will advice Telegram.
Just One Angle
The catechism of whether Telegram has appropriately invested its funds in blockchain development is an important one, but it is not the alone amount at hand.
Some accept argued that the SEC is acting too harshly. In a contempo amicus brief, the Blockchain Association argued that Telegram’s badge auction was a arrangement amid “sophisticated clandestine parties,” and that the SEC’s crackdown has done causeless harm.
In added words, because Telegram did not advertise tokens to the public, the SEC may not be justified in attempting to accomplish regulations advised to assure the public. Raising advance abreast from wealthy, accepted investors, for example, is permissible beneath the “Regulation D” exemption.
However, Telegram has already absitively to accomplish major changes to its blockchain in acknowledgment to the SEC’s actions. This suggests that Telegram’s blockchain activity is in an ambiguous position in animosity of the progress it has fabricated back 2018.
