Telegram to bring cryptocurrency 'Gram' soon

Telegram to bring cryptocurrency 'Gram' soon

In 2017, Social media messenger app-maker Telegram had announced to bring its own cryptocurrency Gram. It had even raised close to $1.7 billion from investors and was supposed to launch ICO (Initial Coin Offering) in mid-2018 but backed out for reasons unknown. Now, reports are coming in that it's happening before the end of October 2019.

The company plans to bring digital Gram wallet for its 200 million-plus app users in a couple of months for cryptocurrency transaction, The New York Times reported citing Telegram investors.

It is said that Telegram has to launch the Gram by October 31 or else it will lose $1.7 billion worth investments, which was raised in 2018.

Also, even if it does manage to bring Gram, there is a lot of uncertainty over how it will be received by the consumers as most cryptocurrencies are volatile to global markets.

Facebook's Libra is said to be stable, as each coin generated will be matched by real-world assets such as bank deposits, government securities in currencies including Dollar, Sterling Pound,  Euro and others from global reputable and stable financial institutions.

Read more | Key facts about Facebook's Libra cryptocurrency

But, Gram doesn't offer such safety net and its value will be vulnerable to wild swings similar to Bitcoins. For instance, Bitcoins had managed to peak in late December 2017 up to $19,783, crashed down by 45-percent in a few days, going below $11,000 per Bitcoin unit. 

Read more: Key facts about Facebook Calibra wallet

So, government-run regulatory agencies are sure to scrutinise Gram cryptocurrency, as they are doing with Facebook's Libra, which is slated to debut in 2020.

Back home, Reserve Bank of India (RBI) has imposed a ban on all forms of cryptocurrency transaction in the country. 

Given the circumstances, Telegram is unlikely to have smooth sailing with the Gram.

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