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As the launch of Facebook Libra looms, another social networking company has decided it’s finally the time to launch its own cryptocurrency. Telegram, a messaging application known for its speed and security, will try to beat Facebook to the punch with a roll out of its long-awaited Gram cryptocurrency.
Apart from the digital coin, Telegram is also aiming towards launching its own digital wallet for its 200 to 300 million users.
Following in the footsteps of Facebook’ Libra, Telegram expects its digital currency to become the next big thing in the world of cryptocurrency, and revolutionize the way virtual money is transferred around the globe.
Unlike Facebook, however, Telegram did not reveal its full plan with its move to join the realms of digital currency before it had anything to show. The company kept most of its plans undercover to reduce the interference of government agencies. This is an app that, in fact, has much less regard for government authorities, and its use in the recent Hong Kong protests being one of the examples.
Unlike Libra, which is backed by traditional financial assets, offering a stable price of the currency, Gram will operate more like Bitcoin(BTC)trade. It has no backing of any other currency or asset, making it as potentially volatile as Bitcoin. Initially, Gram digital coins will be used to buy and sell stuff on Telegram Open Network (TON) which is also in development.
During its sales pitch, Telegram stated that it would follow a formula very similar to Bitcoin and would operate on a decentralized structure. Just like Bitcoin, this will ensure that the government cannot meddle in the operations of the virtual currency. Once the virtual currency is launched, this structure will lead to Telegram having no control over the use of the digital currency or over its value, which has undoubtedly raised some security concerns among investors.
These security concerns led to a lot of firms refusing to invest in Gram. However, some giant firms such as American venture capital firms Benchmark and Lightspeed Capital, and many Russian investors came through for the currency and agreed to invest in it. There has been a total investment of almost $1.7 billion by these investors in the future of Gram.
Right now Telegram has a lot of ambitions and ideas that it wants to implement once Gram takes off. However, for that implementation to happen, the company would have to face the critics and hesitant users. Some say that Telegram will not be able to meet the deadline of 2 months for the launch and some say that the security concerns associated with Gram will lead to the public not accepting it. All these questions will be answered within 2 months.