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The Gram token investors voted against refund and are willing to wait until the next SEC hearing in February 2020.
During the testing times for messaging giant Telegram, the investors of Gram tokens have decided to stand behind the company. As per the earlier plan, Telegram was all set to launch its Telegram Open Network (TON) Blockchain along with its native cryptocurrency.
Telegram announced that soon after the launch, its investors who participated in Gram token sale year can sell them in open markets. However, in the last-minute restraining order, the U.S. SEC decided not to allow Telegram its Gram token sale. The SEC argued that Telegram has not followed the regulatory rules of token issuance and that the Gram tokens qualify as securities.
Now, this meant that the investors need to wait more time to offload their Gram token holdings. To keep its promised word, Telegram appealed against the SEC’s injunction. However, things haven’t moved in favor of the company as Telegram had to postpone the TON launch by six months in early 2020.
As a result, Telegram sent its investors to either wait or return 77% of the investors’ funds. Wednesday, October 23, was the last deadline for investors to chose whether they want to stay in Telegram. However, in a vote of confidence for the messaging giant, the TON investors have decided against the return of their funds, reported Forbes Russia.
This clearly shows that there still strong momentum behind the project despite the SEC crackdown.
Positive Development for TON
Telegram has written to its investors that the rescheduling of the SEC hearing to February 2020 is, in fact, a positive development for the company. It said:
“Telegram views this development as a positive step towards resolving this matter through the court system in an expeditious manner, and we and our advisers will be using the time to ensure that Telegram’s position is presented and supported as strongly as possible at the February hearing.”
Further in the letter, Telegram tells is investors that mistaken classified Gram tokens as securities. The postponement of the court hearing will give Telegram some more time to argue on its case of Gram token classification.
“In the February hearing Telegram anticipates asking the court to rule on the core argument that Grams are not securities. The October 24 hearing, in contrast, was only to consider whether a delay should have been mandated, without conclusively resolving the core argument”, wrote the company.