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Crypto Industry’s Favorite Messaging App Telegram Surpasses 500 Million Active Users

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Crypto Industry's Favorite Messaging App Telegram Surpasses 500 Million Active Users

Telegram, a popular messaging app within the cryptocurrency space, surpassed 500 million monthly active users during the first week of January, according to Telegram chief executive officer Pavel Durov.

In the last 72 hours, said Durov, the app has seen a massive surge in new users, with an additional 25 million people signing up to use the platform. These new users are coming from all around the world, with the majority – 38% – drawn from Asia.

Some 27% are coming from Europe, 21% from Latin America, and 8% from the Middle East and North Africa (Mena region). Around 200 million people used Telegram in 2018, meaning user growth has exceeded 150% over two years.

Telegram may have benefited from changes to the privacy policy at rival Whatsapp. Recent updates to Whatsapp’s privacy policy require that users share their personal information with parent firm Facebook or stop using the service altogether.

These changes are believed to have prompted users uncomfortable with sharing more of their personal data with Facebook to leave Whatsapp, and join privacy-centric competitors such as Telegram or Signal.

Unlike other competing messaging apps, Telegram does not share personal data and offers encrypted chats.

Posting on his personal Telegram channel on Jan. 12, Durov said:

People no longer want to exchange their privacy for free services. They no longer want to be held hostage by tech monopolies that seem to think they can get away with anything as long as their apps have a critical mass of users.

The Telegram CEO added that “with half a billion active users and accelerating growth, Telegram has become the largest refuge for those seeking a communication platform committed to privacy and security.”

In 2020, Telegram reported new user sign-ups of 1.5 million each day, a far cry from the current influx of people joining the platform. “We’ve had surges of downloads before, throughout our 7-year history of protecting user privacy. But this time is different,” noted Durov.

Until now, all services on Telegram have remained free. However, Durov announced in December that some services may now be monetized. He said additional functions will appear for “business teams and users with advanced needs” and those features will be paid because they are “resource-intensive”. Ordinary users will continue to use Telegram for free, he emphasized.

Telegram attempted to launch its own cryptocurrency called Gram, through the TON blockchain platform, but was blocked by the U.S. Securities and Exchange Commission. That left Pavel Durov, who had raised $1.7 billion from select investors for the project, saddled with a debt of $1.2 billion and $18.5 million in penalties.

Now some investors in TON are preparing a lawsuit against Durov to try and force the businessman “to sell part of Telegram or the entire company and pay off the investors, because he spent money on Telegram,” according to a Forbes report. Durov allegedly spent $500 million of the TON money to upgrade Telegram, something investors claim was not part of the original deal.

What do you think about the influx of new users at Telegram? Let us know in the comments section below.

Ripple Is Selling 33% of Its Stake in Moneygram

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Ripple Is Selling 33% of Its Stake in Moneygram

Ripple Labs Inc. is selling 4 million of its shares in Moneygram, or about a third of its total shareholding in the company.

The decision seems in part to be motivated by the surging Moneygram share price and Ripple’s desire to cash out after buying the shares at a premium of $4.10 in 2019.

At close on Nov. 27, shares of Moneygram were down 4.8% at $7.42 on the Nasdaq Stock Exchange. However, the stock has soared 260% year-to-date, rising from $2.06 on Jan. 2.

Ripple will earn nearly $30 million if it sold its 4 million Moneygram shares at current market prices – an almost 50% gain. However, the sale is still in process.

A Ripple spokesperson was quoted by industry publications as saying, “this is purely a judicious financial decision to realize some gains on Ripple’s Moneygram International investment…” The spokesperson added that the sale “is in no way a reflection of the current state of our partnership.”

According to a U.S. Securities and Exchange Commission filing on Nov. 27, Ripple owns an 8.6% equity stake in the global remittance behemoth Moneygram. That’s the equivalent of 6.24 million shares.

Ripple, the issuer of the eponymous XRP cryptocurrency, has the option to buy an additional 5.96 million shares under a warrant. If exercised, that option would bring Ripple’s total shareholding to 12.2 million shares or about 17% of Moneygram’s shares outstanding.

Ripple has now put up the 4 million shares for sale. The shares represent about a third of its entire stake in Moneygram when the warrant shares are included. Excluding those, Ripple will still own 2.24 million shares or 3.1% of Moneygram’s shares outstanding. Counting in the additional warrant shares, that would rise to an 11% stake.

“We will remain a significant shareholder in Moneygram following the sale,” asserted the Ripple spokesperson, adding that “in just over a year, we’ve made incredible progress and look forward to continuing to work alongside Moneygram to transform cross-border payments.”

Ripple completed a $50 million investment in Moneygram in November 2019, in what was touted by the two entities as a strategic partnership. At a premium price of $4.10 per share at the time of the purchase, the $50 million investment adds up to exactly 12.2 million shares – the total number of shares Ripple holds in Moneygram, inclusive of the additional warrant shares.

Moneygram uses Ripple’s XRP-based settlement network, the On-Demand Liquidity (ODL) network, to facilitate remittances in Australia, Europe, and the Philippines.

What do you think about Ripple selling its Moneygram stake? Share your thoughts in the comments section below.

The post Ripple Is Selling 33% of Its Stake in Moneygram appeared first on Bitcoin News.

SEC Looking to Buy a Blockchain Forensics Tool That Analyzes Smart Contracts

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The U.S. Securities and Exchange Commission (SEC) is looking for a blockchain forensics tool to help it analyze smart contracts.

In a call for bids to software companies on July 30, the regulator said that the tool must be able to “analyze and detail code within blockchains and other distributed ledgers.”

It is also looking to identify contract changes performed with administrator passwords, in addition to issues like whitelisted and blacklisted addresses. It also wants to know how token sales funds are disbursed.

The SEC noted that the tool would support its efforts “to monitor risk, improve compliance, and inform Commission policy with regard to digital assets.”

Firms have until August 13 to submit their proposals. Only companies classified as “small businesses” – those with a value of $30 million or under – are being considered for the tender, it said.

SEC’s desired analysis tool gives it ability to track the movement of crypto transactions more closely, particularly those contracts in the multi-billion-dollar decentralized finance (Defi) industry.

The Commission, which recently awarded a contract to blockchain analytics firm Ciphertrace for its crypto-tracking capabilities, is obviously aiming at becoming a better player in a digital asset industry where it has always been on the backfoot.

According to a notice published in July, the Ciphertrace deal is limited to blockchain forensics and intelligence targeting Binance’s native coin BNB and all the tokens on the Binance network.

The SEC has had running battles with several crypto companies that include Telegram. Initial coin offerings (ICOs) have also proved to be a sore point for the regulator.

What do you think about the SEC’s plans to tightly monitor crypto transactions? Let us know in the comments section below.

The post SEC Looking to Buy a Blockchain Forensics Tool That Analyzes Smart Contracts appeared first on Bitcoin News.

Wilshire Phoenix Files Publicly-Traded Bitcoin Trust to Challenge Grayscale’s $3.4 Billion Dominance

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Wilshire Phoenix has filed to launch a publicly-traded trust called Bitcoin Commodity Trust (BCT) – putting the firm in direct competition with Grayscale Investments’ $3.4 billion bitcoin trust (GBTC).

According to the June 12 filing with the U.S. Securities and Exchange Commission (SEC), the New York-based investment company will offer up to 80,000 shares at a maximum $25 per share.

Wilshire Phoenix, which has had an exchange-traded fund (ETF) application rejected by SEC in the past, aims to raise $2 million from the sale, which “will be used to purchase bitcoin (BTC).”

An unnamed company spokesperson is, however, quoted elsewhere suggesting the actual number of shares to be sold is yet to be finalized.

“The shares will provide investors with exposure to bitcoin in a manner that is accessible and cost-efficient without the uncertain and often complex requirements relating to acquiring or holding bitcoin,” said the firm.

The filing notes that the trust “will have no assets other than bitcoin”, although it “may hold U.S. dollars for short periods of time” for buying and selling of BTC, fees and payment of redemptions.

Bitcoin custody will be with Fidelity Digital Asset Securities and dollars will be held by Umb Bank. As per the filing, bitcoin held will only be insured against theft above $100 million, while cash is covered under the Federal Deposit Insurance Corporation.

If approved, Wilshire Phoenix’s BCT could place it in competition with Grayscale Investments Bitcoin Trust (GBTC), which has 365,000 BTC worth $3.35 billion, at current market prices, under management.

The Bitcoin Commodity Trust proposes management fees of only 0.9% per year compared to GBTC’s 2%. And while Wilshire’s shares are redeemable, this option is not available for investors of Grayscale, which states on its website that it “does not currently operate a redemption program and may halt creations from time to time.”

Wilshire Phoenix has previously sought approval for a bitcoin ETF that was rejected by the SEC in March. The exchange-traded fund proposed to hedge BTC against U.S. Treasury Bills. The idea was that an ETF would help retail investors gain bitcoin exposure at low-cost.

The SEC has turned down several applications for a bitcoin ETF, including Bitwise and Gemini proposals, leaving no local option for U.S. based investors.

However, Sweden’s Bitcoin One Tracker, an exchange-traded note, provides U.S. investors with a chance to trade BTC-based instruments. The security has been trading on the Nasdaq Stockholm exchange since 2015 and offers quotes in U.S. dollars.

In the Wilshire Phoenix filing, the company says each BCT share represents bitcoin ownership. The shares will be “quoted on Otc Markets Group, Inc.’s Otcox Best Marketplace.”

What do you think about the Wilshire Phoenix publicly traded bitcoin fund? Let us know in the comments section below.

The post Wilshire Phoenix Files Publicly-Traded Bitcoin Trust to Challenge Grayscale’s $3.4 Billion Dominance appeared first on Bitcoin News.

Telegram to Pay Back Investors 110% After Gram Token Launch Fails – Again

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Telegram to Pay Back Investors 110% After Gram Token Launch Fails - Again

Telegram has offered to refund investors after its scheduled release of the Gram token failed – again – due to regulatory complications. Investors will immediately receive 72% of their stakes, as first option, or 110% if they choose to wait another year. The second option may be paid in another cryptocurrency in the Telegram messaging application, with an additional 10% bonus.

The social network raised $1.7 billion in an ICO in 2018, promising investors the token Gram in return. Telegram made legal undertakings that it would deliver the cryptocurrency to investors initially by Oct. 31, 2019, or give back the money. The latest deadline for the launch of the Telegram Open Network (TON), the decentralized network supporting Gram, is today, April 30.

But in the period since its fund-raising, the company has faced serious legal challenges. The U.S Securities and Exchange Commission (SEC) wants the Gram project stopped because of alleged illegal activity by the Telegram development team.

Now, in a letter to TON investors posted on a Russian platform, Telegram stated that: “Unfortunately, in light of the recent U.S district court decision, we are unable to issue Grams to you by the 30 April deadline date.” The court decision prevents the company from issuing its promised digital asset or launching the underlying TON network until the dispute is resolved.

In the second repayment option, Telegram proposes to pay investors more, either in cash, stock or a different cryptocurrency, if they agree to “loan” their existing stake to the company until around this time next year. It said:

As a token of gratitude for your trust in TON, we are also offering you an alternative option to receive 110% of your original investment by April 30, 2021, which is 53% higher than the Termination Amount.

Investors have until the end of this week to choose a refund plan of their liking.

The Telegram app makes it easy to send encrypted messages between phones. More than 400 million people around the world use the messaging service every month, and at least 1.5 million people join the platform each day, the company says. The Grams are intended to make it possible to buy and sell goods on Telegram.

What do you think about the chances of Telegram’s token in light of the legal challenges? Let us know in the comments section below.

The post Telegram to Pay Back Investors 110% After Gram Token Launch Fails – Again appeared first on Bitcoin News.