íàçâàíèå

Telegram’s Cryptocurrency Could Be Worth $200 Billion, but is the ICO Overpriced?

Telegram’s Cryptocurrency Could Be Worth $200 Billion, but is the ICO Overpriced?

Telegram’s much-anticipated cryptocurrency could achieve a $200 billion market cap in five years, but a respected analyst said that the firm’s initial coin offering (ICO) is still probably overvalued.

Reports on Telegram’s goal for the ICO have varied wildly. Some have placed the figure as high as $2.6 billion, but all reports agree it will likely shatter the token sale record.

Aaron Brown, a former managing director at quantitative investment firm AQR Capital Management — told Bloomberg that Gram, the native token of the Telegram Open Network (TON), could achieve a $200 billion market cap in as little as five years, netting ICO investors significant profits.

However, the stars must align for investors to see that windfall.

Brown anticipates that 300 million people will be using cryptocurrencies in five years — raising their aggregate market cap to $5 trillion — and that Telegram could attract four percent of them to its platform.

Assuming that Telegram’s platforms sees a similar ratio of transaction balances to annual revenue as the now-defunct dark web marketplace Silk Road (one-sixth), Gram’s market cap will reach $200 billion. This, though, would require users to average $100,000 of annual value exchange, an eye-popping figure given current cryptocurrency transaction volumes.

Brown said that, according to his best estimates, Gram should launch with a $1 billion valuation (the article does not make clear whether this figure refers to the cryptocurrency as a whole or just the tokens distributed through the ICO).

$1 billion is still an impressive mark for a cryptocurrency to reach at launch, but it nevertheless indicates that investors — mesmerized either by the token sale’s notoriety or the claims that Telegram makes in the TON whitepaper — are perhaps paying a significant premium for access to the ICO.

Featured image from Shutterstock.

19.03.2018 / 14:14 33
Major $3 Billion Discount Airline AirAsia Mulls ICO Major $3 Billion Discount Airline
Discount airline AirAsia is mulling an initial coin offering (ICO) to help finance its expansion into the financial services industry. $3 Billion
Chat App Giant Telegram Bans Sanctioned Individuals, Territories From ICO – Report Chat App Giant Telegram Bans Sanctioned
Telegram has blocked sanctioned individuals, their relatives and residents of four countries from investing in its ICO, local sources report. Persons
Hedge Fund Billionaire Alan Howard Makes ‘Sizable’ Bet on Cryptocurrency Hedge Fund Billionaire Alan Howard
Hedge fund billionaire Alan Howard is betting big on cryptocurrency. Billionaire Alan Howard Makes ‘Sizable’ Bet on Cryptocurrency Citing people
Telegram on Track to Pocket Over $2 Billion From ICO Rounds, Despite SEC Prying Into the Funding Method Telegram on Track to Pocket Over $2
Despite only running for four months, global messaging giant Telegram’s initial coin offering (ICO) is already on track to bring in one billion
8 Ways Telegram Thinks Its Own ICO Could Go Wrong 8 Ways Telegram Thinks Its Own ICO
If Telegram's ambitious blockchain project fails, investors can't say they weren't warned. Along with the white paper and technical documents,
Comments (0)
Add a comment
Comment on