Let’s deal with the concepts of Gram and TON. Gram is the Telegram cryptocurrency, and TON is the blockchain platform (short for Telegram Open Network), on the basis of which the token will work. Pavel Durov had held two closed rounds of the Telegram ICO and raised $ 1.7 billion in 2018. It caused a great interest in the crypto industry and among messenger users. After that, the Telegram team began developing the TON blockchain. It should be noted right away that you cannot buy Gram at the moment – coins are not officially sold anywhere, even on cryptocurrency exchanges, since the main network of the TON project has not yet been launched. Presumably, this will be done on April 30, 2020. Any offers to buy a real Gram right now are fraud.
Now there is not a single person who owns tokens. Investors participating in the closed Telegram ICO have only legal obligations from the Telegram team to receive tokens after the launch of the blockchain platform.
However, there is good news. Since demand for purchase Durov’s cryptocurrency is great, it became possible to buy Gram futures before the release of real coins. This is a common mechanism in the financial markets in case of the upcoming release of a hyped product. You need to figure out what this tool is to understand how risky it is to buy such futures.
Futures is a contract that implies that on the date agreed with the seller, he will sell this product to you at a predetermined price. If the price of this product is up by that time, you will earn, but if it falls, you will lose some of your money. This is the idea of any futures. For example, you sign a contract with the owner of a coin that you will be able to buy Gram in 3 months at a price of $1. In case the price rises to $3 by that time, you can earn $2 on such a transaction by selling the token to someone else.
You can buy TON coins before the release of the blockchain platform with the least risk only through similar interlayer tools.
1. Deliverable or non-deliverable. Deliverable futures means the delivery of real goods to you by the time the contract is executed, in our case, it is TON cryptocurrency. In the case of a non-delivery option, the supplier only compensates you the difference between the initial futures price and the real value of the goods on the day the contract is executed. For example, you bought futures for $2, and at the time of release, the coin costs $4. This means that the exchange must pay you another $2 for each Gram futures in your account. But if the Gram token costs $1 when it gets to the exchange, you will lose 50% of your purchase.
2. Traded or non-traded. Futures are considered traded if it can be resold to other people after the collection of initial bids. This means that you can resell it to another participant immediately after your purchase from the crypto-exchange. The price will change until the release of real Gram depending on the news on the development progress, or on the demand for futures on this exchange.
The first cryptocurrency exchange that launched futures contracts for Gram is Liquid. Grams should be provided at the time of the launch of TON by Gram Asia, which supposedly participated in the closed ICO of Telegram Open Network. After Liquid’s successful experience in selling Gram futures, other crypto exchanges pulled up with various options for how to buy TON tokens. Exchanges CoinEx and Bitforex have implemented the same scheme. By the way, you can find out the current price for futures without leaving the Telegram application in Tonometer bot.
The review of futures contracts will be incomplete if we do not pay attention to the pitfalls of this instrument.
1. There is no complete certainty that potential Gram suppliers, such as Gram Asia, actually have an investor agreement with Telegram. Exchanges insure their customers against fraud by the fact that the Gram suppliers will receive money only after they provides these Grams to the cryptocurrency exchange. But in case they do not, your money will simply be returned to you. Which is also not very pleasant, since in fact you will freeze part of your funds for a long time.
2. Now about 10 crypto exchanges are trading Gram futures or something that they call Gram. To understand which one to choose for purchase, you need to estimate a number of parameters: When did the stock exchange start to work (not a one-day company)? Is there an imitation of trading volume? What are the terms of the futures contract?
We will not bother you with an analysis of 10 exchanges, we will talk about two that cause some trust, and list their conditions:
It should be noted that the purchase of Gram futures is an extremely risky business. If you really want to do this, then buy them for an amount not more than the amount that you do not mind losing. Since this investment has many uncertainties. You must independently evaluate the risks of the purchase and understand what you are buying.
The main complaint against all the cryptocurrency exchanges that launched the sale of Gram is the overestimated volume of futures trading. Therefore, we advise you not to make purchases for large amounts on these exchanges. It is best to wait for the launch of real coins on sale.
You may ask: «I can’t understand why I need such intermediaries if Telegram want to embed a currency in an application?»
It’s simple: only the wallet will be built into the application. It supports only the functions of sending and receiving coins. The functionality of acquiring Gram for fiat (real) money via credit card isn’t present in this wallet.
Currently not a single payment system that works with bank cards has issued any announcements that it will support the ability to buy Telegram cryptocurrency. Therefore, there remains only the option of buying through crypto-exchanges. From the available news we can conclude that it will be Binance and Coinbase.
It should also be noted that Binance, which is the largest exchange in the world in terms of trading volume of cryptocurrency, has released a comprehensive TON blockchain review. This is a good sign since Binance wouldn’t do such a detailed analysis of the project, which it doesn’t plan to place. So, the coins will appear on it at the start of the sale of Gram with almost 100% probability. By the way, Binance wasn’t noticed in the increase of trading volumes, therefore, it causes the greatest trust.
So it turns out that there remains only the option of acquiring coins through this cryptocurrency exchange for a quick purchase on the day sales begin. If you want to be one of the first who will be able to buy Gram at the start of sales, we recommend you to register on Binance in advance. And also go through all the necessary verification procedures (mail and phone number) immediately.
1. Binance believes that a large number of users is the main advantage of the Telegram blockchain. This is what other crypto projects lack to create real demand for their cryptocurrencies. Binance estimates Telegram audience at 500 million people.
2. According to Binance, the weak point of the platform is the lack of a community of third-party developers outside of Russia. And one more weakness is a rather small team of TON developers (only 15 people, and another 8 third-party developers). In addition, the desire to develop own cryptography protocols is not a good practice in this industry. The TON team is just trying to develop everything from scratch, and at the same time, they have not yet published the source codes of their protocols. The opaque developing of decentralized systems is bad practice.
3. Binance believes that if TON can implement the functionality specified in Whitepaper, then it will become a unique project that will overtake all competitors by a couple of years and will be able to create a new decentralized Internet.
4. The review also compares the Telegram blockchain platform and the Facebook crypto project Libra. TON has a clear advantage for investors: the Durov’s cryptocurrency rate will be floating, unlike Libra cryptocurrency, which doesn’t imply large price fluctuations and is planned solely for payments, not as an investment asset. In addition, Facebook is currently lagging behind in the pace of the project. This gives Telegram a head start to become the first in the niche of a large international social network/messenger with cryptocurrency.
You can read more about this review in the post of Telegram channel «Give me Gram!».
We remind you that the real Gram is not traded anywhere until April 30, 2020. You cannot buy it until April 30, including on Binance. We only assume that they will appear there immediately at the start of the sale of TON coins, and early registration will help you to be one of the first buyers. Currently, only Gram futures are available for purchase.
Almost everyone wants to know: how much will the price of Gram rise after the launch of TON?
Let’s try to figure it out. We need to estimate the current situation to find out the growth prospects of Gram:
1. Telegram held two rounds of closed ICOs in early 2018. Tokens sold at $0.37 in the first round, and at $1.33 in the second round. The reason for the price difference is the formula for receiving Grams by investors of the first round: in parts of 25% for one and a half years after the release. They got a big discount, but at the same time, they have a restriction on receiving coins.
This means that they won’t be able to get rid of all their coins on the first day of Gram sale, but only of a quarter. This will protect the coin from the collapse of quotations on the first day.
2. Many investors decided to sell their not yet received Grams using futures contracts due to the fact that the TON team delayed the launch of the project by more than a year – despite the fact that it is prohibited by the Investor Agreement. There is information that investors didn’t do this at their discretion, but by agreement with Durov and the Telegram team, as compensation for delaying the development time.
As a result, individuals (small investors) actually got access to Gram. Thus, Gram actually appeared on the market. What is the price of futures? In the case of the Liquid exchange, they were sold at $4. This gave a profit of 1000% to the primary investors (or 600% in terms of profit per year).
It is important to note that Liquid no longer trades Gram futures, they are frozen pending the release of TON. In turn, futures contracts on Bitforex were sold at $2.7 a piece, and are still being traded. Price is constantly fluctuating. Coin sales of the project, the implementation of which dragged on for a year, go well enough and show a big profit for the first investors.
3. Unlike Bitcoin and its mining, TON will use a different technology called Proof of Stake. It implies the delegation (in fact, freezing) of coins to one of the TON servers (they are called validators), in order to obtain a percentage on this contribution per servicing transactions in the blockchain.
This is a very attractive prospect for primary investors since it can allow them to double their coin volume in the first 3-4 months of the blockchain’s functioning, while the percentages are highest. This greatly stimulates them not to sell coins immediately, but to accumulate them. Thus, the supply of coins in the market is reducing, and the price is rising.
4. The greatest risk to the platform is government regulation. As a result of counteraction to the TON of government agencies, the price can drop significantly.
Summary: the launch of futures contracts shows that the price of TON can seriously increase at the start of sales. But the course may drop significantly after some time, as a result of the activation of hostile governments. Therefore, it makes sense to buy coins at the start of sales, and prepare for additional purchases in the course of events. Surely there will be much negative news for TON. Against the background of such news, it will be possible to get coins at a much more attractive price at those moments, with the expectation of growth in the next 1-2 years. Therefore, we recommend registering with the Binance crypto exchange in advance in order to quickly respond and buy Gram tokens.
You can use the cost monitoring services. For example, Tonometer bot great for this, which shows the current price of the Gram futures. You can monitor the price without leaving the Telegram application, it is very convenient.
Real Gram hasn’t yet been released. You will see prices of real TON coins and the impact of various news on their quotes in the Tonometer bot after the release date April 30, 2020.
Bitcoin was launched in 2008 and became the father of all cryptocurrencies. 11 years have passed since then, but no one was able to push the first cryptocurrency off the pedestal. Bitcoin currently remains the cryptocurrency with the largest capitalization and the highest cost per coin, despite the hundreds of new hype blockchain projects that have been launched during this time.
All the perturbations that took place in the world of cryptocurrencies during this time influenced the exchange rate of the first cryptocurrency. And any increase in the alternative blockchain was inevitably causing a rise in the price of Bitcoin.
This was happening for a number of reasons:
1. Bitcoin is still the main tool for depositing funds into new crypto projects. All projects are guaranteed to accept payments in Bitcoin during the ICO (BTC – exchange abbreviation of bitcoin). This inevitably increases the demand for BTC and pushes its quotes up.
2. Bitcoin’s fame goes ahead of him. When television around the world started talking about the growth of cryptocurrencies in news releases at the end of 2017, Bitcoin was chosen as a measure of the price level. Thanks to this, every TV viewer has learned that there is such a mysterious thing and it is becoming more expensive. Although at that time there were many other crypto projects that showed much greater growth and had good trading volumes. As a result, “cryptocurrencies” and “bitcoin” are synonyms for many people. And if someone wants to start using cryptocurrencies or invest in them, then the choice will certainly fall on BTC. This again leads to a jump in the BTC course with any high-profile news in the field of blockchain projects.
3. The use of bitcoin in real life. If any store, hotel or any other business makes it possible to pay with cryptocurrency, then Bitcoin is guaranteed to be used for this.
Now let’s ask ourselves: will the release of Gram affect the price of Bitcoin?
To do this, we need to understand: How does the blockchain platform plan to integrate with Bitcoin? How can we buy TON cryptocurrency? How many new cryptocurrency users will this project attract?
Let’s go through the points:
1. According to the TON Whitepaper, available on the network, the Gram wallet will integrate with other cryptocurrencies, with Bitcoin first of all. This means that owners of bitcoins will be able to make transactions in the TON network and buy goods inside it, including for bitcoin.
2. Gram will be traded on major cryptocurrency exchanges. Many of them do not allow the purchase of cryptocurrencies for fiat money, but only the exchange of one cryptocurrency for another with subsequent withdrawal to the wallet. This means that at first, you will need to purchase another cryptocurrency (most likely, Bitcoin) in order to buy TON coins on the exchange. Binance started accepting card payments recently, but on most other exchanges this is not yet possible.
3. Buying Gram for BTC guarantees anonymity, unlike purchasing with a bank card, where you will need to go through the verification of your identity (KYC). This is a critical requirement for many Telegram users.
4. There are about 40 million Bitcoin wallets currently. Amount of real users is at least two times less due to the fact that many people use several wallets at once. Telegram, in turn, has more than 300 million users. And if Pavel Durov can convince at least 10% of the Telegram audience to start using cryptocurrencies, which means using Bitcoin too, this can almost double the current BTC user base.
The above points should lead to the growth of Bitcoin, in the case of the launch of TON in full volume, promised in WhitePaper. So if you want to invest in Gram, you should also consider investing in BTC at the same time. But remember that nobody gives you trading advice. This article is just food for thought.