Telegram wants to build a system with a cryptocurrency called Gram. It will have faster transaction speeds than Ethereum and Bitcoin and possibly be competing with Visa and Mastercard.
Telegram Group Inc. has raised $1.7 billion according to a regulatory filing, to see it build its own cryptocurrency. The company raised $850 million in February and this month it raised $850 million from 94 investors.
Further, the company may pursue one or more subsequent offerings according to the filing made to the U.S. Securities and Exchange Commission on Thursday.
The company will use the proceeds to develop a Telegram Open Network blockchain system with a crypto called Gram. It targets to increase transaction speeds more than Ethereum and Bitcoin and may seek to compete with Visa Inc. and Mastercard Inc. and that’s a tall order given the last two process thousands of transactions in a second.
The company said it was a success to raise the amount given the drop in Bitcoin prices which made investors more cautious with cryptocurrencies.
It surpassed a threshold of 200 million monthly active users and over 700,000 new users signed up each day. However, interruptions in its data center provider caused connection failures in Europe and former the Soviet Union on Thursday.
However, the company faced a threat of closure after failing to provide encryption keys to the Federal Security Service in Russia in order to comply with legislation on fighting terrorism.
The Supreme Court in the country rejected company to appeal against the request by the service.