What is GRAM cryptocurrency?
When most people got the news that Facebook was coming up with her cryptocurrency, there was some excitement in the cryptocurrency and a lot of enthusiasts looked forward to the crypto. However, from the look of things, Facebook might have hit a wall with her plans. Telegram, another big player in the social network industry has also unveiled plans to create its digital currency.
According to reports from investors, Telegram has informed investors that the company would be sending the first batch of its coin, the Gram, in the next few months.
Apart from the coin, Telegram would also be making digital wallets for Gram available to the over 200 million users of the Telegram messaging application. According to reports, the Gram would offer users a convenient means to send and receive money from anywhere in the world.
The Gram took a significant step in reality in the early part of 2018 when Telegram raised $1.7 billion from top investors some of which are the biggest venture capital companies in Silicon Valley. Another interesting point that makes the Telegram coin closer to reality is that unlike Facebook, which made the announcement for a cryptocurrency way before creating the first token, Telegram has already done some work in creating tokens.
Already, regulators have begun to show concern that crypto coins like Gram and Libra might be used for drug dealing, money laundering, and other illegal activities. As a matter of fact, relevant government bodies in the U. S have commenced a clampdown on small cryptocurrency programs on the account of violating security laws.
There is no gainsaying that a major hurdle the Telegram coin would have to cross is the regulators. Although, the company is yet to issue any comments in line with this. Keeping in mind that Telegram was founded by Pavel Durov, who is a self-described libertarian that fled Russia after a fall-out with the Government which forces him to sell off the first social network that earned him some popularity.
One strong point of the Telegram app is that the app allows users to send encrypted messages between phones. This high level of privacy has made the app quite popular among protesters and revolutionaries. These same properties are what make the app unpopular among several government and law enforcement agencies. Several governments have tried to shut down the use of the app in their regions.
While giving details about the Gram, Telegram has claimed that the new cryptocurrency would have the same decentralized structure as Bitcoin. This would make it easy for the currency to avoid clampdowns Governments.
After releasing the coins, the coins would then run on a decentralized network of computers. This means that Telegram would not have control over how and where the coins move.
Skepticism on Gram?
Apart from regulators, some others in the cryptocurrency community have also shown some skepticism against Gram. Quite a number of popular venture capital firms that are popular for investing in cryptocurrencies have not invested in Gram.
Several security researchers have also raised some concerns about the Telegram coin due to the security problems of the Telegram Messenger. This, however, did not stop popular American venture capital companies; Benchmark, Lightspeed Capital and a number of Russian investors from being a part of the fund-raising process for Gram in 2018. Together, the investors came up with $1.7 billion in exchange for getting Grams when the crypto coin was fully developed.
The contract was made official as Telegram assured investors that they would receive their Grams by the end of October 2019 or get their fund back. A lot of stakeholders in the crypto community await to see the outcome of this contract.
Upon release, Gram owners would be able to sell their grams. Although the earliest holders have agreed to a holding period.
Unlike the Facebook Libra, which was expected to be backed up by traditional currencies in bank accounts, the Gram would not have any representation in traditional bank accounts. Like Bitcoin, the coin would gain or lose value based on the current worth to buyers.
Features of the Gram CryptoCoin:
• Gram would be run on a decentralized network.
• The coin can be traded like other cryptocurrencies.
• The coin would not depend on bank accounts for operation (unlike the proposed Facebook Libra).
• Users of Telegram messenger get a wallet and can use Gram to transact on the app.
Apart the Grams making transactions on Telegram much easier, Telegram has also stated ambitions for a bigger Telegram Open Network that would host other digital applications. This would make the open network a multipurpose resource hub for users.
Although the company still has to handle comments from critics and regulators who are against the Gram.