Telegram Open Network Reportedly Set to Launch in Q3 2019

The Telegram Open Network (TON), a blockchain developed by the popular privacy-centric messaging app Telegram, is reportedly set to launch in the third quarter of this year, according to an internal note sent to the firm’s investors.

According to TheBlock, Telegram has reported a successful testing process for its blockchain and consensus algorithm, as it “met the goal of its original TON white paper.” The network reportedly entered its private beta in April of this year to Russian developers.

Citing an unnamed source, the news outlet reports Telegram claimed the testing period “reaffirms” its belief that “the TON virtual machine and the TON … Byzantine consensus algorithm are capable of meeting the goals stated in the original white paper.”

In February of this year, Telegram revealed through an investor update that TON was 90% complete. Sources revealed that during its beta testing phase developers were able to set up TON blockchain nodes and test transactions. According to some, Telegram’s Open Network will have to launch by the end of October for token purchase agreements to remain valid.

The network is said to have shown “extremely high transacting speeds.” The blockchain will let users create decentralized applications (dApps) powered by its native GRAM token, and will see the messaging leverage its 200 million user base to help cryptocurrency adoption grow.

While TON’s beta testing version was set to be released late last year, progress is being made. The company initially raised $1.7 billion through an initial coin offering (ICO) that wasn’t open to the public to develop the network. The ICO is said to have attracted investors like Sequoia Capital, Benchmark, and more.

The messaging app’s record-setting ICO was notably seen as a threat to national security by Iran, and the app itself has been banned in Russia in response to a refusal to cooperate with a request that could see it assist in decrypting users’ conversations.

Coinbase Outbids Binance to Acquire Crypto Prime Broker Tagomi in All-Stock Deal

Francisco Memoria

San Francisco-based cryptocurrency exchange Coinbase has announced t is acquiring crypto prime broker Tagomi, which focuses on servicing institutional investors.

The companies did not disclose the price of the acquisition, but a source familiar with the deal revealed Coinbase paid entirely with its privately-held stock. The source added that media reports in November claiming Tagomi was being sold for $150 million overstated the value.

According to Fortune, a source familiar with Tagomi revealed the price was “close to $100 million,” and added the San Francisco-based firm outbid leading cryptocurrency exchange Binance to acquire Tagomi.

Tagomi was launched in December 2018, and gained attention in the cryptocurrency space for the veterans of the traditional financial world in its executive team. These included Goldman Sachs’ former head of electronic trading Greg Tusar and Union Square Ventures partner Jennifer Campbell. Tagomi’s financial backers include billionaire tech mogul Peter Thiel.

Tagomi’s focus on institutional investors gave large traders additional options in the space, as before they had to rely on over-the-counter trading desks for large transactions. In its announcement, Coinbase noted the acquisition will allow it to better serve institutional investors. It reads:

The addition of Tagomi will round out our product suite for the fast-growing institutional trading market. It will allow us to offer custody, professional trading features, and prime brokerage services on one platform, giving sophisticated investors the seamless, powerful trading experience they have come to expect in equities and FX markets.

Fortune reports Emilie Choi, Coinbase’s chief operating officer, noted Tagomi will initially operate as a stand-alone brand. Over time, however, it will likely be integrated into Coinbase Pro, Coinbase’s platform for professional traders.

Featured image via Pixabay.