In several years token capitalization can reach $200 billion.
Aaron Brown, ex-COO of the AQR Capital Management investment company, put forward an assumption that will most certainly bring joy to the many investors of the pre-ICO Telegram Open Network (TON) project. According to his version, the brainchild of Pavel Durov, has promising prospects market-wise - possible market cap of the Gram cryptocurrency might reach USD200 billion in as little as five years.
According to the expert’s forecasts, the whole cryptocurrency market can expect the same level of growth. He predicts in five years the number of cryptocurrency users will exceed 300 million, with total cryptomarket capitalization nearing USD5 trillion. With volumes like these, attracting around 4% of these prospective users and capital to an already-known platform would be not at all surprising.
Being an experienced cryptomarket professional, Brown, however, abstains from investing into Telegram. He agrees with experts who believe Telegram’s ICO and its cryptocurrency is too overvalued. At the same time, the TON project team hopes to raise USD 3 to 5 billion with the private sale of tokens, and thinks a public offering might even be unneeded, even though at this point there are quite enough people willing to invest into the prospective token.
Brown also notes that Telegram has the potential to grow, encompassing up to a third of the gigantic net society, with cryptocurrencies getting a share in a third of the internet business total net worth. This scenario, however, has its own hurdles to overcome in order to become real. For instance, at the moment the future of the messenger in Russia is uncertain, with Roskomnadzor having given the company 15 days to provide the Federal Security Service with keys necessary to decrypt user messages, and the service facing possible fines and even being blocked in the Russian Internet segment if it fails to comply. Pavel Durov himself, however, judging by his social networks activity and posts, has long ago distanced himself in his work from Russia, going so far as not being very welcoming to investors from his home country.
Nevertheless, according to Brown’s optimistic estimates, Gram could reach a market cap of USD1 billion and more upon launch. Token value will be calculated based on user transactions and their current balances.
It should be noted that the project has already reported raising USD850 million during the first round of private sales, with eyewitness accounts of a second presale already in progress. Experts disagree on the topic of evaluation of the company’s crowdfunding strategy – some say that allowing only qualified investors to be given the opportunity to invest into TON works well, others think a public ICO could be very successful, while even others puzzle as to why Telagram needs such a large amount of money for launching the project and think the team is simply riding the hype wave and cashing in on their image.
Regardless, the buzz generated by the project has revitalized the investors’ attention to the ICO industry. Net investment into blockchain startups is expected to reach USD 18 billion in 2018.
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