Telegram Token Sale Is Likely a Victim of Rising ICO Scrutiny

Telegram Group Inc., an encrypted messaging app, has reportedly scrapped plans to issue digital tokens in a public sale after raising a whopping $1.7 billion privately.

One argument is that the company, founded by self-exiled Russian Pavel Durov, doesn’t need additional funds. But the move would come as securities officials are increasing scrutiny on the digital token market, and a public sale would have made the company more susceptible to regulatory risk, according to Spencer Bogart, partner at Blockchain Capital. The Wall Street Journal earlier reported Telegram’s plans to cancel the sale, citing an unnamed person familiar with the matter.