The Securities and Exchange Commission (SEC) has upheld its case against Telegram, saying the Gram token is worth less than a donut.
Telegram offered and sold Grams as securities when it promised to deliver them in exchange for funds. That will not change if the Court allows Telegram to deliver Grams to initial buyers as part of a widespread public outcry that is in breach of Section 5.
In a note, the SEC included several comments against the instant messaging service.
The agency blamed the Telegram for saying the company was “dancing around the rules” by trying to draw a line between – Grams buyer investment and Grams delivery. That would allow them to withhold information that should, in principle, be included in regulatory statements.
“Grams will never be worth something.” The SEC ended by saying:
Telegram’s attempt to avoid this economic truth by calling Grams a commodity is a failure. Grams are not a commodity. Unlike gold, comics and donuts from Krispy Kreme – goods that Telegram compares to Grams – Grams have no value.