Dubai-based startup secures investment from Chelsea FC owner in Initial Coin Offering
The Dubai-based messaging app, Telegram, has attracted several Russian investors, including Chelsea FC owner Roman Abramovich, since it announced its Initial Coin Offering (ICO) in December 2017, the Arabian Business magazine reported.
An ICO is commonly used by startups to avoid regulatory processes to raise capital, instead it gets funds by selling cryptocurrency to early investors in exchange for legal tender. The cryptocurrency then becomes a functional unit of currency if the project meets its goals.
The firm has gained over $850 million from 81 investors in their presale phase according to filings sent to the US securities and Exchange Commission.
The Telegram’s public ICO is set to be launched in March and attract a total of $1.2 billion, the magazine reported.
The owner of Telegram, Russian entrepreneur Pavel Durov, is also the founder of the social networking site VK. He left the company in 2014 and secured $300 million which he used to create Telegram.