Unveiling the fervor of TON’s ICO, the historic SEC lawsuit, and the blockchain’s path to revival

First Encounter with TON: A Simple Webpage and Doubtful Glance in 2018

In 2018, I first came across the TON blockchain. It was in an office setting when my friend Mike opened a webpage named ton.org. The page was extremely simple—black text on a white background, presenting “Telegram Open Network” along with several related technical documents, such as the Catchain Consensus, the Fift language introduction, the Telegram Open Network blockchain, and the virtual machine. Despite the seemingly interesting content, I didn’t pay much attention. Perhaps it was because the website looked too bare-bones, or maybe because I felt this wasn’t a legitimate Telegram blockchain but a fake site instead.

ICO Frenzy: The Crazy Era of TON’s ICO

TON’s ICO became one of the largest in history, attracting eager investors from all over the globe. However, the ICO was largely a game for big institutional investors, with most of the TON tokens being sold in massive batches worth millions—even tens of millions—of dollars, leaving retail investors without much opportunity. In this backdrop, pyramid scheme rumors began to emerge—early investors were said to buy TON at low prices and gradually raise prices as they resold it to subsequent investors, causing token prices to skyrocket. However, downstream retail investors never actually held TON tokens, only the right to possibly obtain them in the future.

As the ICO progressed, Telegram’s fundraising activities drew the attention of the U.S. Securities and Exchange Commission (SEC), as some of the funds were sourced from the United States. In 2019, the SEC filed a lawsuit against Telegram, accusing its ICO of violating U.S. securities laws—a major legal battle in cryptocurrency history. Eventually, Telegram decided to cease its development and support for the TON blockchain, returning the funds raised during the ICO to its early investors.

For the initial investors, the specifics of the refund varied: some received a 30% discount, others received 20%, while some even mentioned interest payouts. While there was no uniform answer regarding refund amounts and interest, one thing was certain—later-stage retail investors were not adequately protected. They may not have received their entire investment back, or only a portion of it, possibly due to Telegram using part of the funds for blockchain development, developer salaries, and other related costs. This event severely damaged investor confidence in TON.

Struggling Rebirth: The Challenges of 2020-2023

Between 2020 and 2023, the TON blockchain faced a myriad of challenges. The past legal disputes and refund turmoil left investors anxious and distrustful, with many choosing to exit. Consequently, the development of the blockchain stumbled along.

However, this history taught us several things:

  1. TON was one of the largest ICOs in history.
  2. The scale of this project was immense, even leading the SEC to file a lawsuit in 2019.
  3. The SEC lawsuit halted the TON blockchain project and shattered investor confidence.
  4. This may have been due to Telegram’s lack of legal preparedness or the absence of specific legal frameworks at the time.

Conclusion: From Hype to Setbacks, TON’s Road to Revival

TON’s ICO frenzy once made it a celebrated star project, but the sudden halt due to the SEC lawsuit also turned it into one of the most significant moments in cryptocurrency history. This tumultuous journey serves as a reminder that even the brightest projects can falter in the face of legal and regulatory issues. However, true value lies in the ability to rise again after hitting rock bottom. The story of TON is far from over—it’s entering a new chapter filled with both challenges and opportunities.