There are already tons of large players in the market, ranging from banking wallets (CitiPay) to Fintechs (PayPal, Venmo). ",
TON has direct competitors across different services the company would like to build from messaging to decentralized VPN services.
As of Proof-of-Stake consensus mechanism, it\u2019s also in several large Blockchain projects, including Ethereum, immediate roadmap.
The main product risk for TON is that many of the services have already been introduced by competitors and therefore might gain significant market share by the time TON launching its services.
As WhatsApp and Facebook messenger already have large market shares among western countries, it might be hard for the project to expand its market share in western countries.
All TON services are now only concepts and the characteristics of the final system may ultimately be very different from those claimed in WP, especially in terms of network bandwidth.
In this regard, it is not clear which direction of the development will be the main focus at early stages.
There is no data on the evaluation of economic effects of each of the indicated areas.
The given cost distribution is not detailed and only highlights the use of funds.
The price per customer might be significantly lower than $40 for WhatsApp, as there are many customers of Telegram among countries with oppressive regimes. That is why the valuation of the company is arbitrary.
Since the outlines of the TON and Telegram projects are very diffused, this can eventually lead to the fact that not the ICO participants, but the founders of Telegram will be the main beneficiaries of the sale process.
The collected funds will finance Telegram roadmap, which is in fact closely related to TON, but still a different project.
At the moment, the whole project team is involved in Telegram. Despite the fact that TON and Telegram are strongly interrelated projects, their development should be separated.
TON (Telegram Open Network) enters the market of consumer payments in messengers. The global market of mobile payments is expected to grow at CAGR 40% and estimated to reach at market size of US ~$5 billion by 2022. However, there are already tons of large players in the market, ranging from banking wallets (CitiPay) to Fintechs (PayPal, Venmo). Also, TON has direct competitors across different services the company would like to build: TON Storage is similar to Filecoin, which raised $257M in last September, Storj, and Sia; TON Proxy sounds similar to the project Orchid; TON Services have same functionality as CoinBase Toshi marketplace and Sirin, which is recently completed token sale; TON DNS is similar to MaidSafe and Blockstack, which raised $50M on an ICO in December; in the messaging space there\u2019s Status and Kin. As of Proof-of-Stake consensus mechanism, it\u2019s also in several large Blockchain projects, including Ethereum, immediate roadmap.
Telegram Open Network (or so-called TON) aims to create a cryptocurrency wallet as well as products such as distributed file storage platform, a VPN, a decentralized app (dApp) platform and a DNS. The team would like to create a platform with 5 main services: TON Storage(Distributed file-storage technology available for storing arbitrary files), TON Proxy(proxy/anonymizer layer used to hide the identity and IP addresses of TON nodes), TON Services(a platform for third-party services of any kind that enables smartphone-like friendly interfaces for decentralized apps and smart contracts), TON DNS(a service for assigning human-readable names to accounts, smart contracts, services, and network nodes), and TON Payments(a platform for micropayments and a micropayment channel network) TON will be based on the TON Blockchain - a scalable and flexible blockchain architecture that consists of a master chain and up to 2^92 accompanying blockchains. In October 2017, Telegram reached 170M monthly users, delivering 70B messages every day and at least 500K new users join Telegram daily. At this rate, the service is expected to hit 200M monthly users in Q1 2018. Telegram TON team plans to launch minimal viable test network of TON by Q2 2018 and all of the services will be put into full operation by Q2 2019. The main product risk for TON is that many of the services have already been introduced by competitors and therefore might gain significant market share by the time TON launches its services. It is worth noticing that as WhatsApp and Facebook messenger already have large market shares among western countries, it might be hard for the project to expand its market share in western countries.
In addition to payments for all digital and physical assets sold by individual merchants within the Telegram ecosystem and on other projects integrated with TON, the TON coins (Grams) will be used as: Commission («gas») paid to TON nodes («validators») for processing transactions and smart contracts; Stakes deposited by validators to be eligible to validate transactions and generate new blocks and coins; Capital lent out to validators in exchange for a share of their reward; Voting power required to support or oppose changes in the parameters of the protocol; Payment for services provided by apps built on the platform (TON Services); Payment for storing data securely in a decentralized way (TON Storage); Payment for registering blockchain-based domain names (TON DNS) and hosting TON-sites (TON WWW); Payment for hiding identity and IP addresses (TON Proxy); Payment for bypassing censorship imposed by local ISPs (TON Proxy). All of these services can be free for the users since the application owners may choose to cover the corresponding fees, and adopt a freemium or an advertisement-based business model.
TON would like to raise $500 million to $600 million in and then $600 million to $700 million publicly. The company is using the Simple Agreement for Futures Tokens (SAFT) structure, in which money is raised from accredited investors before a functioning network is built, in order to avoid running afoul of securities laws. Analyzing major acquisitions and evaluations of messengers (WhatsApp, Viber, Kik, WeChat), we obtained that on average each monthly customer costs $32. As Telegram has 180M monthly users, the company might be valued around $5.7 billion. However, one must admit that most of the customers of Telegram come from oppressive regimes, not from western countries, that is why the price per customer might be lower. Then, the evaluation using this method is arbitrary. As the company plans to sell 44% of tokens and raise $1.2 billion, the evaluation of the whole TON company might be around $2.7 billion. The price of the tokens will be denominated in dollars and will be determined according to the formula 0.1 × (1 + 10−9)^n More than 80 percent of collected funds will be spent on equipment, bandwidth, colocation, and user verification costs. The rest will be allocated for wages, offices, and legal and consulting services. The given cost distribution is not detailed and only highlights the use of funds. Four percent of the supply (200 million Grams) will be reserved for the development team with a 4-year vesting period. This gives team bonus around $110 million. In addition to payments for all digital and physical assets sold by individual merchants within the Telegram ecosystem and on other projects integrated with TON, the TON coins (Grams) will be used as payment for various services of TON platform, such as TON Storage, TON Proxy, TON DNS.
The team has strong world class experience in building and scaling robust systems globally. Nikolai Durov \u2013 Co-Founder and CTO of TON, is an expert in distributed systems. Nikolai scaled VK and then Telegram to tens of millions of daily users. In 2014 Nikolai became interested in Bitcoin and related technologies. His research on these topics culminated in TON\u2019s Technical White Paper, where he summarized the advancements of blockchain technology and proposed a novel architecture for scalable decentralized ledgers. Pavel Durov \u2013 co-founder and CEO of TON, he first gained international recognition for founding VK, which under his leadership commanded a 70 percent market share in Russia, Ukraine and Belorussia, eclipsing Facebook and other competing social networks. At 21 Pavel single-handedly coded the first version of VK. He founded Telegram and became interested in cryptocurrencies in 2013, when he spent $1.5 million of his savings on Bitcoin that he holds to this day. The Telegram backend team, which has an unparalleled ratio of winners of worldwide coding competitions, specializes in creating secure data storage engines for distributed server infrastructures. All networking, cryptographic, and database engine software running on thousands of Telegram servers is custom-built by these developers.