Telegram Open Network (TON) is expected to surpass the record $20 billion in value over the next five years, says a recent research. The data has been gathered and analyzed by New York-based blockchain startup – Decentral Park Capital.
The document comprises 59 pages, analyzing the current state of Telegram Open Network and describing it as a “sleeping giant awakens”. The report claims TON’s native cryptocurrency has the full potential to become a leading protocol assets within five years. We are yet to see the growth of the Gram (GRM).
Decentral Park Capital’s report outlines three major challenges in front of TON.
The document calls out Telegram founders for their secretive behavior and lack of a desire to share endeavors since March 2018. There is mentioned a “lack of robust communication channels, combined with the high technical complexity”, questioning TON’s ability to fulfill their promises.
“The Infinite Sharding Paradigm; as mentioned in Section 3.1.2, conceptually, the idea is nothing short of brilliant. Given, however, its novelty and the lack of a formal proof and/or exposure to the code that translates it into a system95, we cannot help but question its feasibility. Over-promising and under-delivering is, sadly, almost the norm in the cryptoasset space. For context, Ethereum started its journey as the scalable world computer, only to find that they would have to build a new platform from the ground-up, a short 3 years after its initial launch, in order to fulfil that vision. That said, members of the validator community we interviewed, noted that early indications in TON’s Testnet, are that the principles of the Infinite Sharding Paradigm seem to work and expressed their excitement to see the full range of possibilities it might enable.”
Crypto assets are yet to be discussed by many governments around. The lack of regulation within that field leaves questions of how TON aims to conquer more markets and diversify its portfolio of countries while remaining intact by the local regulations.
“Last, but certainly not least, is the regulatory minefield that most blockchain projects have to navigate. We estimate that approximately 60% of Telegrams MAU base is distributed between Iran, Russia, Brazil and China112 – all markets where heavy government intervention in industry is commonplace. With concerns about the classification of the Gram as a security under SEC regulations being further diffused, we believe that most of the regulatory headwinds Grams will probably face will come from Telegram’s rocky history with the local governments.”
“Given Telegram’s history with the authorities in Iran and Russia specifically, we can assume that it will be hard for local governments to cut off access to the platform. However, further assuming that Iran, Russia, China and Brazil will be key geographies in driving adoption for TON Payments, and by extension the Gram, we estimate a relatively high risk of government intervention in cutting off the fiat on-ramps to the TON economy.”
Researchers expect the selling pressure of Grams to outweigh demand for the assets. The overall demand for Grams among crypto-natives is weak. Currently, users can acquire Grams, but face delivery delays, having the Foundations intent to not further proceed with buybacks.
Decentral Park Capitals states they firmly believe that demand will hit the Telegram Open Network blockchain, but it remains unrealistic given the early stage of the current network’s development.