ICOs: Flipping Telegram

ICOs: Flipping Telegram

The world of initial coin offerings (ICOs) is attracting so much interest that some investors are able to double their money—on paper—before an offering has even begun. This is the case with the chat app Telegram, which is targeting a blockbuster $1.2 billion ICO.

The offering is due to open to the general public in March, but investors who got in on an earlier, private investment round, are already flipping their GRAM crypto tokens for twice the price they got in for.

While investors commonly sell part of an allocation in an upcoming ICO to others, the level of interest in the Telegram offering is at a fever pitch.

Telegram split its token offering into two tranches. It plans to raise $600 million in a so-called private sale to institutional investors that closes at the end of this month.

Private-round investors should have paid $0.30 a token, according to estimates from Telegram’s offering documents. (It gets complicated because the price of a token changes depending on the size of the offering.) Quartz contacted Telegram but didn’t receive a response.

Some of these early investors are already flipping their allocations in the round for as much as double the offering price. One tranche of 5.3 million GRAM tokens was going for $0.60 a token, putting the total price, inclusive of fees for the transaction, at $3.2 million. Another tranche of the same size, from a separate seller, was offered at $0.57 cents a token, carrying a price tag of $3 million.