Encrypted-messaging startup Telegram Messenger LLC looks like it will be the latest company to jump on the initial coin offering bandwagon, according to a number of reports in recent days.

Cryptovest broke the news first on Jan. 5, revealing both a teaser video and roadmap for Telegram’s ICO that will operate on a “third generation” blockchain named TON. The roadmap shows a number of testing periods for the TON blockchain but more importantly an ICO in March for a native token “Gram” to go on sale for about $1.20 apiece. The report goes on to note that a vesting period for the tokens is also expected, with the thawing of tokens will take place on a quarterly basis starting 2019.

TechCrunch, reporting today, provided more details, saying that according to its sources, Telegram is considering raising as much as $500 million in a pre-ICO sale at a potential total token value of $3 billion to $5 billion. The report also claimed that the pre-ICO will not be open to the public but will be limited to “whales,” with a possible minimum buy-in of $20 million. Also, it reportedly will require fiat currency such as the U.S. dollar to buy in, not other forms of cryptocurrency.

Both reports claimed that Telegram is looking to set up its own internal payments platform using the cryptocurrency issued in the ICO, so the toeksn won’t be linked to equity in the company.

It’s a feasible plan for Telegram. Although it’s hard to tie down recent market share numbers for messaging apps, as of July Telegram was said to have 200 million users, putting it in eighth place in the market and well behind market leaders such as the Facebook Inc.-owned Messenger and WhatsApp.

The relevant comparison in the figures is LINE Corp.’s app, which sits in seventh place with 217 million users. LINE, the most popular messaging app in Japan, Thailand and Taiwan, also happens to have a highly successfully payments platform in the form of LINE Pay.

Although it’s not a blockchain-based cryptocurrency platform, LINE Pay does show that you don’t need a billion users worldwide to establish a payment platform. Coupled with the fact that Facebook has yet to enter the payments market, it’s a prime opportunity for Telegram to become a leader in payments.

Photo: microsiervos/Flickr