Obligatory: https://www.schneier.com/crypto-gram-9812.html $300,000 isn't a whole lot more than it would cost to get n entire novel cryptosystem for a complex application built out of idiosyncratic components assessed professionally. They should just retain Riscure or Rambus to do that for them instead of the PR stunt. Previous thread about Telegram on HN, featuring Moxie Marlinspike: https://news.ycombinator.com/ite…
That's not too dissimilar to suggesting hiring an ISO-certified shop to redo your beautiful hand-optimized assembly code in an industry-standard Java. It's a simplification, but I'm pretty sure a large chunk of HN can relate to how much of a killjoy letting others do the interesting parts is.
In the end all these not-so-subtle backstabs and innuendos that they are just a bunch of annoying f#cking amateurs is counter-productive. They won't be using SSL and $300K is not enough to run their custom crypto through an audit that will be good for all the "experts". Besides, the main issue with the Telegram is not their crypto, is not the contests, it's the fact that they got off the wrong foot with the public applied crypto community. In theory, they should be fixing that, but in reality they don't seem to give a flying f#ck about it, which to me actually looks more like a show of a backbone rather than of an ignorance.
Ultimately they want the same thing as this Moxie person. They want less surveillance. Now pray tell why they should have their head repeatedly dunk in a toilet bowl every time their project gets a mention?