Toncoin (TON) is now in the top 25 of all digital currencies by market cap. But how did it get there? Toncoin is a special kind of cryptocurrency. It started in 2018 as a project within Telegram, called GRAM.
After a fight with the U.S. Securities and Exchange Commission (SEC), Telegram had to stop its work on GRAM. Then the TON Foundation took over. They changed its name from “Telegram Open Network” to “The Open Network” (TON).
The TON network lets you send and receive money through the Telegram app. It also lets you earn more money by ‘staking’ your TON coins. Right now, there are more than 3 billion TON tokens out there. But there’s a limit of 5 billion TON tokens that will ever exist.
Key Takeaways
- Toncoin (TON) is a top 25 digital currency by market capitalization.
- TON is a decentralized finance (DeFi) focused blockchain network with strong ties to the Telegram messaging app.
- The project faced legal challenges with the SEC but has since been relaunched by the TON Foundation.
- TON offers features like peer-to-peer transactions and smart contracts within the Telegram ecosystem.
- While innovative, Toncoin has a controversial background that requires cautious consideration from crypto investors.
What is Toncoin?
Origins and History of Toncoin
In 2018, Toncoin (TON) came to life through the Telegram messaging app. It gathered a hefty $1.7 billion in funding. However, the US SEC had concerns and made Telegram pay back $1.2 billion to investors. This repayment process is still happening. If you were a US investor, you got back 72% and left the Gram token project. Non-US investors, though, could get 110% back instead.
Relationship with Telegram and Pavel Durov
Originally, Toncoin was the brainchild of Telegram and its founder, Pavel Durov, known as the Telegram Open Network (TON). After issues with the SEC, TON Labs re-launched the project, managing to bypass the SEC’s oversight. Since then, the project has expanded, starting with 15 validators and adding more. However, doubts linger about its legitimacy and the SEC’s possible future actions.
Toncoin $TON Explained (Is The Telegram’s Coin Worth The Hype?)
Toncoin (TON) is a real cryptocurrency that comes with some murky history. Be careful if you like to play it safe, as this project might just be all talk. The TON ecosystem has stirred up debates in the crypto world. It shows shady moves like, odd transactions and control by a few. But, it also offers a unique platform for developers, unlike other blockchain networks.
| Metric | Value |
|---|---|
| TON Coin Price Surge | 120% after breaking resistance at $2.749 |
| Support Zone | $4.826 |
| Potential Resistance | $7.283 |
| Fibonacci Extension Targets | $9.741, $11.382, $14.384 |
| TON’s Daily Active Telegram Users | Over 900 million |
The TON ecosystem has had its share of struggles, but it’s still a standout in the digital currency world. It’s closely linked to Telegram and its founder, Pavel Durov. While its past is checkered, its mix with Telegram, novel tech, and strong features have won it fans in the crypto and DeFi space.
Advantages of Toncoin
Toncoin, or TON, is unique because it works well with Telegram. This lets users send TON to anyone on Telegram for free. All you need is a TON wallet. This is great for sending money to friends or buying things from others.
TON Domains and Naming Service
Toncoin has a cool domain service like ENS or Unstoppable Domains. You can buy TON domains, like cryptophia.ton. This makes sending and receiving money easier by using simple names instead of long numbers. It gives a better user experience and opens up Toncoin to more people.
TonMobile eSIM Feature
Toncoin also has TonMobile eSIM. For people who travel, this is super handy. If your phone can use eSIMs, you’re set. Just get it through Telegram and you’re ready to use a new SIM in any country. No more dealing with physical SIM cards.
Disadvantages of Toncoin
Limited Exchange Availability
Toncoin (TON) is in the top 10 for its market size, yet it’s hard to find on big exchanges. You can only trade it for USDT. Or, on decentralized exchanges, you change it for WETH or WBNB. This shortage of places to trade makes TON’s price easily manipulated. Not having many places to trade means buyers and sellers are few.
Controversial Background and Token Distribution
Starting as Gram by Telegram, Toncoin gathered $1.7 billion until the SEC stopped it. Telegram had to pay a fine and stop the Gram project. After that, Toncoin began by TON Labs, not Telegram, but mainly for use with Telegram. While it claims to be decentralized, the barriers for validators and how the initial coins were given out are doubtful. So, approaching it with care is wise.
Toncoin Tokenomics
The Toncoin (TON) ecosystem stands out with its special tokenomics. This affects the way the network grows and develops. A big point in Toncoin’s tokenomics is the maximum and circulating supplies.
Maximum Supply and Circulation
Toncoin’s max supply is 5 billion tokens, with a lot already out there. Today, 3.47 billion TON tokens are in use. This means many people are using Toncoin.
Token Distribution and Validator Requirements
Getting Toncoin tokens and becoming a validator is interesting. For TON network, you need 300,000 TON tokens to be a validator. This shows that only those with a lot of tokens can help run the network, which might not be good for spreading out power. In comparison, Ethereum needs only 32 ETH to be a validator, making it more open to many people.
Also, Toncoin gives tokens only to those who can stake, around 4-5% of rewards. This way of getting tokens hints that the TON network might not become fully decentralized. This could affect how the network is run and choices are made, since a few big holders might have more say.
Toncoin Network Metrics
The Toncoin (TON) network has areas where it shines and others in need of work. For instance, its GitHub activity shows lots of work by developers. They’ve been working on updates across the network. But, some parts of the network have not been updated for a while. This could pose issues for the network’s future growth.
Developer Engagement and GitHub Activity
Looking at TON’s GitHub, we see a lot of action. There are over 1,500 updates, which is a good sign. But, there’s been a slowdown in some areas lately. This slowdown might become a problem if not addressed quickly.
Decentralization and Number of Validators
The Toncoin network’s decentralization is under a close eye. This is due to its starting token distribution and tough entry requirements for validators. Currently, there are 348 validators around the world. Although they may not sound many, it’s an honest global effort. Yet, there’s no clear data on how truly decentralized the network is.
Network Speed and Transaction Throughput
Toncoin prides itself on its network speed and transaction rates. It has a quick block time of 5 seconds and finalizes transactions in about 6 seconds. During tests, it managed to handle over 104,000 transactions per second. This makes it among the top performers in terms of speed. Such speeds are great for real-world uses and applications.
| Metric | Value |
|---|---|
| Developer Engagement (GitHub Commits) | Over 1,500 |
| Number of Validators | 348 |
| Block Time | 5 seconds |
| Transaction Finality | 6 seconds |
| Transaction Throughput (TPS) | 104,715 |
Toncoin Use Cases
One great thing about Toncoin (TON) is it works with Telegram, a big messaging app. You can send TON to any Telegram user for free, if they have a TON wallet. This makes sending money between friends or for services simple.
Decentralized Finance (DeFi) and Smart Contracts
Toncoin also helps make decentralized finance (DeFi) apps and smart contracts. This expands what can be done with money and services in the TON system.
Toncoin Adoption and Partnerships
The Toncoin ecosystem has joined forces with big names in the crypto world, which shows it’s gaining ground and support. For example, it has partnered with Hashkey Capital. This firm is a big player in Asia’s venture capital scene, with over $1 billion managed. Their interest signals that major investors see potential in the Toncoin project.
Moreover, Animoca Brands, a key player in blockchain gaming, is now validating transactions on the Toncoin network. This makes the network stronger and connects Toncoin with a leading player in blockchain games. Thanks to Animoca’s work, Toncoin might see more use, especially in decentralized gaming and entertainment.
These important ties with Hashkey Capital and Animoca Brands highlight Toncoin’s growth and acceptance in the crypto space. As Toncoin’s reach expands, the knowledge and support from these leaders can push its further development, attract more users, and become more widely used in the blockchain community.
Toncoin Price Performance
Toncoin (TON) has jumped more than 40% in the last week and is now at $2.42. This value was last seen in mid-April. The toncoin price performance has placed TON among the top 10 digital coins by market capitalization. It shows that more and more people are investing in it. Right now, TON’s market cap is at $8 billion, putting it above Solana, Litecoin, and Shiba Inu.
Market Capitalization and Ranking
TON is now the eighth biggest cryptocurrency in the world. It’s beaten out coins like Dogecoin, Cardano, and Shiba Inu. This shows that more people are using and liking the Toncoin system.
Trading Volume and Liquidity
Even with these gains, TON still has issues with trading volume and liquidity. It’s not on a lot of the big exchanges, which means its price can be affected easily. This lack of presence on major trading platforms might limit TON’s ability to attract more investors soon.
Toncoin vs. Other Cryptocurrencies
Toncoin (TON) ranks high in market capitalization, ahead of Solana, Litecoin, and Shiba Inu. It’s doing well thanks to its links with Telegram and unique services such as TON Domains and TonMobile eSIM. These make it more attractive and useful to people.
Bitcoin BSC (BTCBSC) is also becoming popular. It tries to bring back the early Bitcoin vibes while using the Binance Smart Chain. Its PoS system lets owners earn a good 193% yearly by staking their coins.
| Cryptocurrency | Market Cap (Billion USD) | Price (USD) | 24h Volume (Billion USD) | Price Change (1 Month) |
|---|---|---|---|---|
| Toncoin (TON) | $16.8 | $7.05 | $0.75 | 19% increase |
| Solana (SOL) | $15.9 | $23.45 | $0.54 | 7% decrease |
| Litecoin (LTC) | $8.4 | $93.12 | $0.42 | 3% increase |
| Shiba Inu (SHIB) | $6.5 | $0.00000925 | $0.21 | 12% increase |
| Bitcoin BSC (BTCBSC) | $4.2 | $0.08 | $0.11 | 28% increase |
Despite Toncoin’s high market capitalization, it’s not as easy to trade it as other big cryptos. This means buying or selling might not be as quick or simple. Toncoin also faces some concerns over its history and future rules. So, interested people should look into it carefully before investing.
Future of Toncoin and The Open Network
The future of Toncoin and The Open Network (TON) is uncertain due to possible SEC challenges. The network shows it’s strong with fast transactions, hitting up to 55,000 per second. But, the way it gives out coins and how tough it is to join as a validator make its claim to being fully decentralized doubted.
Roadmap and Upcoming Developments
In the TON ecosystem, the path forward includes more apps and services that use its speed and size. As of April 2024, it already has over 650 dApps working on its blockchain. The project aims to grow its ecosystem and pull in more devs and users. But, to really make it in the long run, it must handle its regulatory challenges and be more clear.
Potential Challenges and Regulatory Concerns
The TON network has a history that’s made people question its decentralization and how the law sees it. The fact it’s close to Telegram and Pavel Durov has put it under the SEC’s watch. The SEC even made Telegram cancel its first TON project. Growing while facing these regulatory issues and staying on the right side of the law are keys to its future success.
Where to Buy Toncoin
Toncoin ranks high in the cryptocurrency world, but it’s not on many big exchanges. To buy TON, you’ll often need to use decentralized platforms like Uniswap and PancakeSwap. There, you can exchange it for WETH or WBNB.
Recommended Exchanges and Wallets
For those looking to invest in Toncoin, self-custodial wallets are recommended. The Ton Space wallet, which works with Telegram, is a good option. It lets you keep your private keys and digital money secure.
Storage and Security Considerations
Keeping your TON coins safe is essential. Always turn on two-factor authentication and keep your private keys hidden. This stops anyone from stealing your TON through hacking or other unauthorized means.
Conclusion
Toncoin (TON) is a special project linked closely to the Telegram app and its creator, Pavel Durov. The project has had its share of issues and debates with the law. But, it has continued to grow in the cryptocurrency world. Its link with Telegram and new features like TON Domains and TonMobile eSIM have made it more popular.
Yet, Toncoin has had some drawbacks. It’s not very clear in how it spreads its coins. It can also be hard for people to join as validators. Plus, there are still worries about the laws that could affect its future. So, anyone thinking of putting money into Toncoin should be careful. Do a lot of research first.
Even with its challenges, the Toncoin (TON) project is interesting. It’s part of Telegram and brings new ideas to the cryptocurrency world. Its strong technical side, connection with Telegram, and ongoing growth efforts are why it stands out. For those keen on following the cryptocurrency and blockchain field, Toncoin is definitely one to watch.
FAQ
What is Toncoin?
Toncoin, or TON, is a type of digital money that works on a special computer system. It started in 2018 by a company named Telegram as the GRAM project. Because of some disagreements with the law, this project stopped. Later, a new group called the TON Foundation took over and called it “The Open Network” (TON).
What is the relationship between Toncoin and Telegram?
Toncoin has a big connection to Telegram and its leader Pavel Durov. Telegram started Toncoin in 2018 as part of its project, called the Telegram Open Network (TON).
What are the key features of Toncoin?
TON works closely with Telegram. You can send TON coins to other users in Telegram for free. They only need to have a TON wallet. Also, TON has special features like TON Domains and TonMobile eSIMs for easy travel.
What are the criticisms or concerns around Toncoin?
Some people are not sure about Toncoin. It started as the GRAM project and made $1.7 billion. But then, it faced legal problems and had to close. People also worry that not everyone can join as a validator, which they think makes it less open.
What is the tokenomics of Toncoin?
Toncoin can have up to 5 billion coins, with 3 billion out there now. To check the network, you need 300,000 TON. This makes it hard for new people to join.
How is the Toncoin network performing?
Toncoin works well on GitHub, but there’s been less action recently. The network has 348 validators globally, which isn’t many. Despite that, it can handle 104,715 transactions in a second, making it very fast.
What are the use cases for Toncoin?
Toncoin is mainly used for sending money between Telegram users. Also, it can work for finance apps and signing smart contracts. This happens on the TON network.
How is Toncoin performing in the market?
Recently, Toncoin has jumped more than 40% in value, now at $2.42. It’s in the top 10 cryptocurrencies by value. Still, trading it can be hard because it’s not on many big exchanges.
Where can I buy Toncoin?
You can’t get Toncoin on a lot of big exchanges. The best way to get it is on places like Uniswap and PancakeSwap. You trade it for WETH or WBNB. Using a safe wallet like Ton Space in Telegram is good for keeping your TON safe.