What Is Toncoin (TON)?
Toncoin (TON) is a Layer-1 blockchain network that was created by Telegram in 2018 as a competitor to Ethereum (ETH). However, before its official launch, Telegram abandoned the project due to a lawsuit from the US Securities and Exchange Commission (SEC) claiming that Toncoin (TON) was a security.
Following the SEC case, the TON Foundation1, an independent community of enthusiasts, took charge of the project and rebranded it as “The Open Network.” The Open Network’s native crypto is Toncoin (TON), which went live in 2021.
Interestingly, Telegram actually returned to Toncoin in 2023, announcing an official partnership with the project. The token can be used to pay for premium services on Telegram, and a surge has followed the partnership in the crypto’s market capitalization.
Toncoin can be used for network operations and other transactions for applications built on Toncoin. Toncoin is a high-performance, decentralized blockchain that offers fast transaction speeds and low fees.
In summary, Toncoin is a decentralized blockchain network that offers fast transaction speeds and low fees. It was originally created by Telegram in 2018 but is now independent and run by the community. The Toncoin crypto is the network’s native cryptocurrency and can be used for network operations and other transactions.
Key Takeaways
- Toncoin was created by a team from the messaging service Telegram in 2018.
- It is a layer-1 blockchain project that boasts rapid transactions and multiple-use cases.
- Telegram dropped the project after an SEC case, but its development is still ongoing with support from the community and a team of professional developers.
- Toncoin has multiple use cases, including DeFi, GameFi, and SocialFi.
What Are the use cases Of toncoin?
Paying for Transaction Fees
Toncoin’s primary purpose is to empower the development of decentralized applications (dApps). To process transactions on the Toncoin blockchain, users must pay transaction fees using Toncoin (TON). Additionally, Toncoin (TON) is required to pay for blockchain-based domain names stored on the Open Network.
Toncoin Governance
Toncoin (TON) is also used as a governance token for the Toncoin blockchain. Anyone who owns Toncoin can take part in voting on proposals for the future of the network. For example, in February 2023, users voted to freeze Toncoin found in inactive mining wallets, resulting in nearly 20% of the Toncoin supply being locked for four years2.
Staking
Toncoin holders can stake their coins to validators that verify transactions on the network. The blockchain uses a proof-of-stake (PoS) validation mechanism similar to Ethereum, Cardano, and Solana. Staking for Toncoin is currently available directly on the network or through several major crypto exchanges, including Binance. Investors who stake Toncoin earn additional tokens as a reward3.
In summary, Toncoin is a multi-utility crypto that is used for transaction fees, governance, and staking on the Toncoin blockchain.
Why do people buy toncoin? And should you consider adding it to your portfolio?
Toncoin has multiple use cases, and its market capitalization has almost reached the top 10, according to CoinGecko. Nonetheless, purchasing any cryptocurrency is inherently risky due to the volatility of the market. Always do your own research before purchasing a cryptocurrency.
The Telegram Partnership has resulted in a price surge
Toncoin’s recent integration with Telegram, a messaging app with over 700 million monthly active users, is a significant development for the project. This integration provides Toncoin with access to a massive user base that developers can tap into to create new DeFi apps. The more development on the platform, the more valuable Toncoin arguably becomes.
Bullish Momentum as the crypto winter appears to be ending
Toncoin’s bullish momentum is timely as some analysts declare the end of the crypto winter. According to some price forecasts, Toncoin’s momentum has the potential to carry it to a price of $3 or higher by the end of the year, and it could post gains of 50% or more in 20244.
The network’s momentum extends beyond just immediate token price gains. Toncoin is seeing a surge in trading volume, wallets holding the token, and developers working on the blockchain. As data from TradingView shows, Toncoin has seen a considerable price surge since the Telegram announcement was made. That said, it’s still trading well over 50% below its all-time high price.
As of writing, Toncoin has a market capitalization of $7.8 billion, placing it in the top 15 cryptocurrencies by market cap, according to CoinGecko.
How do Toncoin (TON) Staking Rewards work?
Staking Toncoin is a straightforward way to earn interest in the form of additional Toncoin. To participate in Toncoin staking, you need to download and set up a Toncoin staking-compatible wallet. You can then delegate your coins to a validator and receive Toncoin rewards. The APY on staking varies across staking pools, so you’ll have to do your own research to find a reliable validator with good rewards.
Why Is The Toncoin Price Rising?
The main reason for the price surge is the integration of Toncoin’s wallet into Telegram, a popular messaging app with over 700 million monthly active users. Toncoin investors believe that this integration will attract more people to buy and use Toncoin, driving up demand for the coin and increasing its price.
In addition to the Telegram integration, Toncoin has been gaining momentum due to its development milestones. The project held its first successful vote in February 2023 and has seen the Toncoin coin added to several Tier-1 exchanges.
According to Tonstat, there are nearly 1 million active Toncoin wallets, over 1.3 million NFTs have been minted on the network, and daily transactions have sometimes exceeded one million5.
Overall, the combination of the Telegram integration and the blockchain’s development progress has helped fuel the rise of Toncoin’s price. Investors are optimistic about the coin’s potential and are betting on its future success.
Where Can You Buy Toncoin?
Toncoin can be purchased on several major crypto exchanges, making it easy for investors to acquire the token even if they don’t already own cryptocurrency. Binance, Conbase, and Kraken are three of the leading exchanges where Toncoin can be traded.
Final Thoughts on Toncoin (TON)
Toncoin (TON) is a layer-1 cryptocurrency that was initially created by Telegram, only to be dropped following an SEC case. An independent team took over after the SEC ruling and continued to build the project with the aim of creating a high-speed PoS network that could compete with Ethereum.
In an interesting turn of events, Telegram returned to Toncoin via an official partnership in 2023, which led to the project’s valuation soaring due to speculation about how Telegram’s 700 million strong user base would leverage the crypto.
Beyond its close ties to Telegram, Toncoin offers various use cases such as staking, domain names, DeFi, governance, and payments.
Frequently Asked Questions
What are the primary uses of Toncoin?
Toncoin is used for a variety of purposes, including:
-Payment for goods and services on the TON network
-Staking by validators to secure the network and earn rewards
-Governance, allowing community members to vote on the project’s development.
-Buying premium Telegram services.
Can Toncoin be considered a wise investment choice?
As with any investment, there are risks and potential rewards associated with investing in Toncoin. The value of Toncoin, like any cryptocurrency, is subject to market fluctuations and volatility. Doing your own research and consulting with a financial advisor before making any investment decisions is important.
How does Toncoin compare to USD in terms of value?
Toncoin, like all cryptocurrencies, is a decentralized digital currency that operates independently of traditional financial institutions and government-backed currencies such as the US dollar. The value of Toncoin is determined by market demand and supply and can fluctuate significantly. For example, the token is currently trading at over 50% below its all-time high.
What are the tokenomics of Toncoin?
Toncoin has a total supply of 5 billion tokens, with a circulating supply of approximately 3.4 billion tokens as of December 2023.
How does the TON blockchain technology operate?
The Toncoin blockchain is a layer 1 smart contract network that uses a Byzantine Fault Tolerant (BFT) consensus mechanism to achieve high throughput and low latency. The TON blockchain also uses a unique sharding mechanism to partition the network into smaller sub-networks, allowing for greater scalability and efficiency.
WRITTEN
Peter Barker
Peter is an experienced crypto content writer and a DeFi enthusiast with more than 3+ years of experience in the space. Previously a journalist and news editor at a leading European news sourcing agency.
