What is Toncoin and How Does It Work?

What is Toncoin and How Does It Operate?

Toncoin is recognized in the world of cryptocurrency as the token that Telegram came close to introducing. However, Telegram abandoned its cryptocurrency aspirations back in 2020 due to a lawsuit filed by the SEC.

Now, Toncoin has made a comeback and is experiencing higher demand than ever before. It can be purchased on leading cryptocurrency exchanges and even garnered an endorsement from Telegram’s founder.

In this guide, we’ll provide crypto investors with a comprehensive understanding of Toncoin and its $TON cryptocurrency, including where to purchase $TON today.

Toncoin in a Nutshell

Toncoin is a blockchain network originally conceived by Telegram, the widely-used messaging application, in 2018. At the time, Telegram secured $1.7 billion in private funding to develop a new blockchain aimed at competing with Ethereum. The abbreviation ‘ton’ in Toncoin stands for The Open Network.

Nevertheless, before Toncoin was officially launched, Telegram abandoned the project. The reason was the lawsuit filed by the US Securities and Exchange Commission (SEC) against Telegram, asserting that $TON constituted a security.

Following Telegram’s withdrawal, independent developers took charge of the project. Newton, which has since become Toncoin, assumed control of the ton.org domain name and the Toncoin code repository in 2021. In the same year, Toncoin introduced the Toncoin blockchain and the $TON token.

While Toncoin now operates independently from Telegram, Pavel Durov, the founder and CEO of Telegram, voiced his support for Toncoin in a 2021 Telegram post. He endorsed Toncoin while emphasizing that Telegram no longer maintains any financial or technological ties with $TON.

Related: What is AZCoiner?

The Functions of Toncoin

The $TON token fulfills several crucial roles within the Toncoin blockchain.

Transaction Fee Payment: $TON is the primary token used to cover most transactions on the Toncoin blockchain and across various blockchains. To execute transactions on the Toncoin network, users are required to pay in $TON, akin to how Ethereum users pay gas fees in $ETH.

Data Storage and Domain Names: $TON is also essential for covering costs associated with data storage on the Toncoin blockchain and blockchain-based domain names. Toncoin is in the process of developing a proxy, and $TON is expected to be used for gaining access to this proxy.

Governance: $TON serves as a governance token for the Toncoin blockchain, granting all $TON holders the ability to participate in voting on network proposals. The inaugural Toncoin vote, held in February 2023, resulted in the freezing of approximately 20% of the Toncoin supply for a period of four years.

Staking: Toncoin investors have the option to stake their $TON tokens to validate transactions on the network. The blockchain employs a proof-of-stake validation mechanism, similar to Ethereum and other major networks. Staking $TON is currently accessible directly on the network and through prominent cryptocurrency exchanges like Binance, with participants earning additional tokens as rewards.

Toncoin Price History and Price Prediction

Toncoin initially distributed the $TON token through an open mining process, allowing anyone to participate. This mining process ran from June 2020 to June 2022, putting $TON into the hands of thousands of developers, investors, and early adopters.

Currently, Toncoin is trading at $2.17 USD. $TON, like the rest of the cryptocurrency market, faced significant fluctuations during the bearish period, dropping to $0.80 in June 2022. However, the token has experienced stable growth for the rest of 2022 and into 2023 as it attracted more users and developed its network infrastructure. During this time, daily trading volumes have ranged from $25 million to $100 million.

Interest in $TON waned in the first half of 2023 after the project’s initial governance vote, with the price falling to $1.20 USD in early August. However, today, after integration with Telegram, $TON has risen to $2.50 USD and is still on an upward trajectory. The token has seen trading volumes of over $50 million for most of the past week.

Currently, many investors are wondering how high $TON can go. According to our Toncoin price prediction, the token could reach $3 by the end of this year and $4.50 by the end of 2024.

Our analysts are highly optimistic about Toncoin’s prospects, especially the significant increase in the number of developers working on the Toncoin blockchain. The project has also implemented the Ethereum-Toncoin bridge, which could further drive Toncoin’s adoption and encourage more cryptocurrency investors and DeFi users to explore this new blockchain.

In conclusion, we predict that $TON could reach $25 by 2030, increasing tenfold from its current price.

Should I Buy Toncoin?

As Toncoin’s price surges, many investors are wondering whether it’s the right time to jump in or if the price has already climbed too high. We are optimistic about $TON and believe it’s one of the most promising cryptocurrency projects in 2023. Here’s why:

Attracting Developers through Telegram’s User Base

It’s challenging to overstate the significance of Toncoin’s recent integration with Telegram. This messaging app has a global reach, with over 700 million monthly active users, making it a vast user base for Toncoin to tap into.

Importantly, developers want to build where the users are, and Telegram provides an endless source of new users for the applications they create. Therefore, integrating with Telegram may encourage more developers to migrate from other blockchains to Toncoin.

At a time when Solana, in particular, is facing difficulties, Toncoin has the potential to attract top developers and create the next generation of DeFi applications. The more the platform grows, the more valuable $TON becomes.

Price Momentum in a Declining Crypto Market

Toncoin’s price momentum could hardly be better timed. The project is on the upswing just as analysts declare that the cryptocurrency winter is coming to an end.

The momentum of Toncoin has the potential to push its price to $3 or higher by the end of this year, and it could see a price increase of over 50% in 2024, according to our price prediction.

The network’s momentum doesn’t stop at an immediate token price increase. Toncoin is witnessing an increase in trading volume, token holdings, and developers working on the blockchain. All of these are positive signs for the ecosystem’s growth and set the stage for even larger price gains in the future.

Staking Rewards with $TON

Toncoin investors can also profit from this project by staking their $TON tokens. This is a straightforward way to earn interest in the form of additional $TON tokens, which can appreciate in value as the project develops.

Staking $TON is currently available through several major cryptocurrency exchanges, simplifying the staking process and ensuring it’s accessible to all investors.