What is Toncoin: A promising coin

image
WRITTEN BY Abel Stokes 94 views date-icon 2024-05-14 09:46:00

Toncoin is known among cryptocurrency enthusiasts as the token that Telegram almost launched. However, the messaging platform abandoned its cryptocurrency ambitions after the SEC sued it in 2020. Now Toncoin is back and more in demand than ever - it can be bought on major cryptocurrency exchanges and has even been backed by Telegram's founder.

What is Toncoin

Toncoin is a blockchain network first founded by popular messaging app Telegram in 2018. At the time, Telegram raised $1.7 billion in private funding to create a new blockchain to compete with Ethereum. The letter "ton" in the word Toncoin stands for open network.

Toncoin homepage

But even before Toncoin was officially launched, Telegram abandoned the project as the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Telegram claiming that Toncoin was a security.

After Telegram abandoned Toncoin, the project moved to developers not affiliated with Telegram. Newton, now called Toncoin, acquired Toncoin's code repository, ton.org, and domain name in 2021. That same year, Toncoin introduced the Toncoin blockchain and the $TON token.

Although Toncoin is a separate project from Telegram, Pavel Durov, founder and CEO of Telegram, wrote about the project on Telegram in 2021. He supported Toncoin and emphasized that Telegram is no longer linked to $TON either financially or technically.

What Toncoin is used for

First, $TON is the only token that can be used to pay for most transactions on the Toncoin blockchain and between blockchains. Just as users of the Ethereum blockchain must pay $ETH for gas, all users of the Toncoin network must pay $TON to process transactions.

You will also have to pay $TON to store data on the Toncoin blockchain and for blockchain-based domain names. Toncoin is developing a proxy server and it is expected that $TON will also be used to pay for access to the proxy server.

Management of Toncoin

Toncoin will also be used as a management token on the Toncoin blockchain. Anyone who owns Toncoin will be able to vote on proposals for the future of the network. The first vote for Toncoin took place in February 2023, when users voted to freeze $TON stored in inactive mining wallets. As a result of the vote, about 20% of Toncoin's holdings will be frozen for four years.

Toncoin investors can also use $TON tokens to confirm transactions on the network. The blockchain uses a proof-of-stake mechanism similar to Ethereum and other major networks. Currently, betting on Toncoin can be done directly on the network or through several major cryptocurrency exchanges, including Binance. Investors who bet on Toncoin will receive additional tokens as rewards.

Why the price of Toncoin has increased

Over the past 12 months, the price of Toncoin has increased by almost 80%, and in the last week alone, it has increased by 30%. The main reason for the price increase is that Telegram, the original inventor of Toncoin, has integrated a Toncoin wallet into its popular messaging app.

Telegram has over 700 million monthly active users, so the potential reach of Toncoin through this integration is huge. Many investors in Toncoin believe that Telegram's move will make more people interested in buying and using Toncoin, which will in turn lead to more demand for the coin and a higher price.

Overall, Toncoin is gaining momentum as the blockchain reaches important milestones in its development. The project successfully completed its first vote in February 2023 and has benefited from the addition of $TON coins to several Tier 1 exchanges. According to Etherscan, $TON is currently stored in more than 7,400 wallets.

Toncoin price history and price forecast

Toncoin initially distributed $TON coins through a public mining process that anyone could participate in. The mining took place from June 2020 through June 2022, and tens of thousands of developers, investors, and early adopters got their hands on $TON.

Before all available tokens were mined, trading of $TON began. According to CoinMarketCap, $TON traded at $0.50 in August 2021, and rose to $4.45 in November - a nearly 800% increase amid a bullish cryptocurrency market.

Tonkoin price chart

During the recession, $TON suffered along with the rest of the cryptocurrency market, and its price fell to $0.80 in June 2022. However, throughout 2022 and 2023, the token's price steadily increased as it gained more users and expanded its network infrastructure. During this time, trading volume typically ranged from $25 million to $100 million per day.

After the project's first management vote in the first half of 2023, interest in $TON waned and the price fell to $1.20 at the beginning of August. Following the integration of Telegram, $TON is currently trading at $2.50. In the last week, the token's trading volume totaled over $50 million.

Many investors are now wondering how high $TON can go. According to our forecast, Toncoin's price could reach $3 by the end of the year and $4.50 by the end of 2024. Our analysts are optimistic about Toncoin's momentum, especially the growing number of developers utilizing the Toncoin blockchain. The project also introduced the Ethereum-Toncoin bridge, which could further push the adoption of Toncoin and encourage more crypto investors and users of decentralized finance to try this new blockchain. Ultimately, we believe the price of Toncoin could reach $25 by 2030, which is 10 times the current value of Toncoin.

Toncoin's meteoric rise has left many investors wondering if there is still time to invest or if the price is already too high. We are optimistic and believe that Toncoin has the biggest potential among all cryptocurrencies in 2024, and here's why.

Telegram attracts developers

It's hard to overstate the importance of Toncoin's recent integration into Telegram. This messaging app is used all over the world and has over 700 million monthly active users. That's a huge network for Toncoin to tap into.

Importantly, developers want to create apps where their users are, and Telegram is an endless source of new users for the apps they create. Therefore, the Telegram integration will encourage more developers to move to Toncoin from other blockchains.

Especially at a time when Solana is struggling, Toncoin has the potential to attract the best developers to build the next generation of DeFi apps. The more development that happens on the platform, the more valuable $TON will become.

Upward momentum 

The timing for Toncoin's growth couldn't be better: the project is on the rise as analysts declare that the cryptocurrency winter is coming to an end. Toncoin's potential allows it to rise to a price above $3 by the end of the year, with forecasts suggesting its price could rise by more than 50% by 2024.

The dynamics of the network go beyond the immediate growth of the token price. Toncoin is showing growth in transaction volume, wallets that hold the token, and blockchain developers. These are all positive signs for the development of the ecosystem and lay the groundwork for even more price growth in the future.

Rewards for the TON bet

Toncoin investors can also benefit from the project by betting on $TON tokens. This is an easy way to earn interest in the form of additional $TON tokens, which can continue to increase in value as the project develops.

Currently, $TON tokens can be placed on several major cryptocurrency exchanges, so investors do not need to be a transaction validator themselves. This simplifies the placement process and ensures openness for all investors.
 

0 Comments Found

Leave us a Comment

Contact with Us

Usefull Link

Were you cheated by a broker?
Write to us