How TON Emerged Among Leading Cryptocurrencies: A Guide for Investors

Currently, Toncoin ranks 9th on CoinMarketCap with a market capitalization of $19.6 billion. It’s used for transactions within the TON ecosystem, paying for various services, and gaming. Here’s a detailed look at TON’s history, investment opportunities, risks, and future plans.

History and Development of TON

Creation and SEC Challenges

In 2018, Pavel and Nikolai Durov, leading the Telegram messenger development team, decided to create a first-layer blockchain called Telegram Open Network (TON). This blockchain was intended to serve Telegram’s user base. Through a private token sale, they raised $1.7 billion. In 2019, the first test blockchain was launched. However, by the end of the year, the US Securities and Exchange Commission (SEC) filed a lawsuit against Telegram, halting further development. In 2020, the Durovs paused the project and compensated the initial investors.

Revival as The Open Network

Despite the pause, a team named NewTON decided to revive the project in 2020, using the original documentation. They renamed the testnet to Mainnet, and the development team became TON Foundation. The updated blockchain was called “The Open Network” (TON).

By 2021, the network’s development continued with the release of infrastructure components like node software, wallets, and block explorers. Security and performance improvements were also made. By the end of 2021, Toncoin was listed on cryptocurrency exchanges, making it accessible to investors.

Key Events in 2022

2022 was a pivotal year for TON and Toncoin. The cryptocurrency started trading on exchanges, increasing its availability. Cross-chain bridges were launched, linking TON with Ethereum and Binance Smart Chain, allowing transfers between different blockchains and expanding TON’s integration capabilities.

Telegram users could now send donations and pay for premium channels using Toncoin, boosting its demand among the messenger’s users.

Several key products were also launched in the TON ecosystem in 2022:

  • TON Nominators: A staking service with no minimum threshold.
  • TON DeFi: A suite of decentralized financial tools, including DEX and lending platforms.
  • TON Developers Program: Support for DApp developers with documentation and tools.
  • TON DNS, TON Payments, TON Proxy, TON Sites, TON Storage: Various functional solutions for blockchain interaction.

Major Achievements in 2023

In 2023, TON Foundation continued to enhance the ecosystem with updates and new products:

  • Token Bridge: A cross-chain bridge for token transfers between blockchains.
  • TON Connect: A protocol for secure connections between crypto wallets and decentralized apps.
  • Liquidity Staking: Earning income by providing liquidity in DeFi pools.
  • New DApp Developer Tools: Facilitating the growth of applications on TON.
  • Deflationary Mechanism: Token burning to limit emission and increase Toncoin’s value.
  • Encrypted Messenger Integration: Secure communication within the TON wallet.
  • Improved Address Format: More user-friendly TON addresses.
  • TON Virtual Machine Upgrade: Enhancing smart contract performance.
  • Token Distribution Management Tools: Lockup and vesting options.
  • Telegram Wallet Integration: Easier access to the TON wallet.
  • Wallet Pay: A payment system for goods and services via Telegram using Toncoin.

TON also set a new transaction speed record, processing nearly 105,000 transactions per second. Additionally, Ledger hardware wallet support was added for more secure cryptocurrency storage.

Investment Opportunities

TON operates on a Proof-of-Stake consensus algorithm, allowing Toncoin holders to earn rewards by staking. Running a validator node requires 300,000 TON (about $2.4 million at current rates). However, with TON Nominators, participating in staking is possible without significant investment. TON Nominators lets users join staking pools via Telegram, crypto wallets, or specialized platforms.

As the technology and user base grow, investment opportunities diversify. Besides staking and trading, there’s potential in developing network infrastructure, new applications, and services on TON, offering additional income sources for active ecosystem participants.

Another investment approach is trading Toncoin on exchanges like Binance, OKX, and Uniswap. Interest in Toncoin surged in early 2023 when it was used for Telegram channel payments. According to new policies, 50% of ad revenue in channels goes to administrators in TON, increasing demand and boosting its price.

Investment Risks

Investing in TON, like any cryptocurrency, involves risks that need consideration.

Regulatory Pressure

A major risk is potential regulatory pressure. In 2019, the SEC sued Telegram, accusing it of violating securities laws during the initial TON token offering, halting the original project. Future regulatory actions could have legal consequences:

  • Fines and sanctions against TON and its developers.
  • Restrictions on Toncoin trading.
  • Decreased investor and user trust due to legal uncertainty.
  • Potential lawsuits.

Market Volatility

Toncoin’s price, like any crypto asset, is subject to market conditions. Movements in Bitcoin’s price, the leading cryptocurrency, significantly influence the entire market. Sharp BTC price drops typically lead to declines in altcoin prices, including Toncoin.

Project-Specific Risks

Technical issues, cyberattacks, code errors, and internal conflicts within the TON team could negatively impact the network and Toncoin’s price.

Access Loss

There’s also the risk of losing access to crypto assets due to improper storage or lost keys. Using hardware wallets and secure data protection methods mitigates this risk.

Future Plans

TON Foundation has ambitious plans for further ecosystem development:

New Products and Features:

  • Introducing a stablecoin tied to real assets like the US dollar.
  • Developing a web browser integrated with the TON blockchain for decentralized internet access.
  • Creating more tools for DApp developers to enhance functionality and increase ecosystem products.
  • Adding features to the TON wallet, including payment system integration, improved interface, and security measures.

Network Optimization and Scaling:

  • Updating core infrastructure components like TON Virtual Machine (TVM) for better smart contract performance.
  • Increasing blockchain throughput to support more transactions per second.
  • Enhancing decentralization by encouraging new node and validator launches.

Partnerships and Ecosystem Expansion:

  • Collaborating with financial and tech companies to integrate their products and services with TON.
  • Establishing connections with other blockchain projects for cross-chain solutions and compatibility.
  • Attracting new developers and participants to increase DApp numbers in the ecosystem.
  • Promoting TON’s use in the real economy through partnerships with various industry companies.

Conclusion

TON is a promising blockchain project with its cryptocurrency, Toncoin. It boasts a developed infrastructure, including nodes, wallets, DeFi solutions, and supporting tools. Toncoin is traded on major exchanges and has high liquidity.

However, there are risks from regulatory pressure and market fluctuations. Thoroughly consider these risks and be prepared for potential losses.

Investor Recommendations:

  • Study the TON roadmap and development plans, assessing their feasibility and prospects.
  • Decide on a strategy—staking, trading Toncoin, or a combination.
  • Weigh all risks and allocate funds to ensure potential losses aren’t critical. Keep abreast of market news and trends, as the situation is dynamic.
  • Only invest discretionary funds you’re willing to risk for potential profit. This article is for informational purposes only and not financial advice.

If you share the vision of the TON Foundation team and believe in the platform’s prospects, investing in this asset could be a wise choice. However, diversification remains the golden rule for any investor.

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