What is Toncoin? A comprehensive guide

What is Toncoin?

Toncoin, introduced in 2018 by Telegram, a widely used messaging platform, is a blockchain network. It secured $1.7 billion in private funding to establish a blockchain platform aiming to rival Ethereum. The abbreviation 'ton' stands for The Open Network.

However, prior to Toncoin's official launch, Telegram ceased development on the project. This decision came after the US Securities and Exchange Commission (SEC) filed a lawsuit against Telegram, alleging that $TON constituted a security.

Following Telegram's withdrawal from the project, independent developers took over. Newton, now known as Toncoin, assumed control of the ton.org domain name and the Toncoin code repository in 2021. During the same year, Toncoin introduced the Toncoin blockchain and the $TON token.

Despite its independence from Telegram, Pavel Durov, Telegram's founder and CEO, discussed Toncoin on Telegram in 2021. He endorsed Toncoin while emphasizing that Telegram has severed all financial and technological ties with $TON.

What purpose does Toncoin serve?

The $TON token serves various crucial functions within the Toncoin blockchain ecosystem.

Paying for transaction fees

$TON is the sole token accepted for most transactions on the Toncoin blockchain, including processing fees, data storage costs, and acquiring blockchain-based domain names. Additionally, it's anticipated to be utilized for accessing the proxy being developed by Toncoin.

Toncoin governance

$TON serves as a governance token, enabling token holders to participate in voting on network proposals. Notably, a significant vote in February 2023 resulted in the freezing of a portion of the Toncoin supply found in inactive mining wallets.

Staking

Toncoin investors have the option to stake their $TON tokens for validating transactions on the network. Staking can be performed directly on the network or through various crypto exchanges, yielding additional tokens as rewards.

What's driving the increase in Toncoin price?

Toncoin has seen a significant surge in price, rising nearly 80% in the past year and 30% in the last week alone. The primary catalyst behind this increase in $TON value is the integration of the Toncoin wallet into Telegram, the messaging app that originally created Toncoin.

With over 700 million monthly active users, the integration of Toncoin into Telegram holds vast potential. Investors are optimistic that this move will attract more users to purchase and utilize $TON, thereby boosting demand and subsequently raising its price.

Moreover, Toncoin's momentum has been fueled by significant development milestones. The successful vote in February 2023 marked a key achievement, alongside $TON's listing on multiple Tier-1 exchanges. Data from Etherscan indicates that over 7,400 wallets currently hold $TON, indicating growing interest in the cryptocurrency.

Toncoin price evolution & forecast

Toncoin initially distributed $TON coins through an open mining process accessible to anyone from June 2020 to June 2022, distributing tokens to numerous developers, investors, and early adopters.

Trading of $TON commenced before the completion of token mining. Data from CoinMarketCap indicates that $TON was valued at $0.50 in August 2021, surging to $4.45 by November, marking an approximately 800% increase during the crypto bull market.

$TON, like much of the cryptocurrency market, faced significant declines during the downturn, plummeting to $0.80 by June 2022. However, it steadily climbed throughout the remainder of 2022 and into 2023, gaining traction with more users and strengthening the network infrastructure. During this period, daily trading volume typically ranged between $25 million and $100 million.

Interest in $TON diminished in the first half of 2023 following the project's inaugural governance vote, causing the price to drop to $1.20 in early August. Today, with the Telegram integration, $TON has risen to $2.50 and continues to climb. Trading volume for much of the past week has exceeded $50 million.

Many investors now wonder how high $TON can rise. According to our Toncoin price forecast, the token could reach $3 by the year's end and $4.50 by the end of 2024.

Our analysts are optimistic about Toncoin's momentum, especially with the growing number of developers contributing to the Toncoin blockchain. Additionally, the project has introduced an Ethereum-Toncoin bridge, which may boost Toncoin's adoption and attract more crypto investors and DeFi users to explore this new blockchain.

Ultimately, we predict that $TON could potentially reach $25 by 2030, representing a tenfold increase from its current price.

Is it advisable to invest in Toncoin?

As Toncoin continues its upward trajectory, investors are debating whether it's still a viable investment opportunity or if the price has peaked. Our outlook on $TON remains optimistic, considering it as one of the most promising crypto tokens for 2024. Here's why:

Telegram integration

The recent integration of Toncoin with Telegram holds significant potential. With over 700 million monthly active users, Telegram provides Toncoin with a vast user base to tap into. This integration is likely to attract more developers to the platform, as they tend to build where the users are. Toncoin could emerge as a top choice for developers, particularly amidst the struggles faced by other blockchains like Solana.

Bullish momentum

Toncoin's bullish momentum coincides with the end of the crypto bear market. Analysts predict a turnaround, and Toncoin's surge aligns with this sentiment. Our price prediction suggests that Toncoin could reach $3 or higher by the year's end and could see gains exceeding 50% in 2024. This momentum is not only reflected in token price gains but also in increased trading volume, wallet adoption, and developer activity, indicating a growing ecosystem.

Staking rewards

Investors can further benefit from Toncoin by staking their $TON tokens. Staking offers a straightforward way to earn additional $TON tokens as rewards, which could appreciate in value over time as the project expands. With $TON staking available on major crypto exchanges, investors have easy access to this earning opportunity.

Where to purchase Toncoin?

Toncoin can be acquired through various prominent cryptocurrency exchanges. These platforms facilitate the purchase of $TON, even for investors who do not currently hold any cryptocurrency.

Let's delve into the top two platforms for buying Toncoin at present.

1. Coinbase—Leading US-based exchange providing instant purchase of $TON with credit cards

Coinbase stands as the largest cryptocurrency exchange in the US and is regarded as one of the safest options for US residents seeking to buy Toncoin. The exchange offers various methods to swiftly convert fiat currency into $TON with minimal fees.

The most convenient approach to purchasing $TON on Coinbase is through its instant buy feature. This functionality allows users to easily select the desired amount of $TON and proceed with the purchase using a credit or debit card, akin to any typical online transaction.

Alternatively, proficient users have the option to deposit funds into their Coinbase account via a card, bank transfer, or cryptocurrency transfer. Subsequently, they can utilize Coinbase's trading platform to purchase $TON at the prevailing spot price. Although this method entails a slightly more intricate process, it remains user-friendly and boasts the lowest trading fees.

Upon acquiring $TON, users can securely store it in a custodial wallet within Coinbase. Alternatively, Coinbase offers its proprietary self-custody wallet, allowing users to download and store their $TON tokens securely or utilize them for various purposes such as DeFi.

While Coinbase presently does not support $TON staking, it offers a plethora of other advantages for investors. For instance, users have the opportunity to earn tokens by simply learning more about them. Additionally, investors can accrue crypto rewards through Coinbase's credit card program.

Renowned for its robust safety measures, Coinbase is headquartered in the US and holds a NY BitLicense, which is widely regarded as the epitome of regulatory compliance in the crypto industry.

2. Binance, the world’s foremost cryptocurrency exchange, stands out for its minimal fees and support for $TON staking

Binance, being the leading global cryptocurrency exchange and a prominent center for DeFi tokens like $TON, provides some of the most competitive trading fees in the market. It offers investors the option of an instant buy feature or spot crypto trading, both of which are user-friendly and entail trading fees starting from as low as 0.1%.

Binance accepts a wide range of payment methods, including credit cards, debit cards, bank transfers, crypto transfers, e-wallets, and more. Almost all popular payment methods are supported at Binance.

A notable advantage of purchasing $TON on Binance is its support for $TON staking. This allows Toncoin investors to buy the token and immediately engage in staking to earn interest. Binance offers competitive interest rates and has a strong reputation for securely managing staked tokens.

Furthermore, Binance provides numerous features for advanced investors, such as a DeFi-friendly crypto wallet, an NFT marketplace, and a launchpad for discovering promising new crypto tokens.

It's worth mentioning that Binance.US, the US-based branch of Binance, has temporarily halted fiat deposits. Therefore, investors in the US may need to consider alternatives, as Binance may be more suitable for those outside the US.

In conclusion, Toncoin, initially conceived by Telegram, has emerged as a dynamic cryptocurrency attracting considerable attention from investors and developers. Its recent integration with Telegram provides access to a vast user base exceeding 700 million.

With promising prospects, Toncoin is anticipated to be among the top-performing cryptocurrencies in the coming years. Interested investors can purchase Toncoin through Coinbase or Binance, seizing the opportunity to participate in this evolving project.