Key Takeaways
- Toncoin (TON) is the native cryptocurrency of The Open Network (TON), a decentralized Layer-1 blockchain.
- Telegram’s team originally began developing TON (then called Telegram Open Network) with a planned Gram token.
- In 2020, Telegram left the project due to SEC regulations, and Gram was never officially launched.
- The TON developer community took over, rebranding it as The Open Network with Toncoin as the native currency.
What Is Toncoin (TON)?
Toncoin (TON) is the native cryptocurrency of The Open Network (TON), a decentralized Layer-1 blockchain. It is an open-source network supported by a global community of developers and enthusiasts, including the TON Foundation, a Swiss non-profit.
The project has an interesting connection to Telegram, the popular messaging app. Telegram’s team began working on the codebase for TON, then known as the Telegram Open Network (TON), in 2017. The project also included a native cryptocurrency called “Gram.” However, in May 2020, Telegram founder Pavel Durov announced the platform’s withdrawal from TON due to a court order by the US Securities and Exchange Commission (SEC). This decision also meant the Gram token was never officially issued.
Following Telegram’s departure, the TON community stepped up, taking control of the project and rebranding it as The Open Network. Toncoin became the official name of the native cryptocurrency.
How Does Toncoin (TON) Work?
Toncoin (TON) is the native cryptocurrency of The Open Network (TON), a Layer-1 blockchain designed to be scalable and can handle many users. Here’s a breakdown of how the project works:
Blockchain
At its core, Toncoin uses blockchain technology, a system that distributes a ledger of transactions across a network of computers. Transactions are encrypted and chronologically chained, creating a secure and verifiable record.
Proof-of-Stake (PoS)
Unlike other cryptocurrencies, Toncoin relies on a Proof-of-Stake (PoS) mechanism to validate transactions and secure the network. In PoS, users stake their Toncoin holdings to become validators. Validators are responsible for verifying new blocks of transactions added to the blockchain. They are rewarded with Toncoin for their service, making it a more energy-efficient system than the Proof-of-Work (PoW) used by Bitcoin.
Sharding
Toncoin utilizes sharding to achieve scalability. Sharding essentially divides the network into smaller partitions called shards. Each shard processes its transactions, reducing congestion on the main network and enabling faster transaction speeds.
Toncoin (TON) Token And Tokenomics
Tokenomics
The TON token is Toncoin’s native cryptocurrency. It is used for:
- Transaction Fees
- Storage and Services
- Governance
Token Details
Total Supply ∞
Circulating Supply 3,473,209,469 TON
Current Price $5.74
Market Capitalization $19,932,946,556
This information is current as of May 16th, 2024, and the token’s price, market value, and available supply may fluctuate.
Distribution
Unlike many cryptocurrencies, TON was not distributed through an initial coin offering (ICO) or initial exchange offering (IEO). Instead, it aimed for a more organic distribution similar to Bitcoin.
Nearly all TON tokens were placed in special smart contracts called Giver contracts. Anyone could interact with these contracts to participate in “mining” TON. This mining period lasted for two years, ending in June 2022.
Where Can I Buy Toncoin (TON)?
Bybit – This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
KuCoin – KuCoin is a smaller exchange known for its competitive fees and support for many cryptocurrencies.
Gate.io – This exchange provides TON, other cryptocurrencies, and margin trading options.
Is Toncoin (TON) A Good Investment?
Pros
- Scalability – TON boasts impressive transaction speeds and the ability to handle a high volume of transactions, making it a contender for mass adoption.
- Privacy – The TON network prioritizes user privacy and utilizes zero-knowledge proofs, a cryptographic technique that allows verification without revealing underlying data.
- Large Ecosystem – TON offers a comprehensive ecosystem with services like payment processing, storage, and potentially even a proxy service.
- Community-Driven Distribution – The TON Foundation’s “Open League” program promotes community involvement by rewarding participation with TON tokens.
Cons
- Competition – The crypto landscape is crowded, and TON faces competition from established players offering similar functionalities.
- Dependence on Telegram Integration – While recent integration with Telegram is positive, TON’s long-term success might be tied to Telegram’s continued adoption and support.
Final Thoughts
Whether Toncoin (TON) is a good investment depends on your risk tolerance and goals. Remember, this guide only provides a starting point for your research. Always conduct your due diligence before making any investment decisions.
