Toncoin (TON), a cryptocurrency developed messaging app Telegram, has recently surged to become one of the top 10 largest cryptocurrencies market capitalization. This remarkable rise in price can be attributed to several factors.
Originally known as the Telegram Open Network, the blockchain project was created Telegram in 2018. However, due to a lawsuit from the US Securities and Exchange Commission (SEC) in 2019, Telegram was forced to abandon the project. The blockchain project was renamed The Open Network (TON) and is currently community-run and open-source.
On September 14, 2023, Pavel Durov, the founder and CEO of Telegram, announced that the TON wallet would be integrated into the messaging app. This means that Telegram users can now download the TON wallet on their app and easily store, buy, sell, and trade cryptocurrencies directly within Telegram.
This announcement led to a significant increase in Toncoin’s price, with a 40% surge within a week. Within the past 30 days, Toncoin has gained about 87%, pushing its market capitalization to over $8.5 billion, surpassing well-established blockchain networks such as Solana, Tron, Polygon, and Litecoin.
TON is a decentralized and open internet platform that consists of various components, including the TON blockchain, TON domain name system, TON storage, and TON sites. The TON blockchain operates as a layer-one blockchain using the proof-of-stake (PoS) consensus mechanism. Its goal is to become a fast, secure, and scalable network capable of handling millions of transactions per second at minimal costs.
What sets TON apart is its unique combination of proof-of-stake (PoS) and proof-of-work (PoW) algorithms. When Telegram abandoned the project, the tokens were placed in special PoW giver smart contracts, allowing anyone to mine the cryptocurrency. TON’s PoW distribution process differentiates it from other cryptocurrencies that conducted initial coin offerings.
With the successful integration of the TON wallet into Telegram, the demand for Toncoin is expected to increase as more users engage in buying, trading, and exchanging cryptocurrencies directly within the messaging app. Additionally, the TON blockchain roadmap indicates future developments, including cross-chain bridges to Ethereum, BNB Chain, and Bitcoin blockchain.
The TON community has overcome obstacles to make TON one of the most significant blockchain projects globally. With Telegram’s support and the integration of the TON wallet, the TON blockchain has the potential to reach a broader audience and introduce blockchain and cryptocurrency technologies to a wider user base.
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