TON crypto review

Toncoin network Analysis, Price, Prediction, Wallet Review

22.09.2022 10:58 (Updated 12.01.2023 11:01)
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by Aleksandar Đurić
13 min read

Toncoin (TON)

Toncoin Price

the-open-network
Toncoin (TON)
Rank: 23
$ 2.34
Price (BTC)
Ƀ0.00010185
Marketcap
$ 3.45 B
Volume
$ 33.99 M
24h Change
2.99%
Total Supply
5.06 B TON

Toncoin to USD Chart

Converter TON to USD

TON Coin Price Prediction

According to the CoinCodex Toncoin price forecast, the value of Toncoin will increase by 4.58% and reach $2.15 by January 2, 2023. The current sentiment is bearish, while the Fear & Greed Index indicates 28 (Fear). Toncoin recorded 19/30 (63%) green days in the last 30 days (December 2022), with a price volatility of 14.84%.

TonCoin price prediction chart

Comparing Toncoin to other major technological innovations and trends is another way to predict where the Toncoin price might be headed in the long run. The table above shows what the Toncoin price would be at the end of 2023, 2024, and 2025 if its growth followed the growth of the Internet or major tech companies like Google and Facebook in their growth phase.

In the best case scenario, the TON price forecast for 2025 is $11.25 if it follows the growth of Facebook. If Toncoin follows Internet growth of the Internet, the prediction for 2025 would be $2.22.

TON crypto analysis

Every blockchain project wants to introduce real-world applications of decentralized technologies to the masses and achieve mainstream adoption. But, only a very few develop products and services fit for the daily lives of ordinary people. 

The challenge arises when blockchains can’t scale and lack the necessary speed to appeal to the mass market. While Bitcoin and Ethereum networks are efficient on a decentralized scale, their transaction fees are unpredictable, making them non-ideal for everyday value exchange. 

Further, the user experience in many dApps is broken. People new to the crypto ecosystem find it challenging to buy, sell, and manage their crypto assets. And what makes it worse is that users need to use multiple wallets to tap into specific applications built on different blockchains. 

While the user experience is getting better with every iteration, the consumer market for blockchain solutions is not growing at the pace we expected. Most of the interest comes from investors looking to catch the next big trend. As a result, mainstream users are not exposed to crypto assets and their benefits. 

This is where TON blockchain comes in. Designed by the founders of Telegram, the TON blockchain has all the technical capabilities necessary to scale to million transactions per second at minimal fees.

TON aims to accompany all blockchains under one network, to create a self-sustaining and environmentally friendly decentralized ecosystem. Having a ready user base of 700 million to plug into, TON is also primed to be amongst the leading blockchains to drive mass adoption. 

In this analysis of the TON crypto project, we will uncover the story of Telegram Open Network, the technology supporting its vision, the use cases driving adoption, and the future of the Toncoin cryptocurrency. 

Origins of Telegram Open Network  

The Durov brothers, Pavel and Nikolai, are the ones who initially, in 2017, came up with the idea to build a blockchain system that allows Telegram users worldwide to exchange value in a peer-to-peer manner. 

When Telegram announced its blockchain plans, the entire industry took notice. It was the first time that a successful company of that magnitude proposed blockchain solutions for the masses. And there was no resistance from the pioneers of crypto, as everyone chose Telegram as the go-to platform for messaging and managing community activities.  

Telegram origins  

To aid TON blockchain development, Durov planned an Initial Coin Offering (ICO) with a hard cap of $1.2 billion. In the beginning, he was looking at raising capital from accredited investors. Seeing the user base of 200 million, investors from top VCs were eager to participate in the pre-ICO fundraiser. Sequoia Capital, Lightspeed Ventures, Ribbit Capital, and Benchmark were among the leading investors. 

After quickly raising $850 million, Durov wanted to conduct a second pre-sale, raising the hard cap to $1.7 billion. As tokens were offered at a 30-80% discount, the shares sold out like hot cupcakes, with investors flipping for double-digit returns in the secondary market.

SEC Legal Battles Begin 

While the entire crypto community was excited to buy GRAM tokens in public sale, the SEC came out of nowhere in 2019 to hand Telegram a complaint for violating federal securities laws. After a long legal standoff, Telegram decided to settle. Telegram agreed to pay back more than $1.2 billion to investors and an additional $18.5 million for a civil penalty. 

The SEC also took a harsh stance on not allowing Telegram to engage in the unregistered distribution of GRAM tokens outside the US. They wanted to completely shut off access to the TON platform and eliminate every way possible for a US citizen to buy a GRAM token. 

This obviously didn’t sit right with Durov. He understood that US decision-makers had too much power and were not going to allow a digital token to undermine the US Dollar. In his last post regarding TON, Durov announced that Telegram would no longer be actively engaged on any level with the development of TON. 

But what happened to the money? Telegram closed the refund chapter in 2021 after paying back non-American investors $1 billion in capital raised from Telegram’s bond sale. American investors were only offered 72% of their investment, which accounted for $425 million. 

Community Takes Over 

Durov was shown the door by the US regulators. But his vision of decentralization lived on. Many developers in Russia formed an alliance to revive the TON project by continuing to build the blockchain using the available open-source code. They soon renamed the project FreeTON Network. 

Seeing TON blockchain make its comeback, many institutional investors and developers across the crypto space showed interest. The TON foundation behind FreeTON is TON Labs, backed by Runa Capital, BR Capital, and Bitscale Capital. TON Labs has delivered operating systems for developers to access the TON blockchain and create new decentralized applications. 

The co-founders of TON Labs are Alexander Filatov, Mitja Goroshevsky, Dmitry Malyugin, and Pavel Prigolovko. In 2021, Cyril Paglino joined the team as CEO and later took on the role of a partner heading business development. 

What is TON Blockchain Anyway 

Telegram Open Network, now rebranded as simply The Open Network, is a collection of proof-of-stake blockchains, namely, masterchain, workchain, shardchain, and vertical blockchain. Each of them plays a crucial role in enhancing the scalability and functionality of the TON ecosystem. Let’s see how. 

What is TON Blockchain

Master Chain

The master blockchain is one of the most important components of the TON network. It is responsible for designing rules and parameters for validators to participate in the PoS consensus and generate new blocks. It is also a storage unit for hashes belonging to workchains and shardchains. 

Work Chain 

TON can accompany close to 4.3 million workchains. These are unique blockchains that contain information regarding transaction data transmitted through smart contracts. Each work chain can have its basic cryptocurrency and virtual machine, allowing for heterogeneity among blockchains. 

Shard Chain 

Shardchains are basically sub-blockchains of workchains, meaning a shardchain is formed when a workchain is divided. With these shardchains, TON aims to achieve scalability at low transaction costs. According to the whitepaper, the method used is described as Infinity Sharding Paradigm. 

Vertical Chain 

Vertical blockchains work alongside shardchains. When a block generated on shardchain is incorrect, TON uses a verticalchain to insert a new block or its difference. This mechanism stands out from other blockchains as TON doesn’t allow forks to happen when invalid blocks are detected. 

So, we know what TON is and how it works — now it’s time to dive into some of the use cases it has developed over the years.

Use-Cases of TON Blockchain 

TON blockchain and its networking technologies have come up with many decentralized services that could significantly impact the Internet as we know it. Let’s dive into some of them in detail.

TON blockchain use cases

TON Storage 

TON storage technology can facilitate the storage of files off-chain and enforce their availability with the help of smart contracts. So, you can securely store your files while ensuring they don’t get into the wrong hands. 

TON Proxy 

The applications of the TON blockchain are not truly decentralized because of their reliance on off-chain infrastructure. TON proxy came into the picture to offset this added degree of centralization. It adds a privacy layer for TON nodes to fight against censorship. 

TON DNS 

TON DNS is an on-chain hierarchical naming service that allows users to register a username to surf the web in the simplest manner. It is also beneficial for transferring cryptocurrencies, as you cannot go wrong with a name as you can with a 256-bit address identifier. 

TON Payments 

When using TON payments, you are creating trustless payment channels for instant microtransactions. You can make P2P transfers in less than five seconds, at extremely low fees, and without depending on an intermediary. 

TON NFTs 

TON Diamonds is an NFT marketplace built on the TON blockchain. It features high-quality NFT collections from renowned artists like Ellen Sheidlin. To buy an NFT, you must use the native token TON. The blockchain also supports another marketplace called Disintar

These use cases leverage the TON token as a medium of exchange. But do you know the details of its economic model? Let’s find out. 

Toncoin Tokenomics 

Toncoin latest stats

When the SEC stopped the Telegram messaging app from issuing unregistered securities, five billion tokens were already mined and placed in the testnet smart contract. In 2021, based on the TON community consensus, the testnet was promoted to mainnet. 

To distribute the mined tokens, TON follows a meritocratic model. It allows community members to make proposals for grants. So, it essentially rewards those who add the most value and help grow the TON blockchain ecosystem. You should participate in the network as a validator for staking new tokens. These new tokens account for 0.6% inflation. 

Toncoin is also well integrated into all verticals of the TON blockchain. It is primarily used for transaction fees and on-chain governance programs. Beyond that, Toncoin is the centerpiece of TON proxy and storage payments. 

How To Stake TON Coins?

How to stake TON?

Anyone with a powerful server and a large amount of TonCoin can become a validator. Yet, if it’s not the case and you don’t want to secure the network while being rewarded with Ton, you can become a nominator. Nominators lend their assets to validators Ton Nominators Pools for the network to grow. For the pool to generate income, the total stake should exceed 300,000 Ton. And if the pool exceeds 900,000, then the excess will not be considered in the reward calculation. So users must choose the pool wisely. The Ton coin nominator chooses a staking validator pool, lends the coins according to the pool settings, and receives the yield.

To perform this, you need to visit the Ton Nominators Pools website and choose a Nominator pool, depending on how much Ton you are willing to stake. The smallest amount you can stake is 10,000 Ton. Review the pool by clicking on the “Deposit” button. Press the “ADD STAKE” button or scan the QR code using Tonkeeper or any other TON Wallet. Do not send assets directly from exchange wallets, or your fund will be lost!

TonCoin nominator pool

After you are transferred to the wallet, you need to accept the transaction. If the wallet does not open automatically, you can send the transaction manually by copying the pool address.

TON Web Wallet: @Wallet Review

Ton provides a comprehensive list of blockchain-based crypto wallets divided into custodian and non-custodian. You can find the list here. We chose @Wallet because it’s effortless to use in your Telegram web browser extension, but if you decide it, you give up control of your private keys and funds to TON, which is a good option for beginners. As we mentioned before, you must use a TON wallet to stake your TON, and @Wallet is suited for that.

TON web wallet: @Wallet

@Wallet is a Telegram web extension bot. You can buy cryptocurrencies via exchange or bank transfer. You also can store, send and receive your assets with it—all of that happening right in the Telegram app, which is a big bonus.

You can attach your wallet to the top of the Telegram chats. To verify your account, you must share your phone number. After this step, you can buy crypto with your bank card by clicking on the “Open Web App” button and then the “Buy” button. At the time of writing, only two options are available: BTC and TON.

Buy Toncoin via @wallet with credit card

To receive TON or BTC, you must click “Deposit,” and you’ll see the Wallet bot address. Or click “Open Web App” and send the QR code or copy the Wallet bot address. The same goes for sending your crypto.

Receive Toncoin via @wallet

There is also a P2P trading option within the @Wallet. To try it, you should click the “P2P Market” button, go to “Payment Settings,” and “Add Your Payment Method.” You can buy TON or BTC from the users or sell it by creating an Ad. You should fill in the parameters of the ad when making it and publishing it.

Buy from people button @wallet

An extensive review on Toncoin @Wallet: Exchanging crypto via TelegramBot: Is it dangerous and how to protect yourself from scams?

Crypto Influencers Who Joined TON Blockchain Bandwagon

TON community

TON has amassed a massive following online across social media. The TON community channel on Telegram has 640k+ members.

This continuous rise in public interest comes from the content created by some of the biggest crypto influencers and thought leaders. Through videos, tweets, and blogs, influencers promoted the TON network as the next big layer-1 blockchain primed to achieve scalability.

Many YouTubers did project reviews of TON blockchain. A Russian YouTuber, Kharchevnikov, published a video comparing TON with Bitcoin. He has a massive subscriber base of 1.18 million.

Another YouTuber in America called Michael Wrubel also did a video about TON, saying it could be the next Cardano layer-1 blockchain. Michael has a following of over 310,000 on YouTube.

Along with influencers covering TON, we also saw the leadership team of TON Labs conducts several interviews with leading crypto shows. One of them is Crypto Coin Show. In one of the interviews, the co-founder and CEO of TON Labs, Alexander Filatov, sat down with Ashton Addison to talk about the recent developments of TON and its roadmap.

The Road Ahead 

The Open Network and native token TON have successfully created a go-to-market strategy that is more compelling to the masses. Compared to other layer-1 blockchains like Ethereum, it is evident that TON is technically superior in transaction speed and fees. It is also not compromising on decentralization, as every token distributed is earned through contests. 

Without the SEC court case, the developments on TON would have been much faster, But the community is still strong and thinking long-term about driving real adoption. We will soon see complete tooling and easy-to-use apps built using the TON blockchain, which will aid existing solutions and grow the Web3 crypto world.

Authors

  • An experienced journalist working in the film and video-game industries for many years. An enthusiast busy with learning new things about the world of crypto every day. Majored in English Language and Literature. Has a shrine in his apartment dedicated to Hidetaka Miyazaki.

  • I am Karthikeya and with my knowledge and skills in crypto content writing, blogging, and storytelling, I bring visionary dreams to reality. On tradecrypto, I am going to write my learnings about NFTs, DAOs, and everything crypto. You can read me also on Ledger and ItsBlockchain.

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