07/10/2024

What is Toncoin? Everything You Need to Know About TON Cryptocurrency

Toncoin (TON) is a cryptocurrency built on the Open Network blockchain platform. It is designed to provide high transaction speed and support a variety of decentralized applications within the TON ecosystem, which is closely integrated with Telegram – a messaging app that has evolved far beyond a simple messaging platform.

From May 2020 (when the Toncoin token was first launched at 10 cents) to May 2024, the TONCOIN/USD exchange rate increased by 6300%, securing Toncoin a place among the top 10 cryptocurrencies by market capitalization.

In this overview, we will cover everything you need to know about Toncoin:

What Is Toncoin?
What Is Toncoin Used For?
Why Is The Toncoin Price Rising?
Toncoin Price History & Price Prediction
Should I Buy Toncoin?
Where to Buy Toncoin?
FAQ
How to Learn to Trade Toncoin

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What Is Toncoin?

Toncoin is a cryptocurrency created by the Telegram team, led by Pavel Durov.

The main idea behind Toncoin is to establish a decentralized network capable of processing millions of transactions per second, making it an attractive alternative to other popular cryptocurrencies like Bitcoin and Ethereum.

More and more people are interested in what Toncoin is

According to Google Trends, more and more people are interested in Toncoin. However, do not confuse Toncoin with Notcoin, as these tokens have similar names and are both associated with Telegram. To learn about the gaming token Notcoin, read the article: What Is Notcoin? Next, we will delve into what Toncoin means in more detail.

The project started in 2018 and was originally named Telegram Open Network (TON). A test network was launched in November 2019:

At that time, the Telegram team conducted one of the largest initial coin offerings (ICOs), raising over 1 billion US dollars. However, the project faced legal obstacles from the U.S. Securities and Exchange Commission (SEC), which claimed that Telegram’s ICO was conducted without the necessary registration and was a violation of U.S. securities laws.

Toncoin is a cryptocurrency whose launch faced objections from the SEC

The dispute was settled in 2020, with Telegram being forced to pay a fine and return funds to investors. However, work on the project continued within an independent community of developers.

The blockchain was renamed The Open Network. The network launched in May 2020, with Toncoin starting at around 10 cents USD per token.

What Is Toncoin Used For?

Toncoin is a rapidly successful attempt to create a universal blockchain platform for a wide range of applications, from micropayments to decentralized data storage.

In November 2023, Pavel Durov announced that cryptocurrency TON is the fastest blockchain in the world, emphasizing its unmatched scalability compared to competitors.

Ton - the fastest blockchain in the world

The special feature of Toncoin lies in its integration with various features and services, such as decentralized applications (DApps), smart contracts, and privacy functions. This transforms the blockchain into not just a means of exchange, but also a platform for developers who can utilize it to create innovative projects and services.

Examples of practical implementation:

Advertising payments on Telegram. Since the start of 2024, users of the messenger can use Toncoin to pay for advertising slots within Telegram.
Purchasing user names. To do it, you can use a service called Fragment, which holds auctions for the sale of short and unique user names on Telegram.
Transactions and transfers. Toncoin can be used for fast and secure transactions within The Open Network blockchain, providing an alternative to traditional payment systems.
Participation in decentralized applications (DApps). Toncoin is used within these applications for various operations, including games, social networks, and other services.
Other methods: staking, integration with other cryptocurrencies and platforms, participation in voting.

Let’s explore three specific use cases for the TON token in more detail:

✓ Paying for Transaction Fees
✓ Toncoin Governance
✓ Staking

Paying for Transaction Fees

The use of the Toncoin blockchain includes:

transfers between users,
executing contracts,
other operations that require network processing.

In these cases, the network charges a fee. In other words, if you use the Toncoin network, you need to pay in $TON, which increases the token’s value.

Toncoin Governance

$TON is not just used as the currency for transactions on the Toncoin blockchain; it also acts as a governance token. This means that every $TON holder gets a say in decisions that shape the network’s future.

A great example of this came in February 2023, when $TON holders voted on what to do with a large number of tokens found in inactive mining wallets. The community voted to freeze these tokens for four years, locking up nearly 20% of the total Toncoin supply. This vote underscored the important role $TON plays in network governance.

Staking

Investors in Toncoin can stake their $TON tokens to participate in transaction validation on the network. The Toncoin blockchain operates using a proof-of-stake (PoS) mechanism, similar to that used by Ethereum and other major networks.

To gain a deeper understanding of how Toncoin is utilized in staking, please refer to our article: What Is Staking and How to Stake Crypto?

Why Is The TON Price Rising?

The historical price chart of Toncoin, based on CoinMarketCap data, shows a sharp price increase in 2024, reaching a peak around $7.6.

Toncoin’s price growth in 2024 can be attributed to several key factors:

the rapidly growing Telegram user base, which neared 1 billion users in 2024;
expanding functionality for the Telegram Wallet, integrated directly into the messenger;
the launch of the Telegram Ads marketplace, with payments made in Toncoin;
an increasing number of users holding Toncoin (over 30,000).

One negative factor that led to a decline in Toncoin’s price in 2024 was the temporary detainment of Pavel Durov by French authorities. However, given the strong fundamentals, there are reasons to believe that Toncoin’s price may continue to rise in the future.

Toncoin Price History & Price Prediction

Let’s load the daily TONUSDT chart, which reflects Toncoin’s price dynamics over the available period:

The chart shows that:

Toncoin’s price fluctuated for a long time (flat stage) around $2.22 per coin.
It was followed by a rally. On February 28, Toncoin experienced a significant price surge, which can be described as an impulse breakout from the flat stage. It was triggered by Pavel Durov’s announcement that Telegram would allow advertising in 100 new countries, sharing 50% of ad revenue with channel owners in Toncoin via the TON blockchain.
The rally peaked at around $7.5 per coin, followed by wide bars at high volumes.
Consequently, the price action established a broad range between $4.9 and $7.0, confirmed by volume fluctuations on the market profile indicator.

Overall, such price behavior may indicate that the increase in Toncoin’s value in the first half of 2024 was driven by:

Confirmation of the coin’s value for the advertising market on Telegram (with 800 million active monthly users, and this number is expected to reach 1 billion by the end of the year).
Bullish sentiment in the broader cryptocurrency market, supported by the approval of ETFs for BTC and ETH.

The formation of a bulge in the market profile suggests that the amounts of supply and demand are increasingly accounting for new factors affecting Toncoin’s price. The TONCOIN/USDT market is entering a consolidation phase following a significant growth period (over +250% in 44 days starting from April 28). Given the range between $4.9 and $7.0, it is likely that Toncoin’s price may stay within this range until the end of 2024.

Toncoin Price Prediction

Toncoin’s market capitalization exceeds $20 billion, making it one of the top 10 cryptocurrency assets (at the time of writing). Despite this, authoritative sources are not rushing to publish a large number of Toncoin price forecasts.

Analyzing information online, Toncoin price predictions for different time horizons vary widely. However, analysts generally agree on Toncoin’s future price growth:

CoinEdition suggests that Toncoin could replace Ripple in the future.

According to their forecasts:

Toncoin could reach $19.68 by the end of 2024 if scenarios are optimistic;
Toncoin could reach $25 in 2025;
The price of Toncoin could rise to $52.64 by 2040.

Technopedia predicts that with positive market sentiment and growing developer activity around The Open Network:

Toncoin could reach $25 by 2030.

CoinCodex, drawing insights from historical cryptocurrency price trends and Bitcoin halving cycles, predicts that given favorable conditions:

Toncoin’s price could hit $30.10 by 2025;
by 2030, Toncoin’s price could be around $26.13.

Flitpay highlights the surge in active TON wallets, from 513,041 to 3,173,718 in just three months (from February 2024 to April 2024), signaling rapid growth in the TON user base. The Toncoin forecast is based on the coin’s future demand:

By 2040, Toncoin’s price may range from $186 to $212.
Predictions for 2050 vary from $312 to $458, reflecting the potential long-term growth and increased adoption of the TON network over decades (FlitPay).

Naturally, forecasts are speculative. Therefore, when assessing the outlook, conduct your own research and make informed decisions: whether to buy Toncoin and what its future price may be. Always manage risks and have a backup plan.

Should I Buy TON?

In May 2024, Pantera Capital invested five billion dollars into The Open Network (TON) blockchain, stating that “TON has the potential to bring cryptocurrency to the masses.”

This decision by a leading venture capital firm is likely to reassure those who may still be on the fence about buying Toncoin. Here are a few more factors to consider.

Attracting Developers with Telegram’s User Base

Toncoin is the native token of the world’s leading blockchain in terms of daily active addresses:

Increase in active addresses on the TON blockchain

Several factors have contributed to this growth, including:

the rise of gaming applications on the TON blockchain, like Notcoin and Hamster Kombat.
open Network Ventures’ launch of a $40 million fund to support early-stage crypto projects within the TON ecosystem.

Bullish Momentum as Crypto Bear Market Wanes

In January 2024, the SEC approved investments in a Bitcoin-based ETF, significantly increasing interest in cryptocurrencies. By September of that same year, market participants believed the Federal Reserve had started a cycle of interest rate cuts, which made riskier assets, including cryptocurrencies, more attractive.

Given this context, it is reasonable to suggest that Toncoin’s price growth could outpace that of Bitcoin, which analysts from firms like Standard Chartered predict could rise to $100,000.

$TON Staking Rewards

Participating in staking not only helps stabilize and secure the network but also creates potential passive income through reward earnings.

Staking Toncoin offers investors a way to mitigate the potential risks of their investments. Think of staking rewards as dividends from owning shares in a profitable company.

Toncoin: Where to Buy?

Before you buy Toncoin, you will need a wallet to store the cryptocurrency.

To purchase Toncoin, we recommend visiting the official website.

Here you can buy Toncoin in three different ways:

pay with fiat money using a bank card;
use a P2P exchange;
use cryptocurrency exchanges.

Choose the appropriate method using the selector on the left side. Then, you will see the available options on the right side. For example, for those looking to buy Toncoin on a cryptocurrency exchange (as shown above), platforms like Bibit, Kucoin, OKX, and BIT are available.

How to Buy Toncoin Using the Telegram Wallet

Buying Toncoin within Telegram is the most popular method and is quite simple.

To buy Toncoin using the wallet built into Telegram:

First, ensure that there are funds in the wallet (for example, USDT).
Then, click on Exchange, specify the amount, and proceed with the exchange.

The screenshot below shows one of the steps of buying Toncoin in the Telegram Wallet.

How to buy Toncoin using the Telegram Wallet

Binance—World’s Largest Crypto Exchange with Ultra-low Fees and $TON Staking

Binance is the largest cryptocurrency exchange in the world. According to CoinMarketCap, in the second half of 2024, over 10 million users visited the platform weekly, with daily trading volumes surpassing $10 billion.

Binance enables you to:

buy Toncoin (TON) on the spot market. This option allows you to truly own the cryptocurrency, making it a great choice if you plan to hold it long-term. Plus, Binance enables you to earn passive income through staking.
buy a Toncoin futures contract. This option is ideal if you are interested in active trading and want to profit from short-term fluctuations in the TON/USDT price.

The screenshot above shows that to buy Toncoin on Binance, you need to follow these steps (after registration):

select “Buy Crypto” (1);
in the form (shown on the right side of the screenshot), specify the amount and choose the payment method for purchasing Toncoin.

FAQ

What is The Open Network (TON)?

The Open Network (TON) is a decentralized blockchain platform designed to provide scalability and high transaction speed. It was originally created by the Telegram team.

What is the TON Token (Toncoin)?

Toncoin, also known as TON, is the primary cryptocurrency token of The Open Network (TON) network. It was designed for funding operations, paying fees, participating in network governance, and accessing other services within the TON ecosystem.

What is Toncoin used for?

Toncoin can be used to pay for advertising, goods, and transfers, as an alternative to the traditional financial system. Since Toncoin operates on a Proof-of-Stake network, it can also be used for staking.

What backs Toncoin?

Toncoin (TON) is not backed by conventional assets like gold or fiat currencies. Instead, its value and security stem from the TON blockchain technology itself, encompassing consensus mechanisms and decentralization. The community’s active participation significantly enhances Toncoin’s value: by 2024, the network had seen the creation of 27 million accounts within just 6 months.

How to Learn to Trade Toncoin

Listing Toncoin on exchanges enables active day trading, taking advantage of minor fluctuations in the TONUSDT exchange rate. You can learn how to trade Toncoin and other cryptocurrencies using the ATAS Market Replay simulator without any risk to your capital.

To do this, download the ATAS platform for free, install, and launch it, and then:

Open the Toncoin’s price chart.
Click on the Market Replay button in the main ATAS menu.
Activate the Replay mode (the icon should turn green).
Adjust settings if necessary (date, data type).
Start playback and enhance your trading skills with Toncoin or other assets.

How to profit from Toncoin's price fluctuations

During your training in trading Toncoin using the Market Replay simulator, you can:

adjust the playback speed, and pause;
test your strategies, monitor signals from over 400 indicators;
of course, use Chart Trader and other features to trade Toncoin on the built-in demo Replay account and then analyze your performance;
use drawing objects, for example, mark support and resistance levels;
use various chart types (e.g., non-standard Range XV);
use exit strategies;
analyze volumes in the Level II order book, for instance, using the DOM Levels indicator;
and much more to become a trader from scratch.

ATAS enables you to download tick history from different markets, not just Toncoin, providing you with a comprehensive foundation for identifying patterns in price and volume interactions.

Conclusions

In late February, Toncoin’s price surged when Pavel Durov announced that the coin would be used to power the advertising market on Telegram. Thus, since its launch (when Toncoin was valued at approximately 10 cents USD), its value has increased by 6300%, allowing Toncoin to enter the top 10 cryptocurrencies.

Toncoin is an important part of The Open Network (TON) ecosystem, which continues to evolve, receiving support from numerous developers and investors, making positive forecasts for Toncoin.

Do you want to trade Toncoin? Before rushing into trading a cryptocurrency that is gaining popularity, make sure you have a sufficient theoretical knowledge base on trading:

Read materials on the Learn tab in the main menu of the ATAS platform.
Explore ATAS tools like professional-grade cluster charts, the Smart DOM order book, Smart Tape, useful indicators, and more.
Read helpful articles about trading strategies in our blog. Test your skills in the simulator or in real time on the built-in demo account without risking real funds.
Your trading advantage may be based on technical analysis, volume analysis.

Download ATAS. It is free. During the trial period, you will have full access to the platform’s tools to experiment with various futures trading strategies and determine which one suits you best. Moreover, you can continue using the program for free even after the 14-day trial period is over, whether it is for cryptocurrency trading or volume analysis in futures markets.

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Information in this article cannot be perceived as a call for investing or buying/selling of any asset on the exchange. All situations, discussed in the article, are provided with the purpose of getting acquainted with the functionality and advantages of the ATAS platform.