What is Toncoin (TON)? Is TON coin a good investment?

Toncoin is a notable cryptocurrency project today with a market capitalization reaching billions of USD. Toncoin (TON) has received a great deal of attention from the community. So what is Toncoin (TON), what makes the Toncoin project special, and what is its potential for future development? Let’s find out together in this article.

Contents

1 What is Toncoin (TON)? Should you invest in Toncoin 2024?

What is Toncoin (TON)? Should you invest in Toncoin 2024?

What is The Open Network (TON)?

The Open Network (TON) is a decentralized layer-1 blockchain project, developed with the goal of creating a blockchain network with extremely fast transaction speeds, low fees, ease of use, and environmental friendliness. TON is a blockchain that uses a Proof of Stake consensus mechanism similar to Solana or Ethereum 2.0.

The origin of the TON project was created by the Durov brothers (founders of Telegram) in 2018, initially named Telegram Open Network (still abbreviated as TON) and issued a token called GRAM. However, in 2020, the project was forced to halt due to a ban on token issuance by the United States Securities and Exchange Commission (SEC), with specific reasons to be discussed later.

Eventually, Telegram had to abandon the project and a decentralized community continued to develop it, building new TON functions and turning Telegram’s design into reality. The development goals of the project always align with the network design detailed in the original whitepaper.

=> From there, the project was no longer called Telegram Open Network but The Open Network.

What is Toncoin or TON coin?

TON coin is the native token of the TON network; it is used to operate the TON network for transaction fee payments, blockchain security through staking, and network governance, among other things.

What is toncoin used for?

Paying commissions for processing transactions on the chain with smart contracts
Paying for services provided by applications built on the platform
Governing the TON blockchain to direct the future development of the project
Payments for creating new working methods and other currency units
Rewards for stakingCapital for nominated borrowers in exchange for their rewards
Cross-chain transaction fees
Payments for blockchain-based domain names (DNS)
Payments for TON Proxy (under development)
Payments for decentralized data storage (under development)

The current annual inflation rate based on TON’s fundamental parameters is 0.6%. This inflation represents a payment from all community members to Validators to maintain the network’s operations.

Toncoin (TON) has its own blockchain, but thanks to cross-chain bridges between TON, Ethereum, and BNB Chain, you can still transfer TON coins between these blockchains.

Basic information about TON coin:

Token Name: Toncoin
Ticker: TON.
Blockchain: TON
Token type: Utility, Governance
Max Supply: unlimited
Real time price: $ 5.50 (0.61%)

Who is the development team behind TON coin?

The TON Foundation is a decentralized community initiated by Anatoliy Makosov and Kirill Emelyanenko after Telegram stepped away from the project. Since then, a community of developers from around the world has come together to support the development of TON. As of March 2022, numerous developers have joined the project and have been collaboratively striving to build a network that will reach billions of users.

Let’s talk a little about Anatoliy and Kirill Emelyanenko:

+ Anatoliy Makosov: He is currently the project lead and core developer at The Open Network. As for his educational background, professional level, or his actual appearance, no information can be found, which may be because he prefers anonymity. All that is known is that his avatar is a rather cute duck.

+ Kirill Emelyanenko: He is also a core developer of TON after Telegram abandoned the project. However, his identity, like Anatoliy’s, is not disclosed.

Overall, we do not have much information about the development team behind TON coin, except that it is a completely decentralized project with no CEO and it belongs to the community, where everyone can participate in the project to contribute to its development.

History and Roadmap of TON coin

In 2018: The Telegram Messenger team, led by the brothers Pavel and Nikolai Durov, began exploring blockchain solutions for Telegram Messenger. When they could not find any existing first-layer blockchains capable of supporting Telegram’s nine-figure user base, they decided to design their own, which later became known as Telegram Open Network (TON).

Telegram then raised $1.7 billion in a private token sale (later called Grams), which was one of the largest private token sales in the history of cryptocurrency.

In 2019: The Telegram team released a series of documents detailing the design of the TON blockchain. Telegram launched two testnets for TON – the first testnet in early 2019 and the second testnet in November 2019.

In October 2019, the U.S. Securities and Exchange Commission (SEC) sued Telegram, alleging that Telegram had conducted an unregistered securities offering. Telegram argued that the SEC’s allegations were baseless but agreed to delay the launch of TON until legal issues were resolved.

The Telegram team ceased development of TON and support for testnet2, paid a $18.5 million fine, and agreed to return money to investors.

In 2020: Telegram abandoned the development of TON, and a new development group for TON emerged.
Amid ongoing regulatory battles in the US, Telegram ultimately decided to halt its TON coin project activities.

In March 2020: The Telegram team stopped developing TON and supporting testnet2, paid an $18.5 million settlement, and agreed to return funds to investors from the private coin offering.

That same year, a small group of open-source developers – NewTON delved into the codebase, architecture, and documentation of TON. They decided to continue developing the TON project in line with the design detailed in the original TON documentation.

In 2021: Testnet2 remained stable for an extended period, and the community voted to rename it Mainnet. The NewTON team was renamed to TON Foundation – a non-profit community focused on further supporting and developing the network.
The TON Mainnet was recognized as a stable and secure blockchain.

♦ Q3 2021: The TON – ETH and TON – BSC bridges were successfully launched.

♦ Q4 2021: TON coin was listed on major exchanges.

In 2022: In Q1 and Q2 of 2022, TON completed various components such as TON Nominators, TON Developers Program, TON DeFi, TON Payments, TON DNS.
For the current and future roadmap, please refer to the image below:

What are the outstanding features of TON coin?

What has enabled TON coin to quickly enter the top 100 cryptocurrency projects with the largest market capitalization in the world according to Coinmarketcap, sometimes reaching a market cap of 5 billion USD? Let’s look at the notable features of the Toncoin project that you should know:

TON is designed to be scalable and is touted to be capable of serving “billions of users.” TON achieves this through blockchain sharding, a technique that involves using multiple blockchains within the same network.
The TON network currently includes a main chain, work chains, and shard chains. This helps distribute the network’s workload across multiple chains and prevents any one chain from dealing with a huge backlog of unverified blocks. Other popular blockchains like Zilliqa are currently using sharding, and the Ethereum 2.0 network will also deploy this technique in the near future.
The TON network uses a Proof of Stake (PoS) consensus mechanism to verify transactions. This mechanism is recognized for being energy-efficient and less polluting compared to Bitcoin’s PoW mechanism. Ethereum is also transitioning from PoW to PoS for this reason.
TON has built a lot of features for its blockchain such as: TON Wallet, cross-chain bridges from TON to Ethereum and BSC, TON Nominators, TON Developers Program, TON DeFi, TON Payments, TON DNS.
The transaction speed is fast, the transaction cost is low, and it is built to cater to the needs of billions of users.

Compare blockchain TON, Solana and Ethereum 2.0

Should you invest in TON coin?

To decide whether to invest in TON coin or not, let’s review the advantages and disadvantages that this project currently has:

What are the advantages of TON coin?

♦ TON blockchain has easy-to-use native applications. Some of these native applications can be used directly within Telegram, such as @wallet or @cryptobot.

♦ Low transaction fees, environmentally friendly

♦ Extremely fast transaction speeds, capable of meeting the demands of billions of users simultaneously

♦ Has bridges to both Ethereum and Binance Smart Chain, and in the future, there will be additional bridges to Bitcoin

♦ Diverse wallet applications: Tonkeeper, Tonhub, Android TON wallet, and iOS TON wallet.

What are the disadvantages of TON coin?

♦ The TON ecosystem is still quite small and the project is relatively young. TON coin has also only recently been listed on cryptocurrency exchanges. Rapidly entering the top 100 coins by market capitalization could be transient and may result in the coin dropping in rank if it receives less attention or the project lacks new attractions for the community.

♦ The maximum supply is quite large and there is annual inflation, so it will be difficult to rely on scarcity to increase value as with Bitcoin, for example.

♦ The development team behind TON coin prefers to remain anonymous, which may concern investors who favor transparency.

♦ The price is highly volatile and heavily influenced by Bitcoin’s price, with a very high investment risk.

♦ It is not listed on Binance and Coinbase – the leading cryptocurrency exchanges today.

=> In conclusion: Should you invest in TON coin? If one looks at the current development of the project as well as its future directions, it can be seen as a cryptocurrency project worth paying attention to. However, since it is still a new and young project, there are significant risks associated with the opportunities. If you are interested, it is advisable to invest only a small amount of capital.

Where to buy TON coin?

You can purchase Toncoin on exchanges such as Huobi, FTX, Gate.io, OKX, MEXC, Uniswap, etc.

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Through this, we hope you have understood what TON coin is as well as the potential for development of this project. If you have any more questions related to TON coin or want to review another coin, please leave a comment so invest286.com can help you with a detailed review later.