Toncoin (TON) Unveiled: A Comprehensive Review of the Cryptocurrency

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Are you looking for a cryptocurrency to buy? Do you want to invest in a lesser-known crypto to profit from its upcoming surge? In that case, it’s best to explore the world of altcoins. The altcoin market offers a wide variety of assets, including Toncoin (TON).

Toncoin, despite not being widely known, holds promising prospects, especially considering its origins. The creators of Toncoin are the same individuals behind the globally renowned Telegram network. It’s worth taking a closer look at this digital currency, don’t you think? Let’s discover what Toncoin is all about.

What is Toncoin (TON) ?

Toncoin is a layer 1 blockchain created in 2018, also known as “The Open Network.” Similar to Bitcoin or Ethereum, it operates as an independent blockchain managing transactions. The associated cryptocurrency symbol is TON, and the TON Foundation now oversees the project’s development.

As of the writing of this guide, The Toncoin chart shows that the price of Toncoin is $2.08. The highest recorded Toncoin price USD was on November 12, 2021 when it reached $5.29. The project’s market capitalization is estimated at $7.2 billion, placing Toncoin close to the top 10 globally. 

Currently, Toncoin crypto is ranked 15th. To provide context, Toncoin’s market capitalization is comparable to Chainlink (LINK). In other words, Toncoin is not a small cryptocurrency platform. A relatively modest increase in its value could propel it into the top 10.

Toncoin's website

The History of Toncoin

The genesis of the Toncoin project dates back to 2018 when the individuals behind its creation collaborated on the launch of the globally recognized social network, Telegram. The Toncoin founders are Nikolai and Pavel Durov. Nikolai Durov, a Russian, holds a dual Ph.D. in mathematics from the University of Saint Petersburg and geometry from the University of Bonn.

The history of Toncoin ties back to Telegram’s project to create its on-chain token, “Gram.” As Gram gained success, the Securities and Exchange Commission (SEC) began scrutinizing the project. 

Binance

  • Low fees
  • One of the largest crypto exchanges
  • Fee discount for using native BNB

Problems arose for the Telegram teams as the SEC regulators prohibited the distribution of Gram coins. The SEC considered these coins as “Securities,” requiring the company to register to sell them. 

Disputes over the classification of certain cryptocurrencies with regulatory bodies, such as the case of Ripple (XRP) with the SEC, have become common.

Following these challenges, the Telegram team shifted its focus to the development of Toncoin. The Toncoin blockchain was initially named “Telegram Open Network.” In 2020, the CEO of Telegram left the project, and blockchain development was transferred to the community, leading to the network being named “The Open Network.” Currently, the TON foundation (a non-profit community) is responsible for developing the blockchain.

Why Was Toncoin Created?

Toncoin is a layer 1 blockchain, positioning itself between Bitcoin and Ethereum. Toncoin was designed to handle a large number of transactions, primarily serving as a means of payment similar to Bitcoin. However, Toncoin also ventures into decentralized applications (dApps) and smart contracts, akin to Ethereum.

The blockchain offers a relatively extensive ecosystem, featuring products such as 

  • TON wallet,
  • TON Services for dApp development
  • TON Storage for private key encryption
  • TON Proxy for VPN connection, 
  • TON DNC for compatibility with traditional websites, 
  • TON Payments for micropayments. 

The combination of these components allows the platform to host more versatile applications than would be possible using only the Toncoin blockchain.

“Although the TON blockchain is at the heart of the TON project and the other components can be seen as playing a supporting role for the blockchain, they are proving to have useful and interesting functionality on their own. Combined, they enable the platform to host more versatile applications than would be possible simply using the TON blockchain” Toncoin white paper.

How Does Toncoin Work?

Though complex, the Toncoin whitepaper explains its functioning. Toncoin’s blockchain is viewed as a combination of two chains. Firstly, there is the main chain responsible for transactions, where validators operate. To enhance performance, this blockchain utilizes the “sharding” mechanism.

Sharding is used by several blockchains, including Ethereum and MultiversX (formerly Elrond). With sharding, the blockchain is divided into smaller chains. Each chain is independent and can be considered a small blockchain. The overall goal of sharding is to parallelize transaction processing, ultimately increasing the network’s capacity.

Toncoin boasts high scalability. With 104,715 transactions per second, TON has surpassed well-known blockchains and payment systems like Solana, Polygon, Visa, and MasterCard to become the fastest network in the world, according to blockchain security company Certik.

In addition to the main blockchain, there are many “working blockchains” or “workchains.” Their number is limited to 2^32, approximately 4.3 billion. These chains facilitate asset transfers and, more importantly, support smart contracts. Architecturally, Toncoin somewhat resembles EOS and Polkadot.

For transaction validation, the Toncoin blockchain uses the Proof-of-Stake (POS) protocol. This approach, also used by other blockchains like Cardano, Solana, and Ethereum, is more energy-efficient than the Proof-of-Work (POW) used by Bitcoin (BTC). In POS, validators are not in competition, and the selection of validators is primarily determined by the amount of staked tokens.

Where to Buy Toncoin?

To purchase Toncoin, you don’t need to visit a bank, as cryptocurrencies are decentralized and independent of the banking system. Instead, you must turn to an online platform (also known as crypto exchange). Exchanges can be centralized or decentralized. If you’re not yet well-versed in the cryptocurrency sector, centralized platforms are recommended for their user-friendly nature compared to their decentralized counterparts.

Toncoin is not available on all major platforms despite its position in the top 30 cryptocurrencies. For example, it’s not listed on Binance, a global leader with over 128 million registered users. However, there are several other options for acquiring TON.

Before selecting a platform, ensure it is secure and reliable. Some reputable exchanges where you can buy TON include:

  • Kucoin: The fourth-largest spot exchange according to CoinMarketCap.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

  • Bybit: A major exchange with low trading fees.

ByBit

  • Wide range of investment products
  • Transparent platform
  • Free demo account

  • Poloniex: A comprehensive service offering a choice of over 350 cryptos.

Poloniex

  • Over 350 cryptocurrencies offered
  • Low trading fees
  • Integrated NFT market

These three crypto exchanges are safe choices for purchasing TonCoin, known for providing quality services and a high level of security. Regardless of the chosen exchange, you generally need to follow these steps to buy TON:

  • Create an account on the platform, including filling out any necessary KYC (Know Your Customer) requirements and verifying the account.
  • Deposit fiat currency (usually USD) via a bank transfer or another method accepted by the site, then purchase TON.
  • Alternatively, some exchanges offer the direct purchase of TON using a credit card (without a prior deposit to the account).

Toncoin Fear and Greed Index

Updated:: 24 February 2024

Now: 78 Extreme Greed

Now: 78 Extreme Greed

Yesterday: 78 Extreme Greed

Last Week: 70 Greed

Is Toncoin (TON) a good investment?

Toncoin future can be bright. The coin gained attention upon its release, given its association with the significant Telegram social network. Beyond this, the project is built on advanced technology, challenging to comprehend. Thanks to this technology, the blockchain demonstrates remarkable scalability, a significant asset for the future.

The dual philosophy of Toncoin is also noteworthy, positioning itself in payments like Bitcoin and the decentralized applications (dApps) sector, akin to Ethereum and its numerous “killers.” However, achieving these dual objectives requires substantial development capabilities to stay ahead of the competition.

Pros and Cons of Investing in Toncoin (TON)

  • Rich ecosystem.
  • Scalability of the blockchain.
  • Project was initially developed by the Telegram team and now entirely decentralized in the hands of the community.
  • Blockchain philosophically positioned between Bitcoin and Ethereum.
  • Complex ecosystem to grasp.
  • Development is handed over to the community while the ecosystem is not yet mature.
  • TON is not available on some major platforms.

Our General Review of Toncoin

Toncoin is one of those promising coins built on advanced technology. With the initial spotlight from Telegram, the crypto has continued to shine with its performance and ongoing development. With a busy roadmap, Toncoin is expected to make headlines this year. Furthermore, the current Toncoin value is far from its 2021 levels, suggesting significant growth potential. Toncoin forecasts around the web suggest that TON will probably recover.

By investing in Toncoin, you are investing in a cryptocurrency with a dual purpose: a means of payment and decentralized application platform. In other words, Toncoin is anything but a meme coin without value. Despite being relatively unknown, this crypto could be one of the positive surprises in the future!

FAQ - Frequently Asked Questions about Toncoin

What is Toncoin?

Toncoin is a crypto initially created by the team behind the Telegram social network. Its development is now entrusted to the community via the non-profit TON foundation.

Is Toncoin an ERC20 token?

No, Toncoin is a cryptocurrency that operates on its own blockchain called The Open Network.

Can Toncoin be mined?

Yes, it is possible to mine Toncoin, but all Toncoin have been mined as of 2022. But it is possible to do Toncoin staking.

How to buy Toncoin?

Toncoin is available on certain exchanges. You can create an account and purchase this crypto on platforms like KuCoin.

Can Toncoin be bought on Binance?

No, as of now, Toncoin is not available on the Binance platform.

About the author

Robert Balmes

EN Robert Balmes est analyste financier depuis 2013. Il est expert dans les marchés actions, le Forex et les cryptomonnaies. Il participe à l’élaboration d’articles de fond sur des sites spécialisés comme Tokize.com.