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What Is Toncoin and Is It a Scam? Reviews, Opinions and DYOR
01/15/2024

What Is Toncoin and Is It a Scam? Reviews, Opinions and DYOR

01/15/2024
4,2

TON is a layer-1 blockchain focused on delivering rapid transactions and robust support for an array of decentralized applications (dApps). In this article we find out if Toncoin is a scam or not.

It was originally developed by the messaging app giant Telegram, but now TON is run by the TON Foundation. This blockchain platform is specially designed for scalable cross-chain interoperability.

Toncoin was launched in 2018 by Telegram and raised $1.7 billion in private funding. However, the project faced a significant setback when the US Securities and Exchange Commission (SEC) filed a lawsuit against Telegram, challenging the legal status of Toncoin as a security. This legal pressure led Telegram to discontinue its involvement with the project. It was later revived under its current name, The Open Network.

TON employs a sharded, proof-of-stake consensus mechanism, which enables parallel processing of transactions for enhanced speed.  Within the TON ecosystem, Toncoin (TON) serves as the primary utility and payment token. It plays a vital role in transaction fees, staking, governance, and peer-to-peer payments. Additionally, Toncoin is integral to the functioning of decentralized exchanges (DEXs), decentralized finance (DeFi) platforms, and decentralized governance, including voting on network changes.

On September 13, 2023, Telegram announced the integration of TON Space, a self-custody crypto wallet based on the TON network into its messaging app. This integration aims to provide users with easy access to financial services on the TON network.

Source & Copyright © Ton.org

Toncoin Reviews and Opinions: Reddit and X

Reddit Community Feedback

The Reddit community's response to Toncoin presents different opinions, ranging from optimism about its potential to skepticism and unfamiliarity.

Some users express strong optimism about Toncoin's future. One user remarked, "Ton coin has great potential. I think it's still early days for it and there is a profit to be made in the bullrun." This sentiment is echoed by another who stated, "I'm glad Toncoin is doing tons better now. I've been invested in this for over a year now. Good to see it grow."

The connection to Telegram is seen as a strong point, with one user saying, "Same never heard of it, but a telegram coin could go places, I mean telegram has a huge amount of users."

Toncoin's approach to being mainstream and user-friendly is noted as a positive. "They look pretty serious. I don’t know a lot of crypto products that have 24/7 live support," a user commented.

Despite its growth, many users are surprised by its sudden appearance in the top rankings. "It's already on top 10? I had never heard about it until like one week ago," one user expressed.

The potential for scams, especially related to Telegram's self-custody wallet, is a concern. "Toncoin is gonna be huge, but I predict so many scams on telegram self custody wallet lol," shared a user.

The rise in Toncoin's price has raised questions about its accessibility. One user noted, "TON is a really good project but already the price went upwards... and it is too much I think and not good for mass adoption."

A few users remain skeptical about its long-term viability. "Just another shitcoin that will be forgotten about in 2-3 years," a user stated.



X Users' Feedback

The X commentary on Toncoin presents a mixed picture as well. On one hand, there is a clear sense of optimism about its market potential and technological promise. On the other hand, questions about its blockchain performance and user experience issues highlight areas that require attention.

Several X users are optimistic about Toncoin's future. Comments like "Toncoin's potential is promising" and "With a strong market cap and potential for growth, Toncoin is a promising investment," indicate a belief in its potential.

There's a sense of excitement about the technology and its association with Telegram, as one user exclaimed, "Ton is most perspective coin and blockchain. Viva la telegram!"

The sudden rise in Toncoin's market cap has left some users puzzled, with tweets like "What the fuck is toncoin and why is it a 7 billion market cap".

Questions about the blockchain's capabilities and speed were raised, with a user asking, "You going to come out and admit you aren’t the fastest blockchain yet????".

Some users have reported issues related to transactions and support, such as "12 hours ago, I conducted a cross-chain operation of 491.777ton (erc-20), but until now I have not received the tokens on the open network" and "Bad support. Cannot send TON from Bitgetwallet."

Our X's followers also decided if the project is a scam or not in a poll, and answered the following:

Community, Website, and Social Media Accounts

Platform X Telegram LinkedIn
Subscribers 276k 1m 3k
Comments 100-200 comments per post on Average this is a channel, but the posts have comments; 50 per post on Average 1-3 comments per post on Average
Reposts 100-200 on Average ------ 2-5 on Average
Engagement high medium low
Community Power 5 from 5 3 from 5 2 from 5

The TON X account is vibrant and engaging, boasting over 260,000 followers. It's a hub that attracts considerable attention from prominent figures, influential projects, and key players in the cryptocurrency sector. Their feed is frequently updated with announcements of significant partnerships with well-known crypto projects. The level of community interaction is notably high, as evidenced by the active comments section and frequent reposts.

In contrast, their Telegram channel, with a substantial user base of over one million, primarily serves as a platform for official announcements rather than interactive communication between the users and the project's team.

As for the project's website, it stands out for its user-friendly design and informative content. It not only offers educational resources and tutorials but also provides access to their white paper and TON Blockchain development documentation. These resources equip users with everything they need to effectively build, test, and deploy applications on the TON Blockchain.

Founders and Investors of Toncoin 

Ton was initially developed by brothers Nikolai and Pavel Durov in collaboration with the Telegram team. However, following Telegram's decision to step away from Toncoin, independent developers unconnected to Telegram took the reins of the project. The foundation for the project was laid out as open-source from the start, enabling anyone to contribute to its development.

The current version of the network was brought to life and further developed by community members Anatoliy Makosov, a software developer, and Kirill Emelianenko, a programmer with a Ph.D. in Physics and Mathematics. They were both members of the community NewTon, which later became the TON Foundation.

The project, now known as Toncoin, assumed control of the ton.org domain and the Toncoin code repository in 2021. In the same year, Toncoin introduced the Toncoin blockchain and the $TON token. The TON Foundation, a non-commercial collective of enthusiasts, rebranded the project as The Open Network while preserving the TON acronym and currently oversees the operation of Toncoin.

Source & Copyright © Ton.org

TON's governance is community-driven. As an open-source project, it relies on its user base to make governance decisions. This is achieved through "Validator Voting," where votes on community and foundation initiatives are weighted according to token holdings.

Despite TON's operational independence from Telegram, Pavel Durov, the founder and CEO of Telegram, expressed his support for Toncoin in a 2021 Telegram post. He acknowledged the project's potential while clarifying that Telegram no longer maintains any financial or technological ties to TON.

TON has received 10 million worth of investments from MEXC Ventures, the investment arm of MEXC exchange.

Tokenomics: Supply, Allocation, Use Case

Toncoin (TON)  is the native token of the TON blockchain. Primarily, TON is the default currency for most transaction fees on TON. 

Additionally, TON is necessary for covering costs related to data storage on the blockchain and for acquiring blockchain-based domain names. Toncoin is also working on a proxy service, and it is anticipated that TON will be used for access payments to this service.

Beyond its transactional use, TON functions as a governance token. For investors in Toncoin, there's an opportunity to stake their TON tokens. This staking contributes to the validation of transactions on the network, employing a proof-of-stake mechanism.

Furthermore, TON token is compatible with the TON wallet, one of several TON wallet alternatives. The TON Wallet enables consumers to conduct secure, direct blockchain-based transactions.

As of December 2023, the maximum supply of Toncoin remains unspecified. The circulating supply is reported to be over 3.4 billion, out of a total supply nearing 5.1 billion. It is expected that the number of TON in circulation will gradually increase as validators are rewarded for their contributions to the network.

Toncoin Current Price and Price History

Throughout its history, Toncoin has experienced its share of fluctuations. The token achieved its highest value shortly after its launch, hitting an all-time peak of $5.84 on November 12, 2021. Since then, although its price has generally trended downwards, TON has witnessed a few notable rallies, with the most significant one occurring at the start of 2023.

Interest in TON dipped in the first half of 2023. However, following the integration with Telegram, the price rebounded to $2.50, accompanied by a trading volume exceeding $50 million in one week.

This period also saw the blockchain's highest transaction activity in six months, with over 200,000 transfers recorded on September 17, coinciding with the Telegram integration. This event led to over 2,400 new addresses joining the network on a single day, as per TonStat data. In the past two years, the TON blockchain has seen the creation of over 4 million accounts. 

The current Toncoin price is $2,19 with a 24-hour trading volume of $44 881 584. 

Source & Copyright © TradingView

Bottom Line: Is Toncoin a Scam or Not?

Initially, this project encountered regulatory hurdles with the SEC, but it has since been revitalized by its community and is currently performing well. 

The recent integration of Toncoin with Telegram is a significant milestone. Telegram, with its global usage and over 800 million monthly active users, offers an extensive network for Toncoin to leverage. This integration is particularly attractive for developers, who are always looking to build where there's a large user base. Telegram’s vast audience makes it an attractive platform for developers, potentially encouraging them to migrate from other blockchains to Toncoin.

However, it's important to note that TON, as a newer entity compared to some established Layer 1 blockchains, is still in a growth phase. Like any investment, its future success isn't guaranteed.

Taking all these factors into account, we assess this project as low risk.

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The materials found on the Cryptonica website shall not be taken as individual investment recommendations. The financial instruments or operations mentioned therein may not align with your investment profile or objectives. We assume no responsibility for any missing facts or inaccurate information in the texts. Cryptocurrencies are financial assets with high risk and volatility. Therefore, it is crucial that you conduct your own research on financial instruments and make independent decisions. Before engaging in any actions related to cryptocurrency, you shall study, understand, and comply with the laws applicable in your region and country.

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