Pavel Durov, the CEO of messaging app Telegram, revealed that he held Toncoin, stating it in his personal Telegram announcement channel.
Although TON fell to its lowest level in almost a year in late July, it has since made a recovery, climbing nearly 50% in August. This was especially good news, because it came at a time when the market dropped by more than 5%.
The upturn came as the system’s latest developer report suggested that more people were involved with building decentralized applications (dApps) on the Toncoin blockchain.
TON, which supports a platform that promises quicker transaction speeds than anyone, has a complex relationship with Telegram.
It was founded by Telegram developers after the app’s original Gram crypto, also known as TON, was deemed to be an unregistered security by the United States Securities and Exchange Commission (SEC).
But what is Toncoin (TON)? How does Toncoin work? Let’s see what we can find out, and also take a look at some of the Toncoin Price Predictions that were being made as of July 31 2023.
Let’s examine some of the Toncoin price predictions being made on August 21 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term Toncoin price prediction that said TON would drop to $1.65 by September 6 before recovering to $1.85 by October 1. The site’s technical analysis was on the bullish side of neutral, with 20 indicators sending encouraging signals and 12 making bearish ones.
Bitnation said Toncoin it would reach $6.07. DigitalCoinPrice was close behind, forecasting the coin to hit $6. PricePrediction.net said TON would be worth $5.32 in two years time.
Moving on to a more long-term Toncoin price prediction, PricePrediciton.net forecast the coin to reach $33.13. DigitalCoinPrice said it would be worth $17.75. Bitnation had a TON price prediction that said it would be worth $14.75 at the start of the next decade.
Recently, Toncoin has been relatively busy. It held an online workship on August 31. Toncoin is also working with automated airdrop platform Lootbot. In other news, a group of TON users has proposed rewarding people who lock their TON up for five years.
The TON coin price has been falling since breaking past $2.60 in December last year. When it hit a low of around $1.15 on August 1, it had fallen almost 60%.
Since then, though, there has been some positive price movement.
At first, the price rose to $1.50 on August 16 before falling to $1.25 on August 18. These moves heralded an uptrend. At the time of writing (September 1), TON was being traded at around $1.75 but there is a strong possibility it can continue to rise.
If TON continues to climb further – judging by the momentum that is what is likely to happen – the next price target would be at $1.90. This is the next upper level in the climb. If it breaks past that, then it could reach $2.10.
Now, let’s look at the Toncoin price history . While we should never take past performance as an indicator of future results, knowing what the coin has achieved can provide us with some very useful context if we want to make or interpret a Toncoin price prediction.
TON first came onto the open market on August 26 2021, when it was worth $0.41. A bullish market saw it grow over the following months. It reached an all-time high of $5.84 on November 12 before dropping back to close the year at $3.68.
2022 was not a good year for crypto. However, although TON fell across the course of the year, it still managed to outperform the market. A series of market crashes saw it fall below the dollar in June, but it soon recovered. By the end of the year, it was worth $2.07. Although an annual loss of 43.75% may have caused concerns, but in the context of a crypto market that lost more than 60% of its value year-on-year, it was one of the better performing coins.
With TON outperforming the market in 2022, investors might have thought it could do the same again in 2023. Unfortunately, this has not been the case. While the overall market has risen, Toncoin has dropped.
TON fell below $2 in May and, on July 30, it sank to $1.16, its lowest price in nearly a year.
It climbed at the start of August, but Elon Musk’s SpaceX crashed the market when it offloaded millions of dollars worth of Bitcoin (BTC) in the middle of the month.
Since then, it has recovered. It rose more than 45% in August, from $1.19 at the start of the month to $1.74 at the end. On September 1 2023, it was worth about $1.75.
At that time, there were 3.4 billion TON in circulation out of a total supply of just over five billion. This gave the coin a market cap of $5.9 billion, making it the 11th largest crypto by that metric.
It is hard to say. While Pavel Durov’s announcement might seem like a good sign, someone could look at the way in which Toncoin evolved from a Telegram project and decide that it was inevitable the tech boss would hold the crypto.
Not only that, but its lineage might see it confused with Gram, a coin branded an unregistered security by the SEC. At a time when the SEC has been trying to crack down on unregistered securities, this could be an issue.
On the other hand, The Open Network is one of the fastest blockchains out there and does have some genuine potential. Its native coin is also versatile, which might stand it in good stead in the long run.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in TON.
No one can really tell right now. While the Toncoin crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in Toncoin, you will have to do your own research, not only on TON, but on other, related, coins and tokens such as Ethereum (ETH) and Solana (SOL). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
In its technical documentation, or whitepaper , Toncoin says it aims to be fast, efficient, and easy to use.
It says: “The Open Network (TON) is a fast, secure and scalable blockchain and network project, capable of handling millions of transactions per second if necessary, and both user-friendly and service provider-friendly. We aim for it to be able to host all reasonable applications currently proposed and conceived.
“One might think about TON as a huge distributed supercomputer, or rather a huge superserver, intended to host and provide a variety of services.”
One of the key features of the blockchain is privacy. Therefore, it is perhaps inevitable that organizations which also promote privacy and encryption have got behind blockchain technology.
One such organization is the Telegram messaging app. In 2018, Telegram started work on its own blockchain, the Telegraph Open Network, which was to be supported by the gram (TON) coin.
Unfortunately, it fell foul of the SEC, which found that TON was an unregistered security.
All was not lost, though. Telegram developers founded an open-source platform called Newton which was renamed The Open Network and properly launched in 2021, supported by the Toncoin (TON) cryptocurrency.
The Open Network is based on a Proof-of-Stake (PoS) consensus mechanism, which means that people add blocks to the blockchain, verify transactions and earn rewards based on how much TON they hold.
The platform promises transaction speeds of less than one second, making it potentially one of the quickest blockchains around.
Toncoin itself is used to pay for transactions on the network and for data storage. Holders can vote on changes to the network and stake it, or set it aside, in return for rewards. It can also be bought, sold, and traded on exchanges.
It is important to remember that Toncoin is not to be confused with Gram, even though they have a similar history and the same ticker handle.
On August 21 2023, there were 3.4 billion TON in circulation out of a total supply of just over five billion.
It could do, but it might not happen for some time. PricePrediction.net has it getting there in 2027, while Bitnation says it can get there in 2028. DigitalCoinPrice has TON reaching double figures in 2029.
It is worth remembering that Toncoin has never traded at $10. Its highest ever price, $5.84, came in November 2021.
TON is used to pay for transactions and data storage on The Open Network blockchain. People who hold Toncoin can vote on changes to the platform and stake the coin, or set it aside, in return for rewards. TON can also be bought, sold, and traded on exchanges.
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Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.