What to Know:
- TON increased by approximately 8% before settling down on Thursday.
- The Open Network Foundation revealed multiple venture capital firms have invested $400 million in the token.
- TON is the native token of the TON blockchain, which was originally developed by the messaging platform Telegram. The token’s value remains more than 50% below its peak in June, influenced by Telegram CEO Pavel Durov’s legal issues in France.
Overview of Recent Developments
Toncoin (TON), associated with the TON blockchain linked to Telegram, saw a significant price increase on Thursday following the announcement by The Open Network Foundation regarding substantial investments from various venture capital firms amounting to $400 million. Notable investors include Sequoia Capital, Ribbit, Benchmark, Kingsway, and CoinFund, among others.
“These venture capital firms hold over $400 million worth of Toncoin, which is the native cryptocurrency of the TON Blockchain. It’s important to note that this is not a fundraising round. Instead, these VCs are placing their bets on the future success and utility of the TON Blockchain,” stated a spokesperson from the Ton Foundation.
The token’s price jumped to over $3.8 shortly after the news broke but later decreased slightly. In the last 24 hours, the price was reported to have risen by 2%.
Originally conceived by Telegram, the TON network continued its operations independently following regulatory hurdles faced by the parent company after a settlement with the U.S. SEC in 2020.
Telegram CEO Pavel Durov was arrested in France in August, as part of unresolved legal complaints regarding the platform’s moderation practices. Recent reports state that he regained access to his passport earlier this month, leading to a subsequent 20% spike in TON’s price. Digital asset investment firm Pantera Capital previously indicated a significant investment in TON back in May, without disclosing the amount.
