The cryptocurrency known as TON has experienced a surge in value in recent months, holding $18.3 billion in circulation, and standing as the 10th largest cryptocurrency, trailing behind cryptocurrencies like Dogecoin.
Telegram endorsed TON in September last year, declaring it as the platform’s “official Web3 infrastructure.” This move has paved the way for TON’s adoption within the Telegram ecosystem, which could allow TON to reach Telegram’s estimated 900 million users.
Earlier this month, TON announced that Tether tokens could be issued on its blockchain, enabling Telegram users to send the stablecoin to each other directly within the app. As a result of these developments, the value of the TON token has skyrocketed, reaching as high as $7.63 on 11th April, compared to $2.21 a year earlier, according to CoinGecko data.
The concept of a “super app” or “everything app,” which integrates various functionalities such as payments, shopping, and social media within a single platform, has long been coveted by investors. In the cryptocurrency realm, this concept is often referred to as “SocialFi.”
According to Reuters, TON’s surge in popularity is not only attributed to its potential as a super app but also to the broader revival in alternative cryptocurrencies (altcoins). CEO of digital asset hedge fund Indigo, Thomas Peuch, noted that TON has outperformed many of its peers due to renewed interest in altcoins and Telegram’s backing.
TON’s history traces back to 2018 when Telegram Messenger created its blockchain and raised $1.7 billion through a token sale. However, the project faced legal challenges from the U.S. Securities and Exchange Commission (SEC), leading Telegram to halt its development as part of a settlement with the SEC in 2020.
Despite this setback, a group of independent developers continued to work on the project, positioning TON as a decentralised network based on open-source code and governed by a non-profit foundation registered in Switzerland.
While TON maintains its independence from Telegram, the collaboration between the two entities remains significant. The TON Foundation, led by president Steve Yun, and founding member and former CEO of Russian social media site VK, Andrew Rogozov, has been actively driving the project forward.