The Toncoin cryptocurrency has seen a significant upward movement in its price in recent days. What is this token and what is behind its rise?
Toncoin (TON) is the native token of The Open Network blockchain. It is a layer one network developed by Telegram .
The project was originally called Gram and was actively developed until 2020 , when it lost a lawsuit against the US Securities and Exchange Commission and its founder Pavel Durvo ended Telegram's participation in blockchain development and began paying refunds to original investors.
However, the project was developed as open-source and its code was easily available , so community developers could continue development, the project was renamed The Open Network and Toncoin was born.
Its biggest advantage is its flexible architecture. It is efficient and scalable and is able to successfully verify and process millions of transactions per second .
Regular users can buy or transfer toncoins using the Wallet feature right in the Telegram app. They don't have to pay transaction fees (gas) to do so , allowing them to easily and quickly transfer funds to people in their contact list.
Why is TON currently growing?
The price of TON hovered around $2 for a long time. However, the current price is $4.98 . One of the reasons is the announcement that using TON, Telegram will distribute rewards to those who have a channel on the social network. In total, up to 50% of all income that will come from advertising placed on this network should be distributed in this way .
Another reason may be one notable transaction on the blockchain. Lookonchain, an on-chain data platform, said on social network X that the 30% increase in TON price coincided with this transaction.
This is a purchase by a large investor who exchanged 214 Ethereum (ETH) coins , which is about 850 thousand USD at the current exchange rate, for 209,237 TON . Such a large investment in the market further increased interest and confidence in the cryptocurrency and contributed to a significant increase in its market value.
