Recently, a major event happened in the TON ecosystem, making the entire cryptocurrency community nervous and anxious.
The cause of the incident is that Telegram founder Pavel Durov was arrested in France. Although he has been released on bail, he cannot leave France and has to wait for the final decision of the court.
This news was like a bomb, instantly causing panic in the market.
The price of TON tokens plummeted, falling to as low as $4.44, and its market value also shrank significantly.
Many people began to worry: Will this incident have a big impact on the future of the TON ecosystem? Will the money we invested be wasted?
Today, I will take you to explore in depth the short-term impact and long-term impact of this incident on the TON ecosystem.
Whether you already hold TON tokens or are interested in this project, this issue can help you understand its future direction more clearly.
1. What challenges does TON face?
The news of Pavel Durov’s arrest sent a big shock to the markets.
The price of TON tokens once plummeted to $4.4, although it has now rebounded to around $5.5. However, market sentiment remains unstable and investor confidence has been affected.
According to data from DefiLlama, the total locked value (TVL) of the TON network has dropped sharply from US$770 million on July 21 to US$400 million today, almost halving.
This means that many investors have chosen to withdraw their funds, the market is full of risk aversion, and everyone feels uncertain and worried about TON's short-term prospects.
While Pavel Durov is facing legal issues, the TON ecosystem is not completely in trouble.
Because there is another key figure - Pavel's brother Nikolai Durov.
He is the core architect of TON and has a very strong technical background. He once developed Telegram's MTProto protocol to ensure the security and privacy protection of the platform.
Therefore, although the Telegram platform may face the risk of losing some users due to the arrest of Pavel Durov, this will not be a fatal blow to the TON ecosystem.
Because TON’s technical foundation remains solid, the development team continues to work hard.
2. What long-term advantages does the TON ecosystem have?
Although the TON ecosystem has encountered some challenges in the short term, its long-term fundamentals remain strong.
Next, I will take you to a deeper understanding of TON’s long-term advantages from five aspects: token lock-up, technical strength, ecological expansion, USDT deployment, and community support.
1. Token lock-up: reduce circulation and stabilize prices
First, the large amount of TON tokens locked up provides stability to its price.
In early 2023, the TON community froze the wallets of inactive miners through an on-chain vote, which accounted for 21% of the total supply, and these tokens will be locked until February 2027.
In addition, the TON Believers Fund also locks up 26% of the supply. In total, about 47% of the tokens will not be circulated in the next 3 to 5 years.
2. Technical advantages: strong transaction processing capabilities
TON's technical strength is also impressive, especially in terms of transaction processing speed.
On October 31, 2023, the TON blockchain set a world record.
In a public performance test, it peaked at 104,715 transactions per second and completed more than 100 million transactions in 25 minutes.
If we compare blockchain to a highway, TON is like a super highway that can accommodate thousands of vehicles passing quickly at the same time.
Blockchains like Ethereum can only process about 30 transactions per second, and Bitcoin is even lower, at only 7 transactions per second.
Even traditional payment giant Visa can only process 24,000 transactions per second. In comparison, TON's transaction processing capacity far exceeds these mainstream blockchains and traditional payment systems.
This means that TON can provide strong infrastructure support for applications such as financial services, games, social media, etc. that require high throughput and fast transactions.
3. Ecosystem expansion: seamlessly connecting 900 million users
In addition to its technological advantages, TON's ecological expansion is one of the important pillars of its long-term development, especially in terms of wallet and payment functions.
Simply put, TON is not just a blockchain project. It also opens up usage scenarios for 900 million users through deep integration with Telegram.
For example, in July 2023, TON launched a new wallet payment function, allowing users to easily conduct transactions and payments through the TON wallet.
You can imagine that you can usually only send messages in chat software, but now you can complete payments and transfers directly in the chat software. This is the convenience brought by the combination of TON and Telegram.
In December 2023, TON added a "secondary entrance" to the wallet in the Telegram app, which means that users can use TON to pay directly in Telegram. This is like you can not only chat in WeChat, but also buy things directly with WeChat Pay.
The launch of this feature not only makes it easier for users to get started with TON, but also allows the TON ecosystem to seamlessly connect with Telegram's 900 million users, greatly promoting the expansion of the TON ecosystem.
4. USDT deployment
Another highlight of the TON ecosystem is the deployment of USDT.
USDT is a stablecoin. Simply put, its value is pegged to the US dollar, and 1 USDT is equivalent to 1 US dollar.
Stablecoins are very important in the field of decentralized finance (DeFi), especially in financial applications such as lending, borrowing, and insurance.
In April 2024, Tether expanded USDT to the TON network, marking TON's official entry into the stablecoin field. You can think of this as the "dollar" in the TON ecosystem, which greatly enhances TON's financial service capabilities.
Moreover, the issuance of USDT on TON has grown very rapidly, surpassing Cosmos and Near, becoming the network second only to Tron, Ethereum, Solana, Avalanche and Omni.
The USDT issuance on TON grew by 300%, while DeFi activity on TON grew by 500%, exceeding the growth rates of Polygon and Arbitrum.
The introduction of USDT not only makes TON's financial services more powerful, but also attracts more developers and project parties to enter the TON ecosystem and develop stablecoin-related applications.
This has injected new vitality into the TON ecosystem and provided more application scenarios and market opportunities.
5. Community support: strong user base
TON's success is inseparable from the support of the community and developers. In March 2024, TON launched the OpenLeague Super League with a total prize of US$150 million, which greatly promoted community participation and market attention.
You can think of this competition as a large-scale developer competition. Because of the generous prize money, it attracts a large number of developers and users to participate.
In addition, Telegram is working with the TON Foundation to distribute 50% of the proceeds to creators within Telegram, further motivating content creators and developers.
It is worth noting that in May 2024, Notcoin tokens were listed on several well-known exchanges at the same time. Its market value increased by US$2 billion within a week, and its 24-hour network-wide trading volume even reached US$4.646 billion at one point, second only to Bitcoin, Ethereum and USDT.
The popularity of Notcoin has not only attracted the market's attention to the TON ecosystem, but also injected new impetus into the long-term development of the TON ecosystem.
Through the analysis of the above five aspects, we can see that the TON ecosystem not only has technical advantages, but also has formed a powerful ecosystem through deep integration with Telegram, the introduction of USDT and strong support from the community.
Although it may face some challenges in the short term, TON’s long-term fundamentals remain very strong in the long run.
3. What news is worth paying attention to in the future of TON ecosystem?
Now that we have discussed the short-term challenges and long-term potential of the TON ecosystem, let’s take a look at what highlights of the TON ecosystem are worth looking forward to in the future.
1. Social fission and flywheel effect
In the bull market of 2024, the crypto industry is facing the dilemma of "no one taking over from each other", market sentiment is low, and new directions and narratives are urgently needed.
The TON ecosystem has injected new vitality into the market through its unique "social fission" and "flywheel effect".
What is social fission?
Simply put, TON brought a large number of new users and transaction volumes through Telegram's huge user base.
It’s like when you share an activity in your circle of friends, your friends will also participate after seeing it, forming a “fission” effect.
What is the flywheel effect?
The flywheel effect can be understood as a positive cycle. For example, TON attracts more users through liquidity pools and incentives. The more users there are, the greater the transaction volume, the more active the market is, and more people are attracted to join, forming an accelerating cycle.
For example, Notcoin and Dogs projects on TON have initially demonstrated this effect.
Exchanges benefit from this as attracting new users and increasing trading volume are key to maintaining their revenue.
This is also the reason why Binance wants to vigorously support the TON ecosystem.
2. Investor confidence: Pantera’s major investment
In May 2024, Pantera, a top European and American crypto investment institution, announced the largest investment in the TON ecosystem in history. Although the specific amount has not been disclosed, it is generally speculated in the industry that it is at least US$250 million.
Why is this important?
Pantera's investment is not only a high recognition of TON's technology and market potential, but also injects new confidence into the entire market.
Just as a well-known investor is optimistic about a project, other investors will follow suit and invest money, further enhancing the market's confidence in TON.
This investment also marks that after the failure of the early ICO, Telegram and TON ecosystem have once again gained support from mainstream investment institutions in Europe and the United States. This may attract more investors to follow up and further promote the development of TON.
3. New narrative: Potential for mass user adoption
Another highlight of the TON ecosystem is that it provides a brand new narrative, especially in terms of large-scale user adoption. Whether in gaming, social networking, entertainment and other application scenarios, TON has shown great potential.
What is the “new narrative”?
Simply put, TON is not just a technology platform, it may also bring new application scenarios and economic models.
For example, TON can attract a large number of users through Telegram applets.
If a TON applet with 100 million Telegram users emerges, it will be a sign of true mass adoption of the crypto industry.
These innovations are not just technological breakthroughs, they may also inject more vitality into the TON ecosystem and attract more developers and users to participate.
Summarize
In general, although the TON ecosystem faces some challenges in the short term, in the long run, TON's fundamentals remain very strong.
TON not only has advanced technology, but also relies on Telegram, a social platform with 900 million users, and is constantly expanding its application scenarios.
Whether it is social networking, games, or financial services, TON has shown great potential.
Bitcoin is the cornerstone belief of crypto assets, Ethereum is the financial service ecosystem of smart contracts, BNB is the world's largest exchange ecosystem, and Solana is a magical existence.
TON is rising rapidly thanks to its crypto ecosystem built around social networks, and it has the opportunity to become the fifth largest crypto ecosystem.
Therefore, I believe that the TON ecosystem is a track worthy of long-term attention.
However, the above is just my personal experience sharing and does not constitute any investment advice.
Finally, do you think TON ecosystem still has a future? Will you continue to hold TON?
You are welcome to leave a message in the comment area and we can discuss together.
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