Breaking News

Open Network Blockchain TON Expands with Telegram’s Growth

Open Network Blockchain TON Expands with Telegram's Growth

The Open Network (TON) blockchain, associated with Telegram Messenger LLP, has seen significant growth this year, according to Bloomberg on July 5. Benefiting from Telegram’s 900 million monthly active users, TON’s assets have surged by 1,400%, briefly exceeding $1 billion.

This rapid growth has reignited hopes for Telegram to become a “super-app” integrating social interactions, gaming, and financial tools. Pantera Capital Management LP views Telegram as a unique platform capable of incorporating Web3 into an open blockchain network without regulatory issues.

Read more: What is Hamster Kombat? A Complete Guide About Tap to Earn Game

Founded by Russian brothers Pavel and Nikolai Durov in 2013, Telegram raised $1.7 billion through an initial coin offering (ICO) in 2018 to launch the “Telegram Open Network.” However, the project faced scrutiny from the U.S. Securities and Exchange Commission (SEC). In 2020, Telegram settled with the SEC, returning ICO proceeds and paying an $18.5 million penalty.

Post-settlement, the TON Foundation became a separate entity from Telegram Open Network and Telegram. Despite this separation, some skeptics argue that TON still heavily relies on Telegram and aligns with its interests. In February, Telegram announced it would use the TON blockchain exclusively for payments in a new ad-revenue sharing program, coinciding with a rise in key metrics for TON. Daily active users on TON recently surpassed 350,000, according to TonStat data.

With increasing global digitalization, instant payment solutions crossing borders are gaining popularity. Richard Galvin, co-founder and CEO of DACM, a crypto investment firm, called these solutions a “killer app.” DACM invested in TON tokens in early 2023.

However, the growth of crypto apps faces challenges due to know-your-customer (KYC) and anti-money laundering (AML) regulations. On June 3, TON implemented new KYC and AML checks, requiring users to provide personal information for key wallet features.

Read more: Bitcoin and Crypto Bull Run 2024: Check Latest Updates

TON’s recent asset surge is attributed to popular mini-apps like Hamster Kombat and Notcoin, which have drawn millions of users. Additionally, a partnership with Tether, announced in April, boosted USDT usage on TON.

Looking forward, experts predict that payments and remittances will be crucial use cases for TON. Cosmo Jiang, a portfolio manager at Pantera, believes consumer-facing platforms powered by blockchain software will be a key growth area in crypto over the next three years. TON aims to capture a third of Telegram’s user base by 2028, positioning itself to capitalize on this trend.