Altcoin projects remain viable with new partnerships and development activities despite the harsh crypto winter. Analysts at the consulting giant Fool say a project linked to Telegram will lead the way.
This altcoin could be a hidden gem
Despite the Terra and FTX crises, a few altcoins still manage to defy the challenges. For example, Toncoin (TON) has gained roughly 25% over the past month. Thanks to this momentum, they are now the 26 largest cryptocurrencies in the world.
Toncoin is a Layer 1 Blockchain designed by the popular worldwide messaging app Telegram. Like other popular Tier 1s, Toncoin offers fast transactions and near-zero fees. It also provides developers with the potential to build decentralized applications on the network. In this regard, Telegram works very similarly to Ethereum.
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If you want to receive all $TON-related news and updates, discover our lists and find accounts that will help you always stay up-to-date with TON ecosystem news.#Toncoin
👉https://t.co/V7IFAHlLTO pic.twitter.com/h8bRPZ8JLJ
— TON (@ton_blockchain) August 8, 2022
Unlike others, Toncoin is a Blockchain specially designed for Telegram users. You can interact with this Blockchain via Telegram. For example, in addition to sending messages to other users on Telegram, you will one day be able to send them crypto payments via a Blockchain wallet. That’s why the deep relationship with Telegram is so important. It basically provides Toncoin with an established user base of hundreds of millions of users.
Why are analysts expecting explosive growth?
Toncoin, in partnership with Telegram, launched a new auction initiative at the end of October that gives Telegram users the right to buy and sell Telegram usernames. However, people need to use Toncoin to pay for these usernames. With this new functionality, the demand for Toncoin is increasing.
The blockchain initiative is notable as it generates ongoing and recurring demand for Toncoin. You need to have Toncoin to pay for these usernames. So if you don’t have Toncoin right now, you should go out and buy it. These usernames will become very important if Telegram eventually uses Toncoin for crypto payments.
You can now send #Toncoin directly within Telegram chats!
It’s a new way to send Toncoin without transaction fees to any Telegram user. With this service, you’ll no longer need to enter long wallet addresses and wait for confirmations.
Watch the video and test the new feature! pic.twitter.com/EtXSMFtJj6
— TON (@ton_blockchain) April 26, 2022
Regulatory risks should not be overlooked
With the above, there are significant risks involved in investing in Toncoin. The US regulatory SEC put pressure on Telegram in 2018. This was when Telegram first set up the Telegram Open Network (“TON”) and launched a $1.2 billion ICO for this Blockchain project. The SEC’s move came to an end with Telegram’s promise not to work with new tokens until 2023. Telegram Open Network eventually shut down and disappeared under all that regulatory scrutiny in 2020.
Then, in 2021, Telegram Open Network suddenly re-emerged as Toncoin. It rebranded itself as The Open Network (“TON”). Telegram claims that Open Network was built by top coders unrelated to the original Telegram team. These coders simply used some of the open source code circulating online and created a new Blockchain based on it. Pavel Durov, CEO of Telegram, says he supports Open Network. However, he strongly points out that this is not part of Telegram.
All in all, it will be interesting to see how the SEC will react and how the US regulatory environment will affect both Telegram and Toncoin. Toncoin is currently listed on Coinbase, the largest US cryptocurrency exchange. However, Telegram username auction is blocked while US Telegram users are allowed to use the messaging feature. cryptocoin.comFool analysts you follow are expecting explosive moves for Toncoin in case it takes the lead.
