Toncoin Performance Update

Toncoin (TON) has outpaced major cryptocurrencies over the past 24 hours, rising by 7.95% while both Bitcoin and Ether remained flat, leading to a 0.1% dip in overall cryptocurrency market capitalization.

Analysts predict further price appreciation for Toncoin throughout September, contingent on favorable macroeconomic conditions, such as a potential U.S. Federal Reserve rate cut.

“Toncoin’s performance in September could slightly outperform the broader market, largely dependent on macroeconomic factors,” stated Ryan Lee, Chief Analyst at Bitget Research. “If market sentiment improves, Toncoin might retest the $6.50 to $7.00 levels. However, if the overall environment remains unchanged, the price is likely to fluctuate between $5.00 and $6.00.”

Toncoin’s price held just below the $7 mark until August 24, when it plummeted following the arrest of Telegram founder Pavel Durov by French authorities. While Toncoin is distinct from Telegram, the messaging platform initially developed some underlying technology and supports it.

After Durov’s release on bail, Toncoin reached a local bottom of around $4.55 at the start of August. Since then, the cryptocurrency has gradually recovered to above the $5 mark.

Telegram’s Crypto Exposure

Although Telegram officially has no affiliation with Toncoin, its 2023 financial statement indicates significant crypto-related exposure, according to a Financial Times report. Telegram reportedly held approximately $400 million in digital assets by year-end, exceeding cash and cash equivalents.

Analyst Min Jung from Presto Research noted that over 40% of Telegram’s 2023 revenue stemmed from its integrated wallet and the sale of collectibles related to Toncoins.

Telegram accepts Toncoins for various services, including selling collectibles like usernames and virtual phone numbers, while also featuring a wallet function for users to manage crypto assets.

Despite its crypto-heavy business model and significant liabilities, Telegram raised more than $2.3 billion in convertible bonds from high-profile investors, indicating positive sentiment from traditional markets regarding its crypto exposure.