As Bitcoin consolidates around its previous all time high, a new player worth $23 billion has emerged in the top 10 largest coins by market cap. Strangely, this token’s rise has been mostly missed by Crypto communities. But, over the past two months, the token’s chain has seen its total value locked increase by over 700% to nearly $150 million, with its price also rising over 200%. This token is The Open Network (TON).
So what is it? “Telegram Open Network” was the original name of TON, a proof-of-stake blockchain built by the creators of the popular messaging app, Telegram. However, due to SEC regulatory concerns and an $18.5 million settlement, Telegram cut its ties with the project in 2020. The community, in the form of the TON Foundation, took over to finish what Telegram started. Recently, its ties with its old creators have also been giving it an edge in the blockchain adoption battle.
Telegram’s messaging app is a cornerstone of crypto and its culture. Similar to Twitter, now X, it is a go-to source for information and communication for all crypto matters. The vast majority of crypto projects have a Telegram community. Within them, developers and the community have opportunities to share developments, memes and grievances. Many billion dollar crypto projects started with a token, a Telegram chat and a dream. Telegram is crypto.
Now, Telegram is revitalising its crypto dream. Last November, the TON Foundation announced a collaboration with Telegram and integration into the messaging app. Recently, the TON society, a developer community, announced a 1-million (~$6.7 million) TON incentivisation program for Telegram users. This aims to increase adoption of digital identity verification on Telegram using palm scanning software to reduce AI bot usage. Some might consider the technology dystopian, with connotations of impending social credit scores. Regardless, Telegram users who adopt it will be integrated into the TON ecosystem. Last month, the Telegram Ad Platform built on TON, also launched. Telegram channel owners can now place adverts in their channels and receive 50% of the revenue in the form of TON.
With Telegram serving 800 million monthly active users, this setup of a large consumer app directly integrating crypto could be the most likely approach to enabling mass adoption of crypto seen so far. In collaboration with TON, Telegram’s dream of becoming an all encompassing super app and competing against WeChat, could be realised. As a consequence, it could also potentially drive crypto into the hands of a billion users.