Can Toncoin Really Onboard A Billion Users? A Deep Dive Into The Future of Crypto
It’s been the holy grail question ever since cryptocurrency began to capture mainstream attention: Which project will be the first to onboard a billion users?
Up until now, there hasn’t been a solid answer. But with Toncoin moving fast, things are changing. TON might just be the coin that does it. Will this be the crypto that leads us to massive adoption? Let’s dig into what Toncoin offers, how it stands out, and where it might be headed.
What Exactly is Toncoin?
Toncoin has a pretty interesting origin story. It started as Telegram Open Network (TON), a project spearheaded by the creators of Telegram, Nikolai and Pavel Durov. Back in 2017, TON was intended to be a revolutionary blockchain that integrated seamlessly with the Telegram app.
Fast forward to 2018, and the project raised a staggering $1.7 billion during its ICO (Initial Coin Offering)—the second largest in history at the time. But, as usual, the regulators didn’t let things slide. The U.S. Securities and Exchange Commission (SEC) stepped in and stopped TON from officially launching in 2019. The crackdown didn’t come out of nowhere either. Facebook had similar issues when it announced Libra, its own digital currency proposal. Governments worldwide were deeply concerned about tech companies launching their own currencies.
To avoid further legal entanglements, Telegram stepped away from the project in 2020, but not before locking up all the raised funds. The project then rebranded to The Open Network (TON) and officially relaunched its Proof-of-Stake network in 2022. Toncoin, the native token, lives on as part of this decentralized ecosystem with big ambitions.
Who’s Behind Toncoin?
The Durov brothers aren’t new to controversy or going against the grain. Before launching Telegram, they created VK (Vkontakte), the dominant social media platform in Russian-speaking countries. They eventually left after refusing to comply with government censorship. Telegram was supposed to be their middle finger to the controlling oversight they’d experienced before.
With TON, some people question just how “independent” it really is from Telegram. While the official narrative says that Telegram and its founders are no longer directly involved, there are still whispers about ongoing connections. It's worth noting that Andrew Rozov, a former VK CEO, is deeply involved in both The Open Platform (which manages Toncoin development) and the TON Foundation, a Swiss nonprofit.
Even if they claim no formal ties exist anymore, it seems impossible to completely separate the two. After all, Pavel Durov himself confirmed that he holds Toncoin in his personal portfolio. Whether they're directly steering the project or not, the Durov brothers' legacy looms large over its direction.
Bridging Telegram And Crypto
What really makes Toncoin intriguing is its gradual integration into Telegram. At first, this happened quietly—you could use Toncoin to send payments between users or access human-readable wallet addresses. Nothing earth-shattering.
But things gained momentum with deeper integrations. Games and new payment features began to pop up inside the Telegram ecosystem, enhancing user experience.
Here’s the kicker: Telegram boasts over 1 billion monthly active users. That’s a massive audience that few other crypto projects could dream of tapping into. Most people are already comfortable using Telegram, which means the learning curve for Toncoin might not be as steep as we’ve seen with other cryptos. This is partially why Toncoin’s price has surged in recent months.
Game On: How Gaming Supercharged Toncoin’s Growth
Gaming is one of the biggest factors behind Toncoin's rise. In January 2022, the project partnered with Animoca Brands, a top name in blockchain gaming, to dive into the space. What came next was a list of games like NCoin and Hamster Combat that became major drivers of user engagement.
What’s surprising about NCoin is that it was originally just an experiment. Yet, it hit a $2.5 billion market cap before even launching its token. That’s insane for something that started as a proof-of-concept. To top it off, Hamster Combat—another Tap-to-Earn game—became so popular that in some countries, like Iran, governments accused it of interfering in elections. It sounds ridiculous, but it highlights the grip these games have on users.
This gaming narrative is crucial when you think about the future of mass adoption. People who’d never invest in crypto might start playing fun, rewarding games and suddenly find themselves owning Toncoin.
What’s Next? Expanding Into Payments
Games aren’t the only arena Toncoin is chasing. In early 2023, Telegram announced it would only accept Toncoin for advertising payments. If you’re a channel owner and you decide to monetize with ads, not only would you be obligated to buy Toncoin, you'd also enjoy a 50% revenue share from the ads you run. Talk about a win-win situation!
This pivot toward payments is big. It means organic demand for Toncoin will keep increasing, especially as more Telegram users and advertisers hop on board. On top of that, major exchanges aren’t missing the party either. Some, like Biet, offered up to 7% cashback to customers making purchases with Toncoin, using their branded MasterCard.
Keep in mind that these kinds of crypto exchange incentives can significantly drive usage, especially in offshore markets. It’s another tool in the bag for ensuring that Toncoin remains top of mind in an ever-crowded crypto space.
Institutional Interest Is Growing
It’s not just regular users and gamers who are excited about Toncoin. Big money is taking notice. In March, 21Shares launched a Toncoin ETP (short for Exchange-Traded Product) on the Swiss stock exchange. This shows institutional investors eyeing the token for its growth potential.
The institutional vote of confidence was reinforced when Pantera Capital—one of the biggest names in the crypto VC scene—made its largest investment ever into a Toncoin-exclusive fund. When major firms double down like this, you can wager they see an enormous upside.
Pantera even predicted that if Toncoin can keep adding real-world use cases like payments and continue growing its partnerships, it could hit a $150 billion market cap. If that happens, TON’s price could surge to $70, which isn’t hard to imagine given its current momentum.
The Stars Align: A New Digital Currency for Telegram
In June 2023, Telegram launched its own in-app currency called Stars, which can be used to pay for digital services inside the Telegram app. Stars can be easily exchanged for Toncoin via one of Toncoin’s marketplaces. This strategy seems to be building a bridge between regular in-app transactions and the larger Toncoin ecosystem.
Additionally, mini apps on Telegram can now earn ad revenues denominated in Toncoin, creating another way to put TON directly into the hands of developers and users. Much of this ad revenue will likely be sourced from crypto exchanges. Given how many exchanges are already supporting Toncoin, this feels like a natural fit.
Toncoin Could Power Telegram’s Move Into Decentralized Finance
In the latest news, TON is accelerating even further toward decentralized finance (DeFi). It recently announced plans to introduce a decentralized Bitcoin bridge, allowing users to move assets between Bitcoin and Toncoin’s network. Previously, TON could only bridge with Ethereum, so this is a big leap in terms of attracting liquidity into its DeFi ecosystem.
Toncoin’s also set its sights on further integrating with Tether, the most widely used stablecoin in the crypto world today. Expanding this partnership will make it easier to convert Tether into fiat currencies directly through Telegram, though it does tighten up Telegram’s KYC rules as a result.
It’s this same strategy that might turn Telegram into a global payment system. If successful, it will position Toncoin as a critical piece in how users move money globally, at minimal fees, and with little interference.
Centralization Concerns: Who Owns Toncoin?
Earlier in 2023, we learned something intriguing: Telegram and the TON Foundation collectively control about a fifth of the total supply (over 5 billion Toncoins). Plus, more than two-thirds of Toncoin’s total supply is held by just the top 10 wallets.
While some believe this level of concentration is risky, others argue the opposite. Since these wallets are likely linked to Telegram or other entities deeply invested in Toncoin’s success, it’s unlikely they’d dump their holdings on the public. But, if things were to go wrong, centralization could pose a real vulnerability, especially when it comes to hacks or regulation.
The Road Ahead: What’s on Toncoin's Roadmap?
Toncoin has outlined an ambitious roadmap. The team plans to launch groundbreaking features like gasless transactions (now live), integration with new blockchain marketplaces, a TON browser, and even innovations that will make gaming on Telegram even smoother.
More importantly, the roadmap aims to decentralize power. The TON Foundation is set to dissolve within five years, paving the way for true decentralization. Reaching that goal will require a lot of moving parts, but if they pull it off, Toncoin could become a model for blending decentralized tech with mainstream adoption.
Risks on the Horizon: Regulation, Competition, and Technology
Despite all its progress, it would be naive to think Toncoin doesn’t face challenges.
First and foremost is regulation. Governments haven’t exactly warmed up to the idea of big tech companies creating their own currencies. Just ask Facebook’s Libra team, who had to pivot when regulators shut them down. Should Telegram’s growing crypto ecosystem threaten national currencies, there’s a good chance we’ll see greater scrutiny from regulators around the globe.
Then there’s adoption. Even though NCoin and Hamster Combat attracted millions of gamers, only 10 million wallets exist on-chain compared to the tens of millions playing. This hints at a disconnect between speculative gaming and actual adoption of Toncoin as a currency.
Finally, competition from other blockchain projects is only going to intensify. While TON is the first to make significant strides in integrating crypto into social media, projects like Aptos, Sui, and even Solana are gearing up to take their own shots at the same game.
Conclusion: Will Toncoin Be the One?
Toncoin is uniquely positioned right now. It has the advantage of first-mover status, strong institutional backing, and an extensive user base through Telegram. But challenges remain, especially when it comes to adoption, regulation, and decentralization.
Can Toncoin onboard a billion users? It’s more viable than many competitors, but only time will tell if it can get there ahead of the pack. For now, though, it’s a digital currency to watch closely—a serious contender in the crypto space.
What do you think? Can Toncoin achieve its ambitious goals, or do you see another crypto project getting there first? Let us know in the comments below!