The TON Foundation announced on Monday, August 11, that Coinbase's investment arm has invested in Toncoin (TON), considering this step a "strong vote of confidence" in The Open Network ecosystem, which continues to expand its presence in the cryptocurrency market.
This investment comes to enhance the list of supporters $TON from major venture capital firms, such as Sequoia Capital, Ribbit Capital, and Benchmark, which injected about $400 million last March through a direct purchase of Toncoin, in a deal that differs from traditional funding rounds.
Bloomberg reports revealed in July that the institution plans to establish a treasury company for digital currencies holding at least $400 million of Toncoin, in a strategic move to support the stability of its ecosystem.
The success of $TON is closely tied to the Telegram app, which has over a billion monthly active users, and the institution bets on converting a segment of them into active cryptocurrency users. Toncoin acts as the primary utility token for blockchain-based mini-applications on Telegram, among which the Notcoin game has surpassed 650,000 users at its peak.
These applications contributed to raising the total value locked (TVL) in the TON ecosystem to a record level of nearly $800 million in January 2024, before currently declining to about $152.48 million as the demand for quick-tap applications decreased.
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