Summary
The market capitalization of Toncoin (TON) witnessed a considerable decrease by billions of dollars after The Open Network made adjustments to rectify the previously inflated circulating supply data. This alteration resulted in Toncoin losing its position among the top 10 most valuable cryptocurrencies.
Fluctuations in Market Capitalization
The Open Network communicated via Telegram that data aggregators would now track Toncoin’s market capitalization differently. The revised method excluded Toncoin held by Telegram, The Open Network Foundation, and the TON Believers Fund. Consequently, Toncoin’s market capitalization plummeted by over $7 billion promptly, according to CoinGecko data. Post this correction, Cardano (ADA) reclaimed its position as the 10th most valuable cryptocurrency, valued at $15.8 billion, with Toncoin slightly trailing at around $15.6 billion.
Data Aggregation and Transparency
The adjustment was made by The Open Network to align with industry standards following a comprehensive review of the TON blockchain data. The reported data by CoinGecko can be verified with information from tontech.io and other sources. Nonetheless, the management of tontech.io remains undisclosed, although the site links to ton.org, detailing the community’s structure, which comprises the TON Foundation, TON Society, and other subgroups.
Market Response and Community Feedback
The correction has sparked reactions within the cryptocurrency community. After TON surpassed ADA earlier, members of the Cardano community raised concerns about TON’s price stability despite the significant decline in market cap. Chris O’Connor, the co-founder of the DAO Cardano Ghost Fund, accused The Open Network of artificially inflating its market capitalization on Twitter (now X).
Regulatory Context and Project Progression
In 2020, the U.S. Securities and Exchange Commission (SEC) charged Telegram for violating securities laws concerning the offering of the network’s native token “Grams,” resulting in an $18.5 million civil penalty and $1.2 billion returned to investors. Even though Telegram halted the project in 2020, development of The Open Network continued under an external community of developers.
Recent Developments
Over the past year, TON’s price surged by over 240%, reaching $6.49. This price increase was partially driven by the popularity of Notcoin (NOT), a Telegram-based game and cryptocurrency where users earn rewards for tapping a digital gold coin repeatedly.
Closing Thoughts
The adjustment of Toncoin’s circulating supply data has had a significant impact on its market position, highlighting the importance of accurate data in the cryptocurrency sphere. This event underscores the ongoing competition among blockchain projects for top rankings and credibility within the industry.
