Coinbase Ventures Backs Telegram-Affiliated Toncoin, Valuing Blockchain at $1B

Coinbase Ventures has invested in Toncoin, the native asset of The Open Network blockchain, which is underpinning Telegram's web3 infrastructure. The investment is seen as a significant signal of confidence, but the size of the holding was not disclosed. This adds to recent TON developments, including a $558 million private placement and a $28.5 million Series A round led by Ribbit Capital. Toncoin is the 26th-largest cryptocurrency with a market capitalization of approximately $8.7 billion.

Coinbase Ventures, the investment arm of the popular crypto exchange Coinbase, has recently acquired Toncoin (TON), the native token of The Open Network blockchain that powers Telegram's web3 infrastructure. The investment, though the size of the holding remains undisclosed, is seen as a significant signal of confidence in the project's potential.

The TON Foundation announced Coinbase Ventures as a new Toncoin holder, stating that the support from a major venture firm speaks volumes. Manuel Stotz, president of the TON Foundation and incoming executive chairman of Verb Technology, revealed that Coinbase Ventures purchased the TON tokens directly from Telegram. A Coinbase Ventures spokesperson confirmed the investment but declined to specify the amount, the seller, or the date of the transaction.

This investment follows a string of recent developments for TON. Last week, Nasdaq-listed Verb Technology (ticker VERB) announced a $558 million private placement in partnership with Kingsway Capital to become the first publicly traded firm to hold Toncoin as its primary treasury reserve asset. The company plans to rebrand as TON Strategy Co. after the deal closes. Additionally, TON developer The Open Platform raised $28.5 million in a Series A funding round led by Ribbit Capital at a $1 billion valuation.

Toncoin is currently the 26th-largest cryptocurrency by market capitalization, with a valuation of approximately $8.7 billion and a fully diluted valuation of roughly $17.4 billion [1].

The integration of TON with Telegram, a messaging app with over 1 billion monthly active users, is seen as a key advantage for the blockchain. However, it also presents a dependency risk, as noted by Yat Siu, co-founder and executive chairman of Animoca Brands.

This latest investment by Coinbase Ventures underscores the growing interest and support for TON and its potential as a distribution play within the crypto ecosystem.

References:
[1] https://www.tradingview.com/news/the_block:77284e649094b:0-coinbase-ventures-buys-ton-tokens-directly-from-telegram-says-ton-foundation-exec/
[2] https://coinmarketcap.com/academy/article/ton-news-ton-strategy-raises-dollar558m-to-build-largest-toncoin-treasury-as-telegram-integration-deepens
[3] https://www.theblock.co/post/366414/coinbase-ventures-buys-ton-tokens-directly-from-telegram-says-ton-foundation-exec?utm_medium=rss&utm_source=news.xml