Toncoin Drops 4.15% Amid Verb Technology's $558M Investment in Cryptocurrency

Toncoin's latest price was $3.42, down 4.15% in the last 24 hours. This significant drop in price comes amidst a series of strategic developments that could reshape the cryptocurrency's future. Verb Technology, a company listed on Nasdaq, has announced a major transformation. The company plans to rebrand as TON Strategy Co. (TSC) and become the first publicly traded company to hold Toncoin as a treasury reserve. This move follows a substantial investment of $558 million, led by Kingsway Capital, with participation from over 110 investors, including institutions and crypto experts. The investment is part of a Private Investment in Public Equity (PIPE) agreement, where the company will sell approximately 58.7 million shares at $9.51 per share. The transaction is expected to close by August 7, 2025, subject to customary conditions.

After the deal, Verb Technology will allocate the majority of the funds to purchase Toncoin, the native cryptocurrency of The Open Network (TON) blockchain. The company aims to make Toncoin the primary asset of its treasury reserves, positioning TSC as one of the largest holders of Toncoin globally. This strategy is expected to yield staking rewards, which could generate positive cash flow and sustain the company's Toncoin strategy. The company's core business activities will continue and may even expand alongside the new treasury project.

This development is closely linked to recent activities by Telegram and the TON Foundation. In January, they announced that TON would be the official blockchain for Telegram's growing digital ecosystem. This integration allows Telegram users to operate with Toncoin directly within the app, supporting mini apps, ads, and tokenized ownership of assets like usernames and NFTs. Telegram recently launched its TON Wallet, a secure crypto wallet, to 87 million users in the U.S., with over 1 billion monthly active users globally, making it the fastest-growing large messaging platform.

Manuel Stotz, who will become the Executive Chairman of TSC, highlighted Telegram's significance in the global crypto community and the strategic advantage of accumulating long-term Toncoin due to staking revenues. Peter Smith, the CEO of Blockchain.com and future Special Advisor to the company, described this development as a major milestone in crypto adoption, praising the team's vision and the new management's blend of crypto knowledge and institutional background. Rory J. Cutaia, the CEO of Verb Technology, expressed excitement about collaborating with the new management and the potential long-term value this transaction will bring to VERB shareholders.

Verb Technology's rebranding to TON Strategy Co. and its $558 million fundraising plan reflect a growing trend among public companies adding digital assets to their balance sheets. The company's shift toward blockchain finance, in partnership with Kingsway Capital, aligns with the TON Foundation's earlier efforts to raise funds for a similar treasury initiative. This move positions Verb as a pioneer in the adoption of Toncoin as a primary reserve asset, with the potential to earn rewards through staking and grow its exposure to Toncoin.

The incoming leadership team includes Veronika Kapustina as CEO and Sarah Olsen as CFO, with Blockchain.com’s Peter Smith acting as a special advisor. The company has confirmed its commitment to transparency and compliance once the TON treasury is live. After the transaction closes, Verb expects 77% of its raised cash to sit in liquid reserves, equaling roughly 5% of Toncoin’s circulating market value. Trading on Nasdaq will continue under the ticker "VERB," with updates on treasury growth to follow in the coming weeks.

Verb Technology's $558 million Toncoin strategy is not just a name change but a significant bet on Telegram's growing role in crypto and a push to build one of the largest TON treasuries in the market. This move underscores the growing institutional interest in Toncoin and its potential as a key player in the crypto ecosystem. The company's decision to hold Toncoin as a treasury reserve and its alignment with Telegram's digital ecosystem position it as a leader in the adoption of blockchain technology and digital assets.