Regulatory Scrutiny Sparks Toncoin Plunge and Crypto Market Jitters

Toncoin's price plunged over 5% to $2.165 on November 3, 2025, as Nasdaq reprimanded TON Strategy, a major token holder, for a rule violation in a $272.7 million purchase of the cryptocurrency, according to a CoinDesk report. The sell-off accelerated amid surging trading volumes—reaching 5.76 million tokens in 24 hours—nearly 1.5 times the average, signaling strong bearish momentum. The price broke key support levels, forming a technical low near $2.162 before a brief rebound hit resistance at $2.19.

The turmoil stemmed from a Nasdaq letter reprimanding TON Strategy for failing to secure shareholder approval before issuing stock to fund the Toncoin acquisition, according to Coinotag. The deal, part of a $558 million private investment in public equity (PIPE) financing announced in August 2024, allocated nearly 49% of proceeds to purchasing Toncoin. Nasdaq highlighted that the stock issuance exceeded 20% of outstanding shares, triggering mandatory shareholder approval requirements. While the exchange stopped short of recommending delisting, calling the violation unintentional, the reprimand cast a shadow over TON Strategy's efforts to legitimize its public treasury focused on the token, as noted by Cointelegraph.

The incident underscores growing regulatory scrutiny of corporate crypto strategies. TON Strategy, formerly Verb Technology Company, restructured in August 2024 to build a publicly listed TON Treasury Strategy Company, appointing Manuel Stotz, a former TON Foundation president, as executive chairman, according to Coinotag. Despite Nasdaq's leniency, the reprimand raises questions about governance in volatile asset classes. "Such thresholds exist to protect investor interests in equity dilutions," noted financial compliance experts cited in regulatory analyses.

The ripple effects extend beyond Toncoin. Polestar (PSNY), the Swedish EV maker, faces a parallel Nasdaq compliance crisis, receiving a minimum bid price deficiency notice on October 31, 2025, as reported in a MarketMinute article. Its shares traded at $0.26, far below the $1 threshold, with 180 days to rectify the issue. Polestar's struggles—compounded by prior accounting errors and delayed filings—highlight systemic risks for international firms on U.S. exchanges. Similarly, Global Engine Group Holding (GLE) received a Nasdaq notice for trading below $1, exploring a reverse stock split to regain compliance, according to Seeking Alpha. These cases reflect a tightening regulatory environment, with Nasdaq proposing stricter rules, including accelerated delisting for firms under $5 million in market cap.

Analysts warn that TON Strategy's violation could deter institutional adoption of crypto treasuries. CEO Veronika Kapustina recently noted "early signs of a bubble" in digital asset treasuries, a caution amplified by the Nasdaq reprimand. Meanwhile, Toncoin's price volatility mirrors broader crypto market jitters, with the CoinDesk 20 index dropping 3.7% in 24 hours.

For TON Strategy, the path forward requires navigating regulatory expectations while maintaining investor confidence. Nasdaq's reprimand, though non-punitive, mandates stricter compliance for future equity issuances, the Cointelegraph piece observed. The company's ability to balance aggressive Toncoin accumulation with governance transparency will be critical.

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