VC Confidence Grows: TON Foundation Makes $400m Token Investment

The TON Foundation has obtained more than $400 million in token-based funding from some of the most esteemed venture capital firms.

Note from the Editor: This article has been revised to clarify that the $400 million figure represents a token-based investment in Toncoin, not a traditional funding round and includes a comment from a TON representative.

As stated in a press release from March 20, investors include Sequoia Capital, Ribbit, Paradigm, Benchmark, and Kingsway. This investment signifies growing institutional interest in TON's infrastructure and its ability to expand financial applications within Telegram's ecosystem.

"These venture capital firms possess over $400 million worth of Toncoin, which serves as the native cryptocurrency of the TON blockchain. A 'token-based investment' refers to funding provided in the form of Toncoin, as opposed to traditional equity or cash. It's crucial to note that this is not a fundraising round. Instead, these VCs are expressing confidence in the future success and utility of the TON blockchain, its burgeoning ecosystem, and its potential to offer real-world utility for crypto holdings, especially within Telegram."

-TON spokesperson

TON's close relationship with Telegram has emerged as a significant growth catalyst. Earlier this year, TON became the foundation for Telegram's Mini Apps Ecosystem, enabling developers to build integrated financial services and interactive experiences for Telegram's vast user base of over 1 billion monthly active users.

This association has sparked considerable growth, attracting investor attention. Specifically, the press release mentions that the number of active accounts on the TON network has risen from 4 million to 41 million in the past year. Additionally, Toncoin (TON) holders now number 121 million, surpassing the total number of Bitcoin wallet holders.

TON Foundation now seeks to engage 30% of Telegram's active users – approximately 450 million people – by 2028. The plan involves broadening decentralized finance tools, multiplayer mini-games, and in-app payment solutions, while also introducing on-chain collectibles and rewards.

The Future Outlook

The $400 million token-based investment is anticipated to fuel further growth for TON by financing user acquisition, developer incentives, and product development. As Telegram's influence expands, TON's role as the foundation for financial services within the platform could strengthen its position as a major player in the blockchain industry.

"The TON team stands out as the best in the world at the intersection of consumer product thinking and crypto infrastructure. With the global reach of Telegram, we're excited to see where they go," said Shaun Maguire, partner at Sequoia Capital.