Is Telegram's $TON Worth the Hype? (Pros & Cons)

Summary

The video explores Telegram's native token, TON Coin, which has made a remarkable comeback after its initial ICO was halted by the SEC. With strong tokenomics, impressive blockchain tech, and a dedicated community, TON has risen to the top 10 cryptocurrencies. However, it faces challenges such as programming language complexity, low developer count, and concerns over decentralization. Despite these, TON has significant potential for growth, especially with Telegram's massive user base and the possibility of an IPO, which could propel TON to new heights in the crypto space.

Takeaways

• 📲 Telegram's messaging app has a native token called TON Coin, which has experienced significant fluctuations since its 2019 launch.
• 💰 TON had the second-largest ICO in history, raising $1.7 billion before being halted by the SEC, but it survived thanks to a dedicated community.
• 🏆 TON Coin has made a comeback, now ranking in the top 10 cryptocurrencies, surpassing even Cardano in market cap.
• 🔒 TON's tokenomics are favorable, with 70% of the 5 billion total tokens in circulation and a 91% community vote to freeze inactive miner wallets, locking 20% of the supply for 4 years.
• 👥 The TON team was allocated only 1.45% of the tokens, a small percentage compared to other blockchain projects.
• 🚀 TON's blockchain is known for high transaction speeds, recently setting a record for transactions per second, and is designed for scalability and mass adoption.
• 🛠️ TON's technology roadmap is ambitious, with plans to improve network infrastructure and develop projects to extend capabilities and reach.
• 💡 TON has a $340 million ecosystem fund, demonstrating commitment to future development and growth.
• 🔑 A weakness of TON is the complexity of its programming languages, which may hinder developer adoption and compatibility with other ecosystems.
• 🔒 TON's network decentralization is a concern, with only 340 validators compared to thousands in other networks, which could affect its scalability and security.
• 🐞 TON's high TPS claim was challenged by a critical bug that temporarily reduced it to one transaction per second, indicating potential stability issues.

Q & A

What is Telegram's relationship with the cryptocurrency TON Coin?

Telegram is the parent company of TON Coin, and the token is used as the fuel for many decentralized applications (dApps) running on the Telegram platform.

What was the outcome of TON Coin's initial coin offering (ICO) before it was shut down by the SEC?

TON Coin had the second largest ICO in history, raising an impressive $1.7 billion before the SEC intervened and shut it down.

Provide the third question here.

Provide the third answer here.

Outlines

00:00

📈 The Rise of TON Coin: Strengths and Tokenomics

This paragraph introduces the TON coin, a cryptocurrency associated with the Telegram messaging app, which has experienced significant growth and challenges since its launch in 2019. The coin had the second-largest ICO in history, raising $1.7 billion before being halted by the SEC. Despite setbacks, a dedicated community helped it rise to the top 10 cryptocurrencies, surpassing Cardano. The summary highlights TON's strengths, including its tokenomics, with 70% of 5 billion tokens in circulation and a successful vote to freeze inactive miners' wallets, locking away 20% of the supply for four years. Only 1.45% of tokens were allocated to the team, which is significantly lower than other projects. The paragraph also mentions TON's advanced technology, including its high-capacity blockchain capable of over 100K transactions per second, thanks to its unique asynchronicity feature.

05:01

🚀 TON's Ambitious Roadmap and Opportunities

The second paragraph delves into TON's ambitious roadmap and future opportunities. TON is not content with its current status and is focused on continuous improvement, with plans to develop various projects to extend its capabilities and reach. The network aims to support more sophisticated dApps and is flexible enough to adapt to various business needs, making it an attractive partner for businesses looking to integrate blockchain technology. The ambitious plans are backed by a $340 million ecosystem fund raised by TON. The paragraph also discusses the potential for TON to capitalize on the massive user base of Telegram, which could lead to widespread adoption of TON as a cryptocurrency and fuel for dApps. The potential for Telegram's IPO to boost legitimacy and attract investment is also highlighted, along with the possibility of TON benefiting from increased resources and development.

10:02

🛑 TON's Challenges: Complexity, Decentralization, and Legal Issues

The final paragraph addresses the challenges TON faces, including the complexity of its programming languages, which may deter developers and cause compatibility issues with other ecosystems. As of October 2023, TON had only 28 full-time developers compared to over 1,900 in the Ethereum ecosystem, indicating a significant weakness in developer support. The paragraph also discusses concerns about TON's decentralization, with only 340 validators in its network, which is far less than competitors like Solana and Ethereum. Additionally, a critical bug that temporarily reduced TON's transaction per second capacity highlights scalability issues that need to be resolved. The close ties between TON and Telegram, while beneficial, also pose a risk if Telegram's growth falters. The paragraph concludes with the potential threat of past legal issues with the SEC resurfacing, which could jeopardize TON's future.

Keywords

💡Telegram

Telegram is a widely used messaging app, particularly popular among the cryptocurrency community. In the context of the video, Telegram is not only a communication platform but also the entity behind the creation of TON (The Open Network), which has a native token called TON coin. The video discusses the potential of TON coin due to its association with Telegram's massive user base and the integration of TON into Telegram's ecosystem.

💡TON Coin

TON Coin is the cryptocurrency token associated with The Open Network (TON), which was initially launched by Telegram. The video highlights TON Coin's journey, including its record-breaking ICO, the challenges it faced with the SEC, and its resurgence into the top 10 cryptocurrencies. TON Coin's potential is tied to its tokenomics, technological capabilities, and the support of the Telegram platform.

💡Tokenomics

Tokenomics refers to the economic structure of a cryptocurrency, including its distribution, supply, and the rules governing its use. The video script praises TON Coin's tokenomics, noting the high percentage of circulating tokens, a successful vote to freeze inactive miner wallets, and a small allocation to the team, which are all seen as positive for the token's value and potential.

💡Blockchain

A blockchain is a decentralized, distributed ledger technology that underpins cryptocurrencies and enables secure, transparent transactions. TON has its own blockchain, which is highlighted in the video for its high transaction per second (TPS) capability, rapid block finality, and scalability due to its asynchronicity feature.

💡Transactions Per Second (TPS)

TPS is a measure of how many transactions a blockchain network can process in one second. The video mentions TON's record-breaking TPS, which is a testament to its high performance and ability to handle a large volume of transactions, which is crucial for mass adoption.

💡Decentralization

Decentralization refers to the distribution of power and authority away from a central point. In the context of the video, TON's decentralization is questioned due to the relatively low number of validators compared to other networks like Solana and Ethereum, which could impact its credibility and security.

💡Validators

Validators in a blockchain network are nodes that verify transactions and propose new blocks. The video points out that TON has a smaller number of validators, which could be a weakness in terms of network security and decentralization.

💡Roadmap

A roadmap is a strategic plan that outlines a project's goals and the steps to achieve them. The video mentions TON's ambitious roadmap, which includes plans for network infrastructure improvements and the development of various projects to extend its capabilities and reach, indicating a commitment to future growth.

💡Ecosystem Fund

An ecosystem fund is a pool of resources, often financial, set aside to support the growth and development of a project's ecosystem. The video script notes that TON raised $340 million for its ecosystem fund, demonstrating a significant investment in the project's future and its ability to attract further development.

💡Programming Languages

Programming languages are the formal languages used to write software programs. The video script mentions that TON supports programming languages like Fift and Tact, which are not widely used, potentially causing compatibility issues and challenges in attracting developers to the platform.

💡Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. The video implies that TON's blockchain is designed to support more sophisticated smart contracts, which is important for the development of decentralized applications (dApps) and the overall utility of the platform.

💡IPO

An IPO, or Initial Public Offering, is when a private company goes public by offering its shares for sale to the general public. The video speculates that Telegram's potential IPO could provide a significant capital injection and increase the legitimacy of TON, attracting more users and investors.

💡Crypto Trading Bots

Crypto trading bots are automated software that execute trades on cryptocurrency exchanges based on predefined strategies. The video script briefly mentions the use of trading bots, such as those offered by 3Commas, to automate various trading strategies, including the use of signals from indicators or external sources like social media.

💡Three Commas

Three Commas is a platform that offers a variety of crypto trading bots, including DCA (Dollar-Cost Averaging), grid, and signal bots. The video script endorses Three Commas as a long-time channel partner and sponsor, highlighting their customizable bots and the convenience of their presets for less experienced traders.

💡Tether (USDT)

Tether (USDT) is a stablecoin pegged to the value of the US dollar, providing stability in the volatile cryptocurrency market. The video mentions the launch of USDT on TON's network, which facilitates convenient payments and the use of mini-apps for Telegram's users, contributing to TON's utility and adoption.

Highlights

Telegram's messaging app has its own cryptocurrency called TON Coin.

TON Coin had the second largest ICO in history, raising $1.7 billion before being shut down by the SEC.

Despite setbacks, TON Coin has survived and risen into the top 10 cryptocurrencies, surpassing Cardano.

TON Coin's tokenomics are strong, with 70% of 5 billion total tokens currently circulating and a successful vote to freeze inactive miner wallets.

TON's blockchain is known for high transactions per second and rapid block finality, recently setting a record over 100K transactions per second.

TON's unique architecture allows for flexibility, scalability, and the ability to handle mass adoption.

TON's roadmap is ambitious, with plans to develop various projects to extend capabilities and reach.

TON has a $340 million ecosystem fund to support its future development and goals.

TON's programming languages, such as FunC and Fift, are complex and not widely used, posing compatibility and developer attraction challenges.

As of October 2023, TON had only 28 full-time developers compared to Ethereum's 1,900, indicating a significant developer ecosystem gap.

TON's network has only 340 validators, which is a small number compared to other layer one networks.

A critical bug once dropped TON's transactions per second to one, highlighting scalability issues that need to be resolved.

TON's opportunities include leveraging Telegram's massive user base for potential adoption and integration with DApps.

Telegram's possible IPO could provide a capital injection and legitimacy, boosting TON's ecosystem and interest.

TON has a native wallet, TON Space, and the launch of USDT on its network, making crypto use convenient for Telegram's users.

TON faces threats from competitors like WeChat and potential legal issues due to its past with the SEC.

TON's future success may hinge on its ability to overcome these challenges and capitalize on its partnership with Telegram.

Transcripts

telegram is one of the most popular

messaging apps in the world and if

you're in crypto chances are that you

currently use it but did you know that

they have a token yep it's called ton

coin and it's been on a crazy roller

coaster ride since it's launch in 2019

it had the second largest Ico in history

raising an insane $1.7 billion before

the SEC came and shut it down now the

project could have just died then and

there but it's survived thanks to a

small and dedicated community and now

after years of hard work ton coin has

risen From the Ashes and has clawed its

way into the top 10 of all

cryptocurrencies managing to beat out

even cardano so now the question on my

mind is is ton worth the hype well to

find out the answer to that we have to

analyze four key aspects of the project

starting with its strengths now its

first strength that I really like is his

tokenomics out of around 5 billion total

tokens around 70% are currently

circulating which is a healthy amount in

my eyes also back in 2023 there was a

successful vote to freeze the wallets of

inactive miners that passed with over

91% of the votes in favor and that means

that roughly 1 billion tokens which is

around 20% of the total Supply will be

locked away for 4 years this is amazing

for token holders as it means that we

don't have to worry about any of that

flooding into the market anytime soon

and to make things even better only

1.45% of the tokens were allocated to

the team which is a super small amount

and it's way lower than what these layer

1 and layer 2 projects are doing these

days so clearly I like their tokenomics

but it's not only that there's also some

pretty great Tech behind this project

you see ton has its own blockchain which

is known for their super high

transactions per second and Rapid block

finality time it recently set a record

for transactions per second smashing

through the 100K Mark all thanks to its

unique architecture it's also super

flexible and scalable due to a special

feature they have called asynchronicity

now I could go into all the details here

but that probably bore you to death so

instead the takeaway here is that

they've designed their Network to be

able to handle Mass adoption and that's

key for any project that truly wants to

succeed in the Long Haul anyhow another

thing I really like about ton is that

they aren't just satisfied with where

they are now no they are laser focused

on improving for the future as well for

example their roadmap is quite ambitious

and involves a bunch of plans to develop

various projects that extend their

capabilities and reach for example

they're focused on improving the

Network's infrastructure so it can

support more and more sophisticated daps

and because this Tech is so flexible it

can also adapt to various business needs

making it a great potential partner for

any business that may they want to

incorporate blockchain Tech into their

products furthermore all of these

initiatives are backed by a whopp in

$340 million that ton raised a couple

years ago to form their ecosystem funds

and this just shows me that they are

committed to improving their future and

reaching their goals so there's some

really great strengths here no doubt

about that but now we got to look at the

other side of the coin and talk about

some of its weaknesses as well so the

first thing I don't like is how complex

it's programming languages are I won't

bore you with all the details here but

ton supports languages such as Funk fif

and tact and those are not widely used

at all by developers this presents two

issues in particular first there may be

compatibility issues with other popular

products and ecosystems out there and

second it could become a challenge for

them to attract developers because of

this as of October 2023 there were only

28 full-time developers in the ton

ecosystem and in comparison the ethereum

ecosystem has over 1,900 this is a major

issue as we all know that projects live

and die by their developers as those are

the ones who actually maintain the

network and drive Innovation so no doubt

this is a major weakness and I also

think that they're just making things

super complicated where they don't

really have to anyhow another weakness

that really bothers me is their

decentralization or lack thereof there

are only 340 validators in their Network

staking 270 Mill million ton in total

and when we look at other layer one

networks in comparison this is a tiny

amount salana has just about 2,000

validators and ethereum over 1 million

so ton lags way behind the competition

here and falls short of its aim to

become a truly decentralized Network

anyhow another weakness has to do with

the crazy transactions per second figure

I mentioned earlier because shortly

after that was announced to the crypto

World a critical problem with tons code

was discovered and it's TPS actually

fell all the way down to just one for

three whole days this was caused by some

Chinese miners doing inscriptions on the

network which flooded it with millions

of transactions and triggered the bug

but the fact that this even happened

shows that ton may not be ready for

prime time and has some issues to iron

out before it can truly be as scalable

as they claim to be anyhow that's how

things are with ton right now but what

if we expand this a bit and look at some

of the things that could affect their

future like for example the

opportunities that it could seize well

before we get to those I want to share

with you a few tips when it comes to

crypto trading Bots personally I like to

use them with a small portion of my

portfolio because I think they're a

great way to automate various strategies

that would be a pain to do manually but

wait there's so many trading Bots out

there so which one should you choose

well one of the most famous and OG ones

would have to be three commas who's also

been our longtime Channel partner and

sponsor sponsor if you take a quick look

at their site you'll see that they have

all sorts of bots from DCA to grid to

Signal Bots and they're some of the most

customizable ones that you can find but

if you find that stuff too complicated

well they also have a bunch of presets

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view so if you have some indicator that

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for example you can make a bot that buys

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before if you want to try it out then

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subscription all right back to tons

opportunities and honestly these can be

summed up with one word telegram

telegram is the fourth largest messaging

service in the world boasting over 900

million users who collectively generate

1 trillion views per month these are

some wild numbers if you think about it

and with ton as telegram's own token the

sky the limit when it comes to their

potential for adoption ton is already

used as the fuel that drives many of the

daps running on Telegram and I think

this could explode even further as there

are rumors right now that telegram is

lining up for an IPO if that were to

happen they would not only receive a

massive Capital injection but it would

also boost their legitimacy in the eyes

of potential users or investors so this

exponential growth in resources and

backing would bring an insane amount of

interest and development to their

platform and ton would be in the perfect

position to capitalize like there's no

doubt that if the money started flowing

to

then a lot of it would be directed

towards their ecosystem and daps which

would all have ton at their core

personally I feel like these DBS could

be a bit of a trojan horse for crypto

adoption because so many people would

use them without knowing the underlying

Tech right so they could onboard

millions of people to crypto in a way

that otherwise wouldn't be possible this

would be crazy for crypto in general but

it would be especially amazing for ton

if it finds itself at the tip of the

adoption funnel but here's the thing

when it comes to ramping up crypto

adoption on their platform ton and

telegram aren't stopping there ton has a

native wallet ton space on telegram

which is amazing for all the crypto

users already on the platform as it

allows them to seamlessly use crypto for

various reasons and then there's the

launch of usdt tether on tons Network

which makes sending payments and using

mini apps insanely convenient for all

900 million people on their platform

it's also great for developers who can

integrate those things into their

content Games Etc in a super easy manner

on top of the ton Network so far the

results have been quite impressive with

over 60 million usdt been issued on ton

since April 19th so the opportunities

are clearly there for ton but what about

the threats that could potentially

derail their future well first would

have to be its close ties to telegram so

yes this relationship will obviously

open many doors for ton but it also

leaves it a bit vulnerable as it will

become fully Reliant on telegram's

ability to grow like although telegram

is doing some great things it's not

alone in this space we chat Asia's

everything app also provides messaging

payments and mini apps but has a much

larger user base of over 1.3 billion

people Additionally the process to

develop apps on WeChat is more

straightforward than what ton requires

so ton definitely has to watch over its

shoulder maybe even from players such as

WhatsApp or line that may decide to

launch their own tokens at some point

down the line but anyhow another major

threat has to do with Ton's

controversial past although this project

has been kind of like a cockroach and

survived everything that's been thrown

at it the fact remains that it's run

into some pretty big legal trouble in

the past and that could come back to

haunt them as part of the settlement

with the SEC telegram agreed to inform

them if they ever planned on launching

another cryptocoin so to sidestep this

the rebranded ton coin was actually

launched by a separate entity called ton

Labs even though its sole function was

to be used on Telegram and this is some

shaky legal ground to be standing on

like if the SEC continues on its war

path against crypto then Telegram and

ton could easily find themselves in the

crosshairs of Gary Gensler once again

and if I were them this would be

something that would keep me up at night

anyhow there you have it a full SWAT

analysis of ton coin and now we can

answer our original question is ton

worth the hype well personally I think

yes it is like sure there's by no means

an easy path forward and there's a ton

of work to be done but we just can't

ignore how great of a position it's in

due to the close ties with telegram we

always talk about how to onboard the

next billion users to crypto well this

epic partnership between ton and

telegram just might be the way to do it

anyhow if you like this type of video be

sure to watch my other ones on warhold

Ando and djen and don't forget to check

out three commas using my link below