TON market capitalization plunges billions after correction of inflated supply data

Toncoin (TON) is no longer one of the top 10 most valuable cryptocurrencies in the world, following an update from The Open Network to more accurately reflect the asset’s circulating supply via its price tracker.

From a telegram message On Wednesday, the project informed users that data collectors would track the coin’s market capitalization differently. It was revealed that Toncoin held by Telegram, Open Network Foundation, and TON Believers Fund will be excluded.

When the change went into effect, Toncoin’s market capitalization immediately fell by more than $7 billion. CoinGecko data. Meanwhile, cryptocurrency Cardano (ADA) has reclaimed its spot as the 10th most valuable cryptocurrency, currently valued at $15.8 billion. As of this writing, TON is worth about $15.6 billion, which is not far off.

Data reported by CoinGecko may be associated with: tontech.io, among other statistics. In a message, The Open Network stated that updates to TON’s circulating supply were made in line with “industry practices” and followed an in-depth review of TON blockchain data.

At the time of this writing, it is not clear which entity controls it. tontech.io. However, the page contains links that direct users to: ton.orgThe community responsible for TON is divided into several subgroups: TON Foundation, TON Association, and others.

after a ton turned over Earlier this week at ADA, members of the Cardano community questioned how TON was able to maintain its price following a significant drop in its market capitalization. Chris O’Connor, co-founder of the DAO Cardano Ghost Fund, said at the time: assert Twitter (aka X) said The Open Network was “caught artificially pumping” market capitalization.

Open Network did not immediately respond to a request for comment. decryption.

The tension between TON and ADA as competing layer 1 ecosystems captures how the projects evaluate their portrayal by data aggregators, including CoinMarketCap. For example, among the 14,500 coins that CoinGecko tracks, a top 10 spot is highly coveted.

The U.S. Securities and Exchange Commission indicted Telegram in 2020 over the Telegram Open Network. Regulators accused the messaging app of violating securities laws by offering “Grams,” the network’s native token. secure There was a civil penalty of $18.5 million and $1.2 billion in funds returned to investors.

Today, the Open Network is built using technology designed by Telegram, but the project was ultimately continued by a community of external developers after Telegram abandoned it in 2020.

However, Telegram has embraced TON more openly over the past few months. Last September, the messaging platform said it had adopted TON as its “official Web3 infrastructure.” In the same month, TON Foundation presentation Registered as a Swiss non-profit organization. Recently, Telegram started using TON to share channel advertising revenue with users.

Over the past year, the price of TON has surged more than 240% to $6.49. And its recent popularity has led to a rise in asset prices. Notcoin (NOT) is a Telegram-based game and cryptocurrency where users are rewarded for repeatedly tapping digital gold coins.

Editor: Andrew Hayward