- Toncoin‘S market capitalization saw 7 billion dollars get off In ~ evaluation May 29th.
- that much problem originate from
- part observer claimed Toncoin team was involved in investor manipulation.
Toncoin has risen sharply in market capitalization rankings in recent weeks. The project surpassed Cardano in April to rank 9th, and last month it briefly surpassed Dogecoin to rank 8th. This comes after Toncoin rolled out new ID verification palm scanning technology and associated token giveaway incentives to drive user sign-ups.
The momentum has been building as Toncoin partnered with HashKey Group for fiat on/off ramping and made great strides in enabling Tether to bring its USDT stablecoin to the TON blockchain. However, on May 29, Toncoin’s market capitalization value plummeted by $7 billion, sparking concerns about the future of the project.
Mysterious decline in the value of Toncoin
The cryptocurrency community expressed concern Wednesday about Toncoin’s sudden and massive market capitalization revaluation. Commenting on the inexplicable decline, YouTuber ‘P₳ul’ said that it was strange that Toncoin’s value had plummeted so much but the price had not changed.
Market capitalization is calculated by multiplying a project’s circulating token supply by its current price. In other words, market capitalization fluctuates with price movements. However, critics argue that market capitalization is an arbitrary and misleading measure that does not accurately reflect a project’s actual value or market positioning.
Cryptocurrency influencer Ton Expert was equally perplexed by Toncoin’s $7 billion valuation plunge, wondering what could have caused such a huge revaluation when there had been no significant movement in the token’s price. The apparent disconnect raised suspicions of potential market manipulation.
allegations of market manipulation
Amid rumors of market manipulation, Toncoin released a statement on its Telegram channel late Wednesday night. The post states that CoinMarketCap, CoinGecko, and TonTech data aggregators have re-evaluated Toncoin’s market capitalization “in line with industry practices suggested by CoinGecko.”
The message said that an in-depth review of the TON blockchain revealed that locked or reserved tokens were included in the project’s circulating supply, thereby inflating its market capitalization. Locked tokens and reserved tokens have now been removed.
Toncoin previously reported a circulating supply of 3.41 billion, but that number has been revised to 2.41 billion.
Chris O, co-founder of ADA Ghost Fund, framed the situation as saying that Toncoin was intentionally deceiving investors by exaggerating its circulating supply. He questioned how many retail investors have been “duped” into believing Toncoin is worth more than it actually is.
The Cardano DApp analyst echoed Chris O’s comments that Toncoin manipulated investors by artificially inflating its market capitalization metrics “to gain more attention and inflows.”
On the flip side
- expansion market capitalization indicator damage trust and transparency In ~ cryptocurrency market.
- raised due to this incident question About regulations watch and responsibility measurement.
- Toncoin have No maximum token supplymeaning team “I can print it. infinity” in theory.
Why This Matters
These tricks, the Toncoin team claims, attack the core integrity of the cryptocurrency market. These incidents strengthen the stance of critics against cryptocurrencies by amplifying calls for greater regulatory oversight.
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