Toncoin (TON) is the native coin of The Open Network, a layer 1 blockchain known for its ability to rapidly scale and process transactions. Originally developed by the Telegram messaging app team, TON is now maintained by the TON Foundation.
Supporting an open network ecosystem, Toncoin is used to pay transaction fees, staking to secure the network, and participate in network governance. Within the network, it facilitates a wide range of decentralized applications (DApps) and services, including decentralized finance (DeFi), non-fungible tokens (NFTs), and more. With a strong community and extensive roadmap, TON is working to establish itself as a promising player in the evolving blockchain landscape.
This article explains what TON is, its use cases and how to buy Toncoin (TON) through centralized exchanges (CEX), decentralized exchanges (DEX), and Telegram bots.
Origin of TON and components of an open network
In 2018, the Durov brothers Nickolai and Pavel envisioned a scalable blockchain to support Telegram’s large user base and launched the Telegram Open Network (TON). However, regulatory issues from the U.S. Securities and Exchange Commission (SEC), which deemed Toncoin a security, led Telegram to abandon the project in 2020. The TON community took over development of the project and rebranded it under the name The Open Network. Native token, Toncoin.
Despite early setbacks, TON grew, driven by its community and the potential of the underlying technology. This has evolved into a comprehensive project that includes TON Payments, TON DNS, TON Storage, TON Proxy and TON Space.
Toncoin use cases
Toncoin offers a variety of features within the Open Network ecosystem, as described below.
payment method
Peer-to-peer (P2P) transactions using TON enable fast and secure payments between users without the intervention of intermediaries.
transaction execution
To process a transaction on the TON chain, users must pay a transaction fee, which is used to reward validators for verifying transactions.
staking
Users can participate in network security by staking TON tokens. The project rewards stakers with TON tokens for their contributions.
Smart Contract Enhancement
The open network utilizes the native cryptocurrency, TON, as a utility token to facilitate a variety of functions within the network, including supporting the operation of DApps built on the TON blockchain. These often utilize smart contracts for their core functionality.
rule
TON token holders can participate in the governance of the Open Network by voting on proposals that influence the development and future direction of the platform.
incentive
Developers and users can earn Toncoins by participating in various TON ecosystem activities, including project contributions, content creation, and rendering services.
How to buy TON
Below is an overview of how to buy TON through various mediums in simple steps.
Use a centralized exchange
The process of purchasing TON through CEX is simple. As of June 2024, TON is not supported by other major exchanges such as Coinbase, Binance, and Kraken. Here’s a step-by-step guide on how to buy Toncoin using Gate.io’s example:
Step 1: Choose a cryptocurrency exchange
The first step when buying TON is to choose a reputable centralized exchange that supports Toncoin. Users must consider features such as security measures, user experience, fees, and compliance.
Step 2: Create an account
The next step is to create an account at the exchange of your choice. Users typically sign up by providing their email address as their user ID and creating a password. Centralized exchanges require identity verification to comply with Know Your Customer (KYC) regulations.
Step 3: Deposit funds
Users can deposit funds into their exchange wallet once their account is set up and verified. You can link your bank account or use a credit or debit card to deposit fiat currency such as US dollars or Euros. Alternatively, you can deposit other cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) and exchange them for TON.
Step 4: Buy TON
You can purchase TON through the “Buy Cryptocurrency” tab on Gate.io. This exchange allows users to purchase cryptocurrency via debit card, credit card, or Gate.io cryptocurrency debit card. In the “Purchase” tab, users must enter the amount they wish to spend on cryptocurrency and complete the purchase.
Withdraw to a secure wallet
Users can withdraw TON from exchanges to secure wallets to protect their digital assets. Select a software wallet such as a cryptocurrency cold wallet or Trust Wallet that supports TON, then withdraw TON from the exchange and transfer it to your personal wallet.
Use of decentralized exchanges
DEX gives users complete control over their assets. If users want to purchase TON using a DEX, they can choose Toncoin’s own DEX, such as STON.fi. Alternatively, you can choose a popular DEX that supports TON and buy it with fiat or exchange it for other cryptocurrencies.
To purchase TON on DEX, users can follow the steps below: This process assumes that the buyer has already set up a compatible wallet, such as MetaMask, and funded it with a cryptocurrency that can be used to trade TON (usually BNB or another token on the BNB smart chain).
Step 1: Connect your wallet to PancakeSwap
- Go to the PancakeSwap official website.
- Click the “Connect” button, usually in the top right corner of the homepage.
- Select your wallet provider (e.g. Trust Wallet) from the list and follow the prompts to connect. Users may need to authorize the connection in their wallet app.
Step 2: Add TON to your wallet
- If TON is not already visible, users will need to manually add TON to their wallet.
- The option to add custom tokens is in the Tokens section.
Step 3: Exchange to TON
- Go to “Trades” in the sidebar and select “Exchange” or “Swap.”
- Select the input currency and select TON as the output currency.
- Enter the amount, set the slippage allowance and confirm the swap.
- Approve the transaction and wait for confirmation.
Step 4: Receive TON tokens
- Once the user confirms the transaction, TON tokens will appear in their wallet.
How to Buy TON Using Different Trading Methods
Users can purchase TON using a variety of trading methods, including spot trading, peer-to-peer (P2P) trading, and token swaps on platforms such as Gate.io.
spot trading
If you purchase TON through spot trading, you must select a trading pair that contains TON. As of June 2024, Gate.io offers TON/USDT, TON/ETH, and TON/TRY. Users can choose either a market order, which will be executed immediately and buy TON at the current market price, or a limit order, which will allow them to set a specific price at which they want to purchase TON. Limit orders are executed only after the specified price is reached. Once the purchase is complete, TON will arrive in the buyer’s exchange wallet.
P2P trading
P2P trading on a cryptocurrency exchange requires buyers and sellers to register with the exchange and complete KYC verification. The sender posts the cryptocurrency for sale along with the asking price and the payment methods they accept. The exchange holds your cryptocurrency in an escrow account until payment is confirmed. If the buyer agrees to the offer, he or she pays the seller. Once payment is confirmed, the cryptocurrency is released to the buyer and the transaction is completed.
swapping
A swap on a cryptocurrency exchange means directly exchanging one coin for another. Users first select the two cryptocurrencies they wish to exchange. Then indicate the amount of cryptocurrency you wish to exchange. The platform determines the conversion rate and associated costs. Once the user confirms the transaction, the exchange processes the swap by changing the specified amount of the original cryptocurrency to the desired coin. TON will then be added to the buyer’s wallet.
Using Telegram and Bots
The process of purchasing TON using your Telegram wallet is simple, as the “@wallet” bot is integrated within the Telegram app. Below is a step-by-step guide on how to buy TON using this feature.
Step 1: Set up your wallet
Telegram’s wallet is a third-party mini-app that allows users to purchase cryptocurrencies such as Tether (USDT) and TON. To install the wallet, open the Telegram app and search for the @wallet bot, which facilitates buying, selling and transferring cryptocurrencies within Telegram.
Start chatting with the @wallet bot and follow the instructions to set it up. This may include agreeing to our Terms of Service and setting up security features.
Step 2: Add funds
To purchase TON, users must have funds in their Telegram wallet. The @wallet bot supports adding funds through a variety of payment methods, including credit cards, debit cards, and cryptocurrency transfers. Follow the instructions provided by the @wallet bot to add funds.
Step 3: Buy TON
Once the wallet is funded, users can purchase TON. Type “Buy Toncoin” in the @wallet chat or use the menu option to go to the Buy section. Users must enter the amount of TON they wish to purchase. The bot displays the user the current exchange rate and the total cost for the transaction.
Follow the bot’s instructions to confirm your purchase. This usually involves verifying the transaction amount and payment method.
Step 4: Confirm and save your TON
Once the transaction is confirmed, TON will be credited to your Telegram wallet. Users can view their balance and transaction history within the @wallet chat.
Users can increase the security of their Telegram wallet by enabling additional security features provided by the @wallet bot, such as two-factor authentication.
Is TON a good investment?
Deciding whether TON is a good investment requires evaluating several factors, including the powerful technology underlying TON, its potential for high transaction throughput, and Telegram’s active user community. The emphasis on decentralization and anonymity also suits the preferences of most cryptocurrency users.
When it comes to risk, investors face challenges common to the cryptocurrency sector, such as market volatility and regulatory issues. Moreover, the project is in a relatively early stage. TON’s continued development is critical to its success.
Considering the regulatory issues Toncoin faces with the SEC, Toncoin is important because of its association with Gram, Telegram’s failed cryptocurrency project. These issues could potentially impact stakeholders who invest in and trust the coin.
Before making an investment decision in TON, investors should conduct thorough research, considering both the technical feasibility and the associated risks.