Several venture capital firms, including Sequoia Capital, Ribbit, Benchmark, Kingsway, Vy Capital, Draper Associates, Libertus Capital, CoinFund, Hypersphere, SkyBridge and Karatage, have invested over $400 million in Toncoin, the native cryptocurrency of the TON blockchain. The Open Network Foundation (TON Foundation) confirmed the investment, clarifying that this was not a fundraising round but rather a direct purchase of Toncoin.
TON blockchain, which supports mini apps within Telegram, has grown rapidly. Native accounts on the network increased from 4 million to 41 million in the past year, and Toncoin is the only cryptocurrency accepted for Telegram app services. Telegram itself reached 1 billion monthly active users by March, doubling in less than three years. Benchmark partner Peter Fenton projected that this number could reach 1.5 billion by 2030. The TON Foundation aims to integrate 30% of Telegram’s users into the blockchain within three years.
Investor interest in Toncoin has been growing for some time. Pantera Capital previously made two investments in Toncoin, one of which was described as its largest-ever investment. Animoca Brands co-founder Yat Siu said his company started buying Toncoin when it was trading below $1. The cryptocurrency surged above $8 in mid-2024 before dropping by over 50%, currently trading at around $3.75.
The latest investment announcement caused Toncoin’s price to jump 8% before stabilizing. The blockchain’s growth has been fueled by Telegram mini apps, including popular games like “Notcoin” and “Hamster Kombat,” which have driven user engagement.
TON was originally developed by Telegram but now operates independently after Telegram settled a lawsuit with the U.S. Securities and Exchange Commission (SEC) in 2020. Telegram CEO Pavel Durov’s arrest in France last year over concerns regarding content moderation affected the token’s price. Durov recently regained access to his passport, which led to a 20% rise in Toncoin’s value.
Venture capital investment in blockchain projects has been rising. February saw over $1.1 billion in crypto VC deals, with much of the funding directed at decentralized finance and blockchain-based financial services. Simon Wu, a partner at venture firm Cathay Innovation, said blockchain projects are becoming more recognized as legitimate solutions in asset management, transactions, and tokenization.
Sequoia Capital partner Shaun Maguire praised the TON team for its expertise in consumer products and crypto infrastructure, emphasizing that Telegram’s vast user base gives the blockchain a strong foundation for growth.
