Coinbase Ventures Backs Toncoin, Boosting The Open Network’s Global Expansion

The TON Foundation has announced that Coinbase Ventures has invested in Toncoin (TON), marking another high-profile endorsement for The Open Network’s growing ecosystem. The news, shared on Monday, August 11, was described by the foundation as a “major vote of confidence” for its vision of expanding blockchain adoption through integration with the popular Telegram messenger.

Coinbase joins an elite group of investors in Toncoin, including Sequoia Capital, Ribbit Capital, Benchmark, Paradigm, and Kingsway. Earlier this year, in March, TON Foundation secured $400 million from these and other venture capital firms, with investors purchasing Toncoin directly rather than acquiring equity in the organization. The approach reflects a bet on TON’s long-term utility as the native token powering the network’s suite of blockchain-enabled services.

In July, Bloomberg reported that the foundation is working on establishing a crypto treasury company to manage Toncoin holdings, targeting at least $400 million in assets.

Ton Foundation Seeking to Join Crypto Treasury Company Trend With Toncoin Pitch

TON Foundation and Kingsway Capital Partners are seeking to raise at least $400 million for a so-called crypto treasury company that would hold Toncoin, a token often associated with the Telegram messaging app, according to people familiar with the matter.

BloombergRyan Weeks

Telegram Connection Remains Key Driver

TON’s development is closely linked to Telegram, which boasts more than 1 billion monthly active users, according to Statista. The network’s strategy is to leverage Telegram’s vast user base to bring blockchain tools into everyday communication.

Topic: Telegram

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Toncoin serves as the utility token for Telegram’s mini-apps, enabling in-chat blockchain functionality. This model has already produced viral successes such as Notcoin, a clicker game that once attracted over 650,000 users.

The popularity of such mini-apps helped push TON’s decentralized finance (DeFi) total value locked (TVL) to a record high of nearly $800 million in January 2024. However, that figure has since retreated to $152.48 million as the initial hype around clicker-style apps cooled.

A Strategic Step Forward

While market interest in certain applications may have dipped, the Coinbase Ventures investment underscores continued institutional belief in TON’s potential. By combining major VC backing with its integration into one of the world’s most-used messaging platforms, the TON Foundation is positioning Toncoin as a key player in the push to bring blockchain to mainstream audiences.