Exploring The Open Network: Past Success, Present Challenges, and Future Potential
In a recent Cointelegraph video, we examine the journey of The Open Network (TON), its meteoric rise, recent setbacks, and the opportunities ahead.
The Rise of TON
Once considered the fastest-growing blockchain of 2024, TON reached a remarkable milestone of 100 million wallets, driven largely by its integration with the Telegram messaging app. This growth was fueled by the distribution of TON tokens through Telegram’s Mini Apps and games, creating an ecosystem that made blockchain technology easily accessible.
Yat Siu, chairman of Animoca Brands, credited Telegram’s ecosystem for this rapid expansion: “We were unable to find the right distribution outlets until Telegram opened up its platform.”
Challenges and Decline
Despite its initial success, TON has seen a significant drop in activity. Prices of TON-based tokens have plummeted as many early users, drawn by airdrops from games like Hamster Kombat and Notcoin, quickly cashed out their free tokens.
Cointelegraph market analyst Marcel Pechman commented, “If you give stuff for free, nobody will value it,” emphasizing the downside of airdrop-driven user acquisition.
Additionally, the overinflated valuation of TON during its peak summer performance raised concerns. Ryan Connor, head of research at Blockworks, noted that TON’s $40 billion valuation exceeded that of major entities like Nasdaq and Coinbase, making it unsustainable. As market enthusiasm cooled, early investors and users selling their tokens further pressured the price.
Future Opportunities
Despite current struggles, analysts believe TON holds immense potential. The integration of millions of users via the TON wallet provides a ready-made audience for future applications within Telegram’s ecosystem.
“They’ve already been educated on crypto,” said Pantera Capital partner Ryan Barney. “What applications can we build for them? Advertising, social commerce, and payments are just a few possibilities.”
TON’s extensive user base and direct wallet integration position it for future growth, enabling innovative use cases for Telegram’s audience.
To explore TON’s potential beyond its initial hype, watch the full video on Cointelegraph’s YouTube channel and subscribe for more insights.
https://www.youtube.com/watch?time_continue=1&v=6roMcFk1aAQ&embeds_referring_euri=https%3A%2F%2Fcointelegraph.com%2F&source_ve_path=MjM4NTE
