Following an update from The Open Network aimed at providing a more accurate representation of the asset’s circulating supply, Toncoin (TON) has lost its status as one of the top 10 most valuable cryptocurrencies globally, according to price trackers.
In a Telegram message disseminated on Wednesday, the project notified users that data aggregators would adopt a different approach to track the coin’s market capitalization going forward. Specifically, they would exclude Toncoin held by Telegram, The Open Network Foundation, and the TON Believers Fund.
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Source: The Open Network on Telegram
Following the implementation of this change, Toncoin's market capitalization dropped by over $7 billion instantly, as reported by CoinGecko. The data presented by CoinGecko can be traced back to sources such as tontech.io, among other statistics.
TON Update Sparks Controversy Over Market Cap Claims
In its message, The Open Network explained that the update to TON’s circulating supply was made to align with "industry practice" and came after a thorough review of the TON blockchain’s data. As of now, the management entity of tontech.io remains unclear. However, the site includes a link to ton.org, which details the community responsible for TON, including the TON Foundation, TON Society, and several other subgroups.
Following the change, TON flippedclaimed on X, alleging that The Open Network had been "caught red-handed" engaging in artificial market capitalization pumping. It's worth noting that the U.S. Securities and Exchange Commission (SEC) previously brought charges against Telegram in 2020 regarding the Telegram Open Network.
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The regulator accused the messaging app of violating securities laws by offering the network’s native token "Grams," resulting in an $18.5 million civil penalty and the return of $1.2 billion in funds to investors.
TON Gains Momentum with Telegram's Support
The Open Network currently utilizes technology originally developed by Telegram, although the project was later continued by an external community of developers after Telegram discontinued its involvement in 2020. However, Telegram has exhibited a more pronounced embrace of TON in recent months.
Last September, the messaging platform declared that it had adopted TON as its "official Web3 infrastructure." During the same period, the TON Foundation announced its registration as a Swiss non-profit organization. More recently, Telegram has begun utilizing TON to distribute channel ad revenue to users.
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Over the past year, TON's price has surged by over 240% to reach $6.49. The asset's price surge has been further fueled by the growing popularity of Notcoin (NOT), a Telegram-based game and cryptocurrency where users are rewarded for repeatedly tapping a digital gold coin.
See more: Cryptocurrency Prices and Market Cap
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