- TON Ventures announced a new accelerator programme.
- The scheme will invest $2.5 million into five startups building on the TON blockchain.
- The launch comes after the arrest of Telegram’s CEO sent Toncoin down 22%.
TON Ventures picked an unusual time to launch its newest $2.5 million accelerator programme.
Designed to attract developers to build on the $12 billion TON blockchain, first developed by the messaging app Telegram, the cohort will last three months and consist of five startups.
The launch comes as the broader TON ecosystem is embroiled in turmoil.
The arrest of Telegram CEO Pavel Durov in France sent Toncoin’s price down over 22% from its August high, and TON’s total value locked has fallen 56% to $348 million since the start of August. On August 28, a French court charged Durov with allegedly failing to prevent criminals from using Telegram to commit crimes ranging from fraud to child sex abuse to narcotics sales.
Still, VCs told DL News that they’re not bailing on Toncoin, with CoinFund among backers who say the fundamental case for TON is still “compelling.”
Social media app Telegram originally developed the TON blockchain and its cryptocurrency Toncoin, but it spun out into a separate entity after a settlement with the US Securities and Exchange Commission in 2020.
The TON Foundation now oversees the development of the blockchain, the cryptocurrency, and associated projects. TON Ventures is a separate entity from TON Foundation and is not a subsidiary, but ex-TON Foundation executives run it, a spokesperson told DL News.
“TON Foundation is not involved in any venture activities,” the spokesperson said.
950 million users
The entities may now be distinct, but Telegram is becoming a key growth lever for the TON network.
“TON Blockchain’s growth so far this year has only shown a tiny percentage of Telegram’s potential as a distribution channel,” Sophia Rusconi, head of TON Accelerator, said in a statement. “Projects building on TON have an audience of 950 million ready and waiting to engage with their product.”
TON has enjoyed several milestones recently.
On Tuesday, it announced that it had reached over 1 billion transactions. TON accounts also passed the 50 million mark for the first time in August, according to Matthew Graham, founder and CEO of crypto venture firm Ryze Labs.
So-called tap-to-earn games are key to that growth. Those games reward users for tapping on their screens to earn coins and upgrade gameplay. One of the most popular games is called Hamster Combat, and counts more than 200 million users in June, according to the project.
“Tap-to-earn has been a breakthrough onboarding mechanism for users who were previously unaware of crypto,” Rusconi told DL News. “Our goal is to build out an ecosystem full of innovative products that keep users engaged for the long-term.”
The TON Foundation and TON Ventures did not comment on how big the tap-to-earn segment is on the TON blockchain nor what the arrest of Durov means for TON’s future.
Update: This article has been updated to include Rusconi’s exclusive comment to DL News and to add extra clarification on the relationship between TON, TON Foundation, TON Ventures, and Telegram.
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
