Toncoin Becomes Telegram’s Only Accepted Crypto for App Services

Nearly everyone who was active in the crypto market at the time remembers Telegram’s failed ICO. If not for the SEC—which issued a temporary restraining order against Telegram and its TON issuer subsidiary in October 2019 to halt the crowdfunding—the token sale could have been a massive success, having already raised $1.7 billion.

Telegram’s ambitions ultimately collapsed when the company agreed to return $1.2 billion to ICO investors and pay $18.5 million in civil penalties to the SEC in June 2020. From these ashes rose The Open Network (TON), which launched in May 2021 as an open-source, community-driven blockchain network without Telegram’s involvement. Since then, TON has established itself as a significant player among Layer 1 blockchains.

Now, the TON Foundation and Telegram have struck a new partnership to introduce exclusive support for Toncoin and the TON blockchain for the instant messaging app’s services and applications.

TON Strengthens Ties With Telegram Amid Toncoin Decline

Under this new partnership, Telegram will now exclusively support the TON network for its messenger services, including Mini Apps, which have gained popularity among crypto users and contributed to TON’s TVL peak of around $770 million in July 2024. Alongside discontinuing support for other blockchains, Telegram will only accept Toncoin for platform assets, services, and payments to Mini App developers and channel owners. Additionally, TON Connect has been designated as the sole protocol for linking Mini Apps to digital asset wallets.

Telegram and the TON Foundation have been working closely in recent years, with Telegram frequently endorsing The Open Network as its preferred blockchain for Web3 infrastructure. This exclusivity agreement takes their collaboration to the next level.

The timing is critical for TON. Since reaching its all-time high DeFi TVL last July, the open-source blockchain’s total value locked has plummeted. According to DefiLlama, TON now ranks as the 34th largest blockchain in decentralized finance, with its TVL falling over 73% in the last seven months. Toncoin’s price performance reflects this downturn. Since July 3, 2024, it has lost nearly 53.1% of its value, according to Binance data. Trading at $3.47 as of February 27, 2025, TON has significantly underperformed its competitors, with ETH (-21.4%), SOL (+19.41%), AVAX (-9.92%), and BNB (+15.7%) all faring better over the same period.

A Controversial, Yet Necessary Move?

TON and Telegram’s exclusivity agreement has sparked controversy within the crypto space. Critics argue that The Open Network’s stability, liquidity, and performance limitations could hinder blockchain development and adoption.

Mirai Labs co-founder Garrison Yang raised concerns, stating, “TON is well behind Solana and Base in performance, and Telegram is well-positioned to collect a toll for any blockchain interaction that is not built on the TON chain. Instead, they are taking the scorched earth approach to force developers to use their infrastructure, which never ends well.”

Others have pointed to centralized exchanges’ “limited excitement” for TON projects, arguing that Telegram’s move contradicts Web3 principles and even The Open Network’s own messaging, which presents it as a “decentralized and open internet.” According to an X post by Ice Open Network, this effectively makes TON “The Closed Network,” mirroring the tactics of centralized big tech platforms, where users are locked into ecosystems without alternatives. “The difference is that big tech doesn’t claim to be decentralized,” the post adds.

The TON Foundation has responded by emphasizing the distinction between Telegram’s centralized platform architecture and TON’s open, decentralized blockchain. Refuting claims that the exclusivity agreement would stifle development on other chains, the organization stressed that the L1 blockchain remains open to all projects and developers. It argued that Telegram’s TON-only approach fosters interoperability and unifies the user experience within the instant messaging app.

TVM Ventures founder and TON Foundation board member Steve Yun took this argument further, stating that the exclusivity agreement was “not a limitation but rather a necessity.” According to Yun, TON’s design—particularly its focus on sharding—makes it a strong candidate for mass adoption. He believes the decision was the right move, calling it an “absolute bullish sign” for TON.

But will this exclusivity agreement serve as a catalyst for a Toncoin bull run in the coming months, or will the coin’s price continue to decline amid the controversy?