TON Market Cap Plunges by Billions After Fixing Inflated Supply Data

Toncoin (TON) is not among the top ten best cryptocurrencies on the planet, following an update in the Open Network to more precisely reflect the asset’s circulating supply via cost trackers.

Inside a Telegram message on Wednesday, the work informed users that data aggregators would track the coin’s market capital differently continuing to move forward. They’d exclude Toncoin held by Telegram, Outdoors Network Foundation, and also the TON Believers Fund, it mentioned.

Because the change went effective, Toncoin’s market capital dropped greater than $7 billion immediately, based on CoinGecko data. Meanwhile, the cryptocurrency Cardano (ADA) reclaimed its place because the tenth best cryptocurrency, presently worth $15.8 billion. TON, at this moment, is not far behind at approximately $15.6 billion.

The information as reported by CoinGecko could be associated with tontech.io, among other stats. In the message, Outdoors Network stated the update to TON’s circulating supply is made to align with “industry practice” and adopted an in-depth overview of the TON blockchain’s data.

At this moment, it had been unclear what entity manages tontech.io. However, the page does incorporate a link directing users to ton.org, in which the community accountable for TON is damaged lower in to the TON Foundation, TON Society, and many other subgroups.

After TON flipped ADA the 2009 week, people from the Cardano community asked how TON could retain its cost following its sizable stop by market cap. Chris O’Connor, co-founding father of the DAO Cardano Ghost Fund, then claimed on Twitter (also known as X) the Open Network have been “caught red handed [while] artificially pumping” its market capital.

Outdoors Network didn’t immediately react to a request comment from Decrypt.

As competing layer-1 environments, the strain between TON and ADA captures how projects value their portrayal by data aggregators, including CoinMarketCap. Among 14,500 coins tracked by CoinGecko, for instance, a high-ten place is extremely coveted.

The U.S. Registration introduced charges against Telegram in 2020 within the Telegram Open Network. The regulator accused the messaging application of violating securities laws and regulations by providing the network’s native token “Grams,” securing an $18.5 million civil penalty alongside $1.2 billion in funds came back to investors.

Outdoors Network today is made using technology created by Telegram, although the project was ultimately ongoing through the exterior community of developers after Telegram abandoned it in 2020.

However, Telegram has more freely accepted TON in the last several several weeks. Last September, the messaging platform stated it’d adopted TON since it’s “official Web3 infrastructure.” That very same month, the TON Foundation announced its registration like a Swiss non-profit organization. Recently, Telegram has began using TON to share funnel ad revenue with users.

In the last year, TON’s cost has skyrocketed greater than 240% to $6.49. And also the asset’s cost continues to be bolstered lately through the recognition of Notcoin (NOT), a Telegram-based game and cryptocurrency where users were rewarded for frequently tapping an electronic gold gold coin.

Edited by Andrew Hayward