Why Is Toncoin (TON) Rising? Pantera Capital ($4.7B AUM) Discloses Investment

The price of Toncoin (TON) has risen by over 11% in the past 24 hours. While the increase has largely been due to improved market conditions, the cryptocurrency is also rising due to strong backing from one of the industry’s leading venture capital firms.

Pantera Capital Discloses Toncoin Investment

On Thursday, Pantera Capital revealed that it has invested an undisclosed amount in Toncoin (TON). Alongside the investment, the highly respected VC firm published an extensive piece outlining its thesis for investing in the Ton ecosystem. For the records, Pantera Capital has over $4.7 billion in assets under management and is notable for launching a cryptocurrency fund way back in 2013 when Bitcoin traded at around $65 per coin.

In its Toncoin investment thesis, Pantera Capital argued that Toncoin’s affiliation with the widely adopted Telegram messaging app puts it in fine stead to perform strongly in the coming years. Recall that, as narrated in our beginner’s guide on Toncoin, the cryptocurrency network was originally launched by Telegram.

However, Toncoin faced regulatory hurdles, which forced Telegram to quit the project. Nonetheless, an open-source community of developers helped nurture the TON Network and has transformed its native Toncoin into one of the top ten cryptocurrencies by market capitalization.

Pantera Capital cites the TON network’s open-source nature and the clearance of all regulatory hurdles as one of the reasons why it expects the Toncoin ecosystem to thrive. Additionally, having access to over 900 million users, an easier onboarding experience, and a highly performant blockchain that rivals the types of Solana gives Toncoin an edge over competing layer-1 networks.

Toncoin Jumps 11%

Following news of Pantera Capital’s investment in Toncoin, the cryptocurrency has risen by more than 11% in the past 24 hours. The cryptocurrency started the day trading around $4.7 but has climbed above $5.3 at the time of writing.

Toncoin’s market cap currently stands at $18.4 billion, representing a $4 billion gap between it and its closest rival, Cardano, which has dropped to the 10th position in the global crypto market rankings.