TON Sinks 7.6% Despite Verb’s $558M Bid to Build First Public Toncoin Treasury Firm – Crypto News – Crypto News
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TON Sinks 7.6% Despite Verb’s $558M Bid to Build First Public Toncoin Treasury Firm TON Sinks 7.6% Despite Verb’s $558M Bid to Build First Public Toncoin Treasury Firm

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TON Sinks 7.6% Despite Verb’s $558M Bid to Build First Public Toncoin Treasury Firm – Crypto News

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6 months ago

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Verb’s $558 million plan to build a Toncoin treasury reserve sparked a stock rally, but the token dropped.

Nasdaq-listed livestream social commerce platform Verb Technology recently announced plans to create a publicly traded treasury reserve for Toncoin (TON), but crypto investors appear to be unimpressed.

Despite Verb’s announcement of a $558 million PIPE deal on Aug. 4, the token plunged in the hours following the news. As of press time, TON has dropped 7.6% in the past 24 hours to trade around $3.30, making it the biggest loser among the Top 100 cryptocurrencies, according to CoinGecko.

TON Market Cap

In the announcement, Verb — which plans to rebrand as TON Strategy Co, or just TSC — said it aims to become “one of the largest holders” of TON by using most of the PIPE proceeds to acquire the token, betting on its future as the exclusive blockchain powering Telegram’s vast ecosystem.

The deal is backed by heavyweight crypto investors, including Kingsway Capital, an institutional firm closely involved with the TON Foundation, along with Blockchain.com, Ribbit Capital, and others, and is expected to close around Aug. 7, according to the press release.

TON Price Impact Uncertain

Following the news, Verb’s shares surged roughly 114%, reaching levels last seen in July 2024, per data from Yahoo Finance.

Verb Share Price chart
Verb Share Price

But the crypto market reaction has been somewhat cold. Analysts and traders alike seem to remain cautious, reflecting a pattern of recent setbacks and unfulfilled promises surrounding TON that have sapped investor confidence.

TON’s journey has had its ups and downs, despite its close ties with Telegram. Earlier this year, TON was named Telegram’s main blockchain partner, supporting features such as mini apps, tokenized usernames, payments, and ads. The TON ecosystem also launched TON Wallet inside Telegram for U.S. users, marking a significant milestone for the network.

That said, the planned $558 million token purchase hasn’t started yet, so it’s unclear how the influx of liquidity will impact TON’s price. Animoca Brands previously pointed out that many companies only hint at treasury token buys without actually making large purchases, meaning the recent stock rallies may reflect investor speculation about intentions rather than real market activity.

Bumpy Road

So far, these efforts haven’t helped keep TON’s price steady. It remains unclear if TON Wallet’s push in the U.S. had much of an impact. The Defiant reached out to TOP, the team behind TON Wallet, but received no response despite several attempts.

In early July, TON’s price jumped 10% after Toncoin said in a now-deleted blog post that TON holders could apply for a ten-year U.A.E. Golden Visa by staking $100,000 worth of TON for three years and paying a one-time $35,000 fee.

Later, it became clear that the program wasn’t officially approved by the government, and regulatory issues halted the visa plan.

Now, the TON community appears to be jumping on the hype train surrounding public treasury companies. Manuel Stotz, incoming executive chairman of Verb, said TON “not only has the potential to compound in value, but also offers staking yield, meaning TSC can benefit from staking rewards.”

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