The venture divisions of virtual currency trading platforms Huobi and Kucoin are reportedly among the backers of a $250 million ecosystem fund to support initiatives launched on Toncoin, which is the re-launch of failed blockchain/DLT initiatve, TON.
In addition to Huobi Incubator and Kucoin Ventures, MEXC Pioneer Fund, 3Commas Capital, Orbs, TON Miners and Kilo Fund have provided a total of $250 million in order to back the new fund.
The fund will aim to support blockchain/DLT developers building on the Telegram Open Network (TON) blockchain via incubation efforts, strategic investments and grants, the TON Foundation confirmed on April 11, 2022.
TON is described as a layer 1 proof-of-stake (PoS) blockchain that’s compatible with messaging service provider, Telegram. But unlike its previous version, Toncoin claims to be independent from the Telegram business entity (and platform), even though Chief Executive Pavel Durov gave the initiative his endorsement at the end of 2021.
The plan or objective is for Toncoin to be integrated into Telegram, which would then make it available to the leading messaging app’s 500M monthly users.
As covered, Telegram had shut TON down back in August 2020 after a lawsuit from the US Securities and Exchange Commission (SEC). The suit had alleged that the project had been carrying out an unregistered securities sale back in 2018 that had netted $1.7 billion.
But members of the TON community had continued to further develop the blockchain, and then rebranded the initiative to Toncoin.
The Ton Foundation has now introduced its first ecosystem fund in order to support initiatves interested in building dApps on it.