Telegram’s Takeover of TON Sends Toncoin Up 35%
Telegram announced that it will replace the TON Foundation as the main operator of the network, which led to a 35% surge in Toncoin to a four-month high of $1.90.
Summary:
- TON rose to $1.90.
- Telegram replaces the TON Foundation as operator.
- Telegram becomes the largest validator with 2.2 million TON.
- Fees drop sixfold to 0.00039 TON.
- Blocks every 400 milliseconds.
- $459,000 in short liquidations.
- Open interest (OI) increased from $50M to $200M.
The announcement that changed the structure
Pavel Durov, the founder of the app, announced that Telegram is replacing the Switzerland-based TON Foundation as the main operator of The Open Network, while simultaneously becoming the largest validator in the network with approximately 2.2 million TON tokens staked.
Fees in TON have dropped 6× — to nearly zero.
Next step — Telegram replaces the TON Foundation as the driving force behind TON and becomes its largest validator.
The focus shifts to tech superiority.
New https://t.co/Me0w683UiK, new dev tools, new performance upgrades.…
— Pavel Durov (@durov) May 4, 2026
This is not just a governance change. Until now, Telegram acted as a distribution partner for a blockchain managed by a separate foundation. Now, Telegram is becoming the operator of the network itself. The distance between one of the most user-accessible blockchain platforms and the infrastructure that powers it effectively disappears.
The move can be seen as a return to the original vision from 2018, when Telegram raised $1.7 billion to create a blockchain directly integrated into the app. The agreement with the U.S. Securities and Exchange Commission (SEC) in 2020 forced the company to withdraw, which led to the creation of the independent TON Foundation. Now that gap is closing—not through a new project, but as a continuation of previously started but interrupted development.
Fees drop sixfold
The changes are not only organizational but also technical, and some of them have already been implemented.
Transaction fees have been reduced six times – to about 0.00039 TON per transaction, or approximately $0.0005 at current prices. The difference is substantial: half a cent makes micropayments natural for everyday use, whereas the previous roughly three cents created a real barrier.
Block creation time has been reduced to 400 milliseconds following the Catchain 2.0 update on April 9. At this speed, the blockchain can now function directly within a chat interface without additional delay. Confirmation within seconds is not enough in this context – this is about near-instant response aligned with user expectations.
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A new ton.org website and updated developer tools are expected within two to three weeks. The sequence is clear: first improve user experience, then provide tooling for developers. Usability first, then ecosystem.
Why the increase was 35%, not 5%
Toncoin rose from $1.35 to $1.90 in less than 24 hours—about a 40% daily increase before settling around $1.846. The news explains the direction, but not the scale.
Funding rates were negative, meaning short positions were paying longs to maintain their positions. When the news broke, this accumulated imbalance began to unwind.
Data from Coinglass confirms this: $459,000 in short liquidations versus $121,000 in longs, with Binance alone accounting for $227,000. Pressure built over three months was released within hours.
Open interest triples in one session
OI increased from $50 million to $200 million within hours – a 300% increase. This means approximately $150 million in new capital entered long positions between $1.60 and $1.90, i.e., after the move had already begun, with expectations that the price would continue rising.
Funding rates are now positive: long positions are paying shorts, indicating a sharp shift in market expectations from decline to growth within a single day.
This creates a specific risk. If the price returns to the 50-day average at $1.511, about 12% below current levels, a significant portion of new positions will be at a loss. With open interest at $200 million compared to the previous $50 million, the level of leverage remains unknown. The same mechanism that pushed the price up could accelerate a move downward.
What will confirm the move
RSI fell from 75.68 to 69.81 as the price pulled back from $1.90 to $1.846. The 50-day moving average is at $1.511, the 100-day at $1.422, and the 200-day at $1.367 – significantly below current levels.
The structural change remains. Telegram as the main operator and validator is not a short-term event but an operational decision that changes how the network functions.
Confirmation will come if the price holds above $1.511 on a daily close and OI remains above $150 million. This would indicate that new positions are built with conviction rather than simply following momentum.
The negative scenario: a drop in OI toward $75 million and a decline below $1.511. This would suggest the move was driven by short-term positioning rather than structural change.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
