Telegram, the famed messaging platform, is on the cusp of a transformative leap, one that could catapult it into the world of decentralized blockchain. The Open Network (TON), the brainchild of Telegram, has successfully bagged a sizeable eight-figure investment from MEXC Ventures. This significant backing comes from the venture arm of the globally recognized cryptocurrency exchange MEXC.
Unveiled to the world on October 4, this partnership between MEXC Ventures and the TON Foundation is aimed at driving the global push for Web3 accessibility. The objective? To democratize access and break down the barriers that have been prevalent in this space.
Under the newly inked partnership, the TON Foundation will benefit from marketing and promotional efforts by MEXC for TON-centric projects on its exchange platform. Further sweetening the deal, MEXC plans to roll out a lending service using TON as collateral and has even committed to dropping trading fees for the TON token altogether. TON Foundation's director of growth, Justin Hyun, in his chat with Cointelegraph, explained, "Most cryptocurrencies on the exchange had a similar cost structure previously."
But that's not all. MEXC Ventures is set to fund more TON-based mini-apps, extending its support beyond current beneficiaries like the self-regulating Megaton Finance, GameFi platform TONPlay, Fanzee, and Sonet. One of the most anticipated outcomes of this collaboration is a potential crypto wallet within Telegram, a development Justin Hyun confirmed they are actively discussing.
The goal, as articulated by Hyun, is simple: seamlessly integrate the Web3 ecosystem within the Telegram messenger. "The intersection of blockchain and everyday tech should be hassle-free. With the integration of TON into Telegram, using cryptocurrency becomes as simple as sending a text."
Amidst the buzz of this partnership, Telegram founder Pavel Durov has consistently highlighted TON's crucial role in the app's foray into the Web3 space. Just last month, Telegram made strides in this direction by integrating the TON Wallet as a mini-app. This feature grants users immediate access to a range of cryptocurrencies, including Toncoin (TON), Bitcoin, and Tether, directly via the app. Despite this integration, Durov was quick to clarify that the TON technology came from the open-source community and wasn't a Telegram product. He emphasized the TON Wallet's status as an independent third-party application.
It's essential to remember Telegram's rocky past with TON. In 2020, the messaging platform had to pull the plug on its involvement with TON following an intense legal skirmish with U.S. securities regulators.
A quick look at TON's new investor, MEXC Ventures, reveals its roots in the centralized cryptocurrency exchange world. Established in 2018 and based in Seychelles, MEXC has found mentions on prominent crypto aggregators, including CoinGecko and CoinMarketCap.
However, the cryptocurrency landscape isn't without its share of controversies. Certain factions within the crypto community have voiced concerns regarding their experiences with MEXC. Tweets alleging dubious market-making practices by MEXC have surfaced, with users cautioning about the potential pitfalls of navigating a non-Know Your Customer exchange.
"I'm growing suspicious that @MEXC_Global is operating as a market maker on its own exchange. If you end up making a profit there, they might block you, giving myriad reasons, ultimately holding onto your funds. I'd advise steering clear of this platform. @MEXC_CEO," reads one such tweet.
As Telegram gears up for its ambitious Web3 journey, it's clear that the path is laden with both immense opportunities and challenges. Only time will reveal how this partnership pans out and the ramifications it holds for the wider crypto ecosystem.