The Telegram-related Toncoin (TON) lost billions of dollars in market capitalization out of nowhere last Wednesday, without affecting its price. Speculation within the crypto community about this remarkable development was high, until the project revealed the cause of the price fall after a few hours.

Toncoin loses $7 billion in value

Early in the evening on Wednesday, the market value of Toncoin took a big hit out of nowhere.

The market cap dropped overnight by an astronomical total of more than $7 billion. Specifically, the market cap fell from above $22.6 billion to roughly $15.6 billion.

Thanks to the drop, Toncoin was even kicked out of the top 10, in favor of Cardano (ADA). The market capitalization is calculated by multiplying the price by the number of circulating coins.

Remarkably, the price of toncoin did not fall significantly at the same time as the market value fell. This automatically means that the number of circulating coins has been tinkered with. Since there was no reporting about this from the project itself, many crypto owners were skeptical at the time.

Later in the evening, the project informed about the development through a message on social media platform Telegram. The Open Network wrote that data aggregators now track the circulating TON supply differently. The toncoins held by Telegram, The Open Network Foundation and the TON Believers Fund are now excluded when calculating the total market capitalization.

The change is said to have been introduced to be in line with ”industry practice” and followed a thorough review of the TON blockchain data.

Thanks to the sharp fall in the price of Shiba Inu in recent days, Toncoin has now secured a spot within the top 10 again, albeit behind Cardano.

TON’s Telegram commitment

The TON blockchain was launched in 2018 by the founders of Telegram. In 2020, the popular messaging app was forced to abandon the project due to a lawsuit with the US Securities and Exchange Commission (SEC). Since then, the project has been continued by a community of independent developers and renamed The Open Network.

Although Telegram has taken its hands off the project, it remains closely associated with the network. This commitment has been taken to the next level in recent months with the launch of an advertising platform on the TON network. This was a big boost for TON’s share price, pushing it into the top 10 for the first time at the beginning of April.

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