Ton currency experiences a 7.6% drop following Verb's plan to establish the first public Toncoin Treasury company, with a proposed investment of $558 million.
In an exciting development for the cryptocurrency market, Verb Technology, a Nasdaq-listed company, has announced plans to create a publicly traded treasury reserve for Toncoin (TON). The move is expected to close around August 7, 2025, and will see Verb Technology raise approximately $558 million to acquire TON as its main treasury reserve, aiming to become one of the largest global holders of the cryptocurrency.
The capital raise was achieved via an oversubscribed PIPE (Private Investment in Public Equity) deal, involving about 58.7 million shares at $9.51 per share. This move marks a significant institutional commitment to Toncoin, with Verb Technology aiming to acquire roughly 5% of Toncoin’s circulating supply.
The initiative is partnered with Kingsway Capital, led by Manuel Stotz, who also serves as Executive Chairman of Verb and President of the TON Foundation. The leadership team includes experts with strong backgrounds in blockchain and crypto finance, signaling serious institutional backing and expertise.
This move follows important developments such as TON being selected as the exclusive blockchain for Telegram, which has over a billion monthly active users—a factor likely increasing demand and visibility for Toncoin.
Potential implications for Toncoin’s price include increased demand and price support due to scarcity and institutional interest, staking rewards and cash flow generation, enhanced market legitimacy, and potential volatility.
Following the news, Verb's shares surged roughly 114%. However, it remains unclear how the influx of liquidity from the token purchase will impact TON's price. The recent stock rallies may reflect investor speculation about intentions rather than real market activity.
Analysts and traders remain cautious about TON, reflecting a pattern of recent setbacks and unfulfilled promises surrounding TON. Despite the deal, TON's token plunged in the hours following the news, trading around $3.30.
The TON community appears to be jumping on the hype train surrounding public treasury companies. However, it's important to note that the planned $558 million token purchase by Verb Technology hasn't started yet. The visa program mentioned earlier, which caused a temporary price surge for TON, wasn't officially approved by the government, and regulatory issues halted the plan.
In conclusion, Verb Technology's plan represents a significant institutional commitment to Toncoin with potential to boost TON's price through large-scale token acquisition, staking-based cash flow, and increased market confidence, especially supported by the exclusive Telegram blockchain partnership. As always, investors are advised to conduct thorough research before making any investment decisions.
- The institutional commitment to Toncoin has been further accentuated through Verb Technology's aim to acquire 5% of Toncoin’s circulating supply, a move that was facilitated by an oversubscribed PIPE deal in the realm of finance and investing.
- Leveraging expertise from blockchain and crypto finance, Verb Technology's leadership team, in collaboration with Kingsway Capital, is poised to invest in Toncoin technology, potentially impacting Toncoin's price, market legitimacy, and volatility.
