21Shares Launches Toncoin Staking ETP on Swiss SIX Exchange
Summary:
Cryptocurrency Exchange-Traded Product (ETP) issuer, 21Shares, is launching a staking ETP based on Toncoin (TON). The new ETP - to be traded on the Swiss SIX Exchange - aims to provide investors with TON staking rewards without the need to manage a staking node. The launch offers a regulated way for investors to enter The Open Network, a blockchain network used by crypto-friendly messaging apps such as Telegram. Toncoin has recently experienced significant growth, rising 134% over the past 30 days.
21Shares, a major issuer of cryptocurrency exchange-traded products (ETPs), is set to introduce a staking ETP based on Toncoin (TON), a type of cryptocurrency. The fully physically backed Toncoin Staking ETP is designed to mirror TON's performance and it reinvests staking dividends into the ETP to boost its performance. Commencing on March 27, the product will be traded on the Swiss SIX Exchange under the ticker TONN, as per the company's press statement on Wednesday. This new crypto investment vehicle is targeted at enabling investors to gain TON staking profits, eliminating the need for staking node management or setup. The TON Blockchain operates on a proof-of-stake (PoS) consensus model, whereby validators, also known as network security proponents, can yield rewards via staking. In order to stake, users typically require at least 600,000 TON ($2.9 million) as stipulated by the TON Foundation, however, they can combine their resources. With 21Shares, investors can stake Toncoin without dealing with TON staking's technicalities, and instead get the versatility and liquidity of conventional financial markets, as the press release states. The company's co-founder and president, Ophelia Snyder, said that TONN is the first and singular TON ETP ever established. She further stated that they chose to launch a staking ETP over a spot one because the former yields benefits to the ETP holders, which the latter would not. The $25 million launch of the Toncoin Staking ETP is equivalent to about 5 million TON according to 21Shares' website. The ETP's net asset value makes a debut at $20. The TONN ETP is a regulated and protected means for investors to access The Open Network, the blockchain network used by prominent crypto-friendly messaging apps such as Telegram, according to 21Shares. The company's statement also highlighted The Open Network's intention to create a broad ecosystem of consumer-centric services, likened to super-app WeChat, providing products like a decentralized VPN, storage, and a payments solution. The Open Network, abbreviated as TON, commenced as "Telegram Open Network" in 2019, founded by Pavel Durov's Telegram. The company had to withdraw its connection to the blockchain project in May 2020 after a lengthy legal conflict with the U.S. Securities and Exchange Commission. Despite TON's official termination, Telegram persistently promoted the open-sourced TON technology and Toncoin, with TON being one of few coins supported by the custodial cryptocurrency wallet in Telegram, known as "Wallet". Coinciding with the continuing upsurge in cryptocurrency markets, TON recently exhibited considerable growth, showing an increase of 134% over the last 30 days. Currently, the coin's trading value stands at $4.97, showing a decrease of around 4.5% over the preceding 24 hours, as reported by CoinGecko.
Published At
3/27/2024 4:28:36 PM
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