MEXC Ventures' Major Investment in Telegram's Blockchain Platform TON to Boost Global Web3 Accessibility
Summary:
The Open Network (TON), a decentralized blockchain platform originally designed by Telegram, has received significant funding from MEXC Ventures, the venture subsidiary of cryptocurrency exchange MEXC. The strategic partnership between MEXC and the TON Foundation aims to enhance global Web3 accessibility. As part of the deal, MEXC will provide marketing services for TON-based projects and plans to launch a TON collateral lending service. Amid these developments, some in the crypto community have reported potential issues with the MEXC exchange, urging caution.
Telegram's original decentralized blockchain platform, The Open Network (TON), has garnered substantial financial backing from MEXC Ventures, the venture branch of the crypto exchange MEXC. The Oct. 4 announcement revealed an eight-figure investment secured from the subsidy of the global crypto exchange, MEXC. Accompanying this financial support, MEXC and the TON Foundation have strategized a partnership to encourage worldwide Web3 accessibility by decreasing the entry barriers.
The agreement will see MEXC's cryptocurrency exchange providing marketing and promotional services for TON-based initiatives on their platform. In this arrangement, the company also plans to start a TON collateral loaning service and remove trading fees for the TON token, which had been uniform across all cryptocurrencies on the platform, according to Justin Hyun, TON Foundation's Director of Growth.
MEXC Ventures will proceed to finance TON-based mini apps, maintaining its existing support to TON projects like the independent protocol Megaton Finance and platforms such as TONPlay, Fanzee, and Sonet. Further financial assistance for Wallet on Telegram is under consideration, Hyun mentioned. With MEXC Ventures' backing, the TON Foundation aims to boost the adoption of the Web3 ecosystem within the Telegram messenger, aiming to make the technology as seamless and user-friendly as possible regardless of a person's familiarity with the blockchain world.
Pavel Durov, the founder of Telegram, has consistently emphasized the role of the TON blockchain in Telegram's prospective Web3 venture. By mid-September, Telegram had integrated the TON Wallet as a mini-app, granting users direct access to coins such as TON, Bitcoin, and Tether. Durov stressed that the TON technology is an open-source community creation and that the TON wallet is a third-party application.
Following a legal confrontation with US securities regulators, Telegram had to withdraw its involvement in TON development in 2020. TON's investor, MEXC Ventures, is an affiliate of the central cryptocurrency exchange MEXC, established in 2018 and registered in Seychelles.
Despite these developments, certain members of the cryptocurrency community have communicated potential issues with MEXC, cautioning users about the risks associated with a non-KYC exchange. They suspect MEXC of market making on their own exchange, which could pose risks to profitable traders.
MEX, which claims to hold licenses in Australia, Estonia, and the United States, trades almost $600 million daily and serves users in 200 countries. Critics in the crypto community, however, remain skeptical and advise caution.
Published At
10/4/2023 1:50:03 PM
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