TON Steward Looks to Draw Projects to its Ecosystem With $126M Rescue Fund
The Ton Foundation's aim is to entice projects to migrate to TON, while helping to alleviate the knock-on effects of FTX's collapse.
Nov 30, 2022 at 4:00 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/SMEJRXGG6FEE3PP7OTQF6LUBDM.jpg)
(Dimitri Wittmann/Pixabay)
The stewards of the TON network have set up a "rescue fund" with a soft commitment of $126 million to support projects experiencing liquidity problems as a result of the FTX fallout.
The TON Foundation's aim is to entice projects to migrate to TON, while helping to alleviate the knock-on effects of the dramatic collapse of Sam Bankman-Fried's crypto empire earlier this month.
The fund – which is backed DWF Labs, Darley Technologies, Hexa Capital and TONcoin Fund Ecosystem Partners – differs from Binance's $2 billion recovery fund, which will be used to buy distressed assets.
“We want to attract builders organically who are convinced by TON's fundamentals," Nan Wang, TON Foundation investment associate, told CoinDesk. "We are not necessarily buying out distressed assets ... However, we are willing to support top founders and projects slightly impacted by recent events."
The TON blockchain was developed by messaging app Telegram, but was abandoned in August 2020 following a lawsuit from the U.S. Securities and Exchange Commission (SEC).
Developers of the ecosystem subsequently formed the TON Foundation to keep the project alive.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/008ae87f-5c6e-412b-816b-ded600ac5054.png)
Jamie Crawley is a CoinDesk news reporter based in London.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.