Verb Technology Announces Plans for Public Treasury Reserve for TONcoin Amid Mixed Market Reactions

Unsettled Reaction to Verb Technology’s Plan to Create TON Treasury Reserve

The recent announcement by Verb Technology to create a publicly traded treasury reserve for Toncoin (TON) appears to have left the crypto investment community relatively unimpressed. Verb Technology, a live-stream social commerce platform listed on the Nasdaq, announced the creation of a TON treasury reserve following a $558 million private investment in public equity (PIPE) transaction.

The Modest Impact of Verb’s Announcement

Despite the magnitude of the deal announced on August 4, the price of the TON token seemed to wobble rather than rise. In fact, its value plunged in the immediate aftermath of the announcement, dropping by 7.6% in the subsequent 24 hours to trade at about $3.30. This significant dip made TON the highest losing cryptocurrency among the top 100, as per CoinGecko’s ranking.

Verb’s Hope on Becoming one of the Largest Holders of TON

Verb Technology, which plans to rebrand as TON Strategy Co or just TSC, has ambitious plans for the future of the TON token. The company intends to use the majority of its PIPE proceeds to acquire the TON token, placing a large bet on the token’s potential to lead as the sole blockchain fueling Telegram’s extensive ecosystem.

TON’s Rollercoaster Journey

Despite close ties to Telegram, TON’s journey in the crypto market has experienced substantial ebbs and flows. Earlier this year, TON was appointed as the main blockchain partner of Telegram. This partnership empowered Telegram to support numerous features such as mini apps, payments, tokenized usernames, and ads, all borne by the TON ecosystem. Additionally, the roll-out of TON Wallet inside Telegram for US users marked a significant milestone for the network.

Anticipation and Reality of the Planned $558 Million Token Purchase

Despite Verb’s ambitious plan, the TON token purchase is yet to begin. Therefore, it remains unknown how the inflow of liquidity will affect TON’s price. Past observations by Animoca Brands suggest that many companies only insinuate treasury token purchases without making significant purchases. This kind of market behavior implies that recent stock rallies might reflect speculative investor intentions rather than meaningful market activity.

An Unimpressive Market Reaction to TON’s Initiatives

So far, the steadfast efforts to keep the price of TON stable have not paid off. Despite the concerted efforts, it remains unclear whether the push of TON Wallet in the US has had any significant impact. Also, earlier in July, a short-lived hike in TON’s price was experienced when Toncoin suggested in a now-deleted blog post that TON token holders could apply for a ten-year U.A.E. Golden Visa if they staked $100,000 worth of TON for three years and paid a $35,000 one-time fee. However, this program had to halt due to regulatory issues.

The Uncertain Future of TON Treasury Strategy

Despite the delays, obstacles, and skepticism, the TON community seems to be riding the wave of hype surrounding public treasury companies. Manuel Stotz, the incoming executive chairman of Verb, expressed optimism on TON’s potential. He believes that TON offers not only the possibility of expansion in value but also offers staking yield, implying that TSC can benefit from staking rewards. Despite these optimistic projections, the reality on the ground implies a cautious approach and a wavering investor confidence dictated by a pattern of recent setbacks and unfulfilled promises surrounding TON. Therefore, the unfolding of these plans and the subsequent market reaction will be a keen point of interest to both existing and potential investors.