21 shares Toncoin worked by placing ETP TONN on six exchanges
21 Shares, the largest cryptocurrency exchange-traded product (ETP) issuer, is launching a staking ETP based on the cryptocurrency Toncoin (TON).
The new Toncoin Staking ETP is a 100% physically backed product that tracks the performance of Toncoin and invests additional profits into the ETP for improved performance.
The product is On March 27, the Swiss Six exchange will begin trading in ticker tons, the company said in an announcement to Cointelegraph on Wednesday.
The new crypto investment product aims to give investors a chance to earn tons of rewards without having to set up and manage a node.
The TON Blockchain uses a proof-of-stake (PoS) model to achieve network consensus, allowing validators – or supporters of network security – to win rewards.
According to the Ton Foundation, users typically need at least 600,000 tons ($2.9 million), but users are allowed to pool their energy and pool their assets.
With 21Shares, investors can enjoy the benefits of staking TONCOIN without the technical complications associated with TON staking. Instead, they will have the convenience and flexibility of traditional financial markets, the announcement said.
According to Ophelia Snyder, co-founder and president of 21Shares, TONN is “the first and only TON ETP” ever launched. Snyder told Cointelegraph that the firm chose to launch a stock ETP instead of a spot because ETP payouts are “higher than non-stock ETPs and stock yields benefit ETP holders.” she added.
“A non-equity ETP leaves their source of income paid per ton, so for investors thinking in USD contracts, if the ton goes up, their production price will increase in dollars.”
According to the 21Shares website, the Toncoin Staking ETP will hold $25 million at launch, which is roughly 5 million tons at the time of writing. ETP net asset value starts at $20.
21Shares mentioned that the TONN ETP, a blockchain network used by popular crypto-friendly messengers like Telegram, provides investors with a controlled and secure way.
Related: TON Blockchain Launches $115M Community Incentive Program
“The Open Network aims to create an entire ecosystem of user-facing services such as the super app WeChat, which includes decentralized storage, decentralized VPN, payment solutions and native wallets directly within the messaging app,” 21Shares said in a statement.
Open Network or TON was launched in 2019 as “Telegram Open Network” and developed by Pavel Durov Telegram.
The company was forced to cut its involvement in the blockchain project in May 2020 following a long-running legal battle with the United States Securities and Exchange Commission.
Despite formally discontinuing Ton, Telegram continues to be actively involved in promoting the open source Ton technology and Toncoin.
Ton is one of the few coins natively supported in the Cryptodia wallet on Telegram, known simply as “Wallet”.
Coinciding with the ongoing rally in the cryptocurrency markets, TONE has seen a recent surge, rising 134% in the past 30 days. According to CoinGecko, at the time of writing, the coin is at $4.97, down 4.5% in the last 24 hours.
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