Exchange-traded products (ETPs), issuer 21Shares, is debuting Toncoin staking ETP under the ticker symbol TONN on the SIX Exchange.
While reinvesting staking yields into the ETP for enhanced performance, the new Toncoin Staking ETP is a 100% physically backed product that monitors the performance of TON.
The product will begin trading under the ticker TONN on the Swiss SIX Exchange on March 27, the company announced to Cointelegraph on Wednesday.
The objective of the novel cryptocurrency investment product is to enable investors to acquire TON staking rewards without the requirement of establishing and overseeing a staking node.
The TON Blockchain achieves network consensus via a proof-of-stake (PoS) mechanism, enabling validators—or advocates for network security—to receive rewards through staking.
According to the TON Foundation, users generally require a minimum of 600,000 TON ($2.9 million) in assets to qualify for staking. However, users can consolidate their resources in concert.
21Shares enables investors to experience the advantages of Toncoin staking while circumventing the technical intricacies typically associated with TON staking. As an alternative, they will benefit from the liquidity and convenience of conventional financial markets, according to the announcement.
Ophelia Snyder, president and co-founder of 21Shares, asserts that TONN is the “first and only TON ETP” ever issued. Snyder explained the company launched a staking ETP rather than a spot ETP because staking ETPs “produce a higher yield for ETP holders than non-staking ETPs.” She further stated:
“A non-staking ETP would forego their income stream which is paid in TON, so for investors thinking in USD terms, their USD on yield cost goes up if TON goes up.”
The Toncoin Staking ETP contains $25 million at launch, or approximately 5 million TON at the time of writing, as stated on the 21Shares website. The initial net asset value of the ETP is $20.
The TONN ETP, according to 21Shares, offers investors a secure and regulated connection to The Open Network, a blockchain network utilized by well-known crypto-friendly messaging platforms such as Telegram.
According to a 21Shares announcement, “The Open Network endeavors to establish an all-encompassing ecosystem of user-facing services akin to the super-app WeChat,” which will include a native wallet to store cryptocurrencies directly within the messaging app, decentralized storage, a decentralized VPN, a payments solution, and a payments solution.
About the Open Network
In 2019, Pavel Durov’s Telegram initiated The Open Network, or TON, under the name “Telegram Open Network.”
A prolonged legal dispute with the Securities and Exchange Commission of the United States compelled the organization to cease participation in the blockchain project in May 2020.
Notwithstanding its official withdrawal from TON, Telegram has actively promoted open-source TON technology and Toncoin.
TON is among the limited number of currencies that find native support in the custodial cryptocurrency wallet accessible via Telegram, commonly called “Wallet.”
Consistent with the ongoing upswing in cryptocurrency markets, TON has experienced substantial growth in the last thirty days, increasing by 134%. According to CoinGecko, the coin is trading at $4.97 at the time of writing, a decrease of approximately 4.5% over the previous twenty-four hours.
