Why the TON Crystal rate has fallen 3 times since the launch of the network

Why the TON Crystal rate has fallen 3 times since the launch of the network

People who recently got involved into Free TON often open charts and see a picture of a rather serious drop of the native token of the network. Bloggers who make reviews on the blockchain mistakenly say that at the beginning the coin cost almost $2, and now it has fallen. Let's figure out if it is true.

The history of the price of TON Crystal on coinmarketcap.com began 26.10.2020, and the blockchain was launched 07.05.2020. What happened to the TON price for almost six months? Didn't anyone trade a coin? Of course people did, but not via exchanges.

The first tokens appeared in free circulation 17.07.2020 when prizes were distributed between the winners of the first competitions. Moreover, a chat for p2p token exchange has appeared, and it still exists today.


At the beginning there were offers from $0.1 to $10 per token, but in reality a significant number of tokens could be sold on average for $0.5. And until mid-October, the price was kept in the interval $0.4 - $0.6 per token.

What reasons could lead to higher prices?

  1. Token deficit

The community grew, and the supply of tokens on the market practically did not increase. Autumn 2020 was marked by a long wait for the distribution of steaks between validators who won the corresponding competition. In addition, not all token holders are ready to sell them: today ~ 570,000,000 TON Crystal are in circulation, and only ~ 12,000,000 are on exchanges. Demand exceeded supply, the price of the token went up. The laws of the economy work. In November and December 2020, more than 200 000 000 TON came into circulation, after which the price began to decline to $0.17. At the time of writing this article, the value of the coin is $0.48 and, with a small exception, has been in the $0.4 - $0.6 interval for more than 3 months.

2. Artificial overpricing

When listing a coin on the exchange, the initial price is set and aggregators like coinmarketcap take it into account. Let's take an example with the Kuna exchange.


Kuna launched the TON/USDT trading pair 11.12.2020. Before the start of trading, the price of the asset was $1.98 and on the first day fell to $0.9. There is no answer to the question “Where did the starting price come from?”. On the p2p site, before listing, the cost was less than a dollar.


Almost a year has passed since the beginning of p2p trading, the token price has been growing and falling, but came to a starting $0.5. And this is great for a young organically developing network. Now work proceeds in various directions: DeFi, NFT, Gov 2.0, bridges with other blockchains, the creation and development of information resources, etc. The foundation of the network is being built, and decentralized and fast end-user applications will be created on this foundation. With an increase in the number of these applications, the value of blockchain and its native currency will grow organically. Five important advantages of Free TON are written in one of the previous articles.

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