Toncoin (TON) experienced a sharp decline of 8.9% in the last 24 hours, trading near $2.07 with a market capitalization of $5.16 billion, following Nasdaq's compliance warning to TON Strategy, a major holder of the token. The warning was issued due to TON Strategy's failure to obtain shareholder approval for stock issuance under a private investment in public equity (PIPE) financing, which funded a $273 million Toncoin purchase. Trading volume surged 50% to $199 million, indicating heightened selling pressure and opportunistic buying activity.
Nasdaq's reprimand, detailed in an 8-K filing with the SEC, highlighted that TON Strategy issued shares representing at least 20% of total outstanding shares without proper approval, with 48.78% of the $558 million PIPE proceeds used for the Toncoin acquisition. Despite the violation, Nasdaq deemed it unintentional and not grounds for delisting, giving TON Strategy 45 days to submit a compliance plan. The company, which holds over 217 million Toncoin tokens and recently restructured with new leadership including former TON Foundation president Manuel Stotz, faces scrutiny over corporate governance.
Technical analysts noted that Toncoin broke key support levels, with resistance observed near $2.19 during intraday rebound attempts. However, pro-crypto analysts view the pullback as temporary, citing Toncoin's expanding ecosystem within Telegram's user base, which drives adoption in payments, tokenized assets, and gaming. Long-term prospects remain tied to real-world usage and partnerships, with some market participants seeing the dip as an accumulation opportunity amid growing on-chain activity.
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