The TON ecosystem, known for its rapid growth and innovative web3 applications, has established its own venture capital fund to further bolster its development. TON Ventures, an independent entity spun out from the network’s development foundation, was announced on Wednesday and is set to invest $40 million in early-stage consumer applications within the TON ecosystem.

Leadership and Investment Focus

Led by Ian Wittkopp, former director of TON Accelerator, and Inal Kardan, former gaming lead at TON Foundation, TON Ventures aims to support projects with “mass appeal.” The fund’s investors primarily consist of individual private investors interested in fostering the long-term growth of the TON ecosystem.

The TON blockchain, originally initiated by the messaging app Telegram, has gained significant traction, particularly with web3 games like Hamster Kombat and Notcoin, which have attracted millions of users. These applications are built on The Open Network (TON), a decentralized layer-1 blockchain that has evolved independently following regulatory challenges faced by Telegram, which settled a lawsuit with the U.S. Securities and Exchange Commission (SEC) in 2020.

Growing Interest in TON

Digital asset investment firm Pantera Capital has reportedly made its largest investment in TON’s history and is looking to raise funds for a second investment round. Additionally, crypto giant Tether introduced its USDT stablecoin to the TON network in April, enhancing peer-to-peer payments among Telegram users.

The native token of the network, toncoin (TON), has also seen remarkable growth, soaring by 339% over the past year and landing in the top 10 largest cryptocurrencies with a market capitalization of $16 billion.

Ian Wittkopp expressed optimism about the fund’s potential, stating, “TON and Telegram have created a paradigm shift for web3. With our deep experience in the ecosystem, we believe the highest leverage point is in capital allocation for TON.”