The burgeoning TON blockchain, originally birthed by the messaging titan Telegram, is setting a new precedent with the launch of its dedicated venture capital fund. This newly established entity, TON Ventures, emerges from the network’s developmental framework as an independent, profit-oriented organization.

On Wednesday, TON Ventures revealed its inception, spearheaded by Ian Wittkopp, formerly the director of TON Accelerator, alongside Inal Kardan, the ex-gaming lead at TON Foundation. The venture has successfully amassed $40 million, earmarked for investment in nascent consumer applications within the TON ecosystem that exhibit “mass appeal.”

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According to the press release, the fund’s contributors primarily consist of individual private investors who are keen to bolster the enduring expansion of the TON ecosystem. In an email exchange with CoinDesk, the founders underscored their commitment to the long-term vision of the project.

Recent trends indicate a remarkable surge in the TON ecosystem’s popularity. Web3 games such as Hamster Kombat and Notcoin have captivated millions of users. These applications are constructed atop The Open Network (TON), a decentralized layer-1 blockchain initially created by Telegram. However, following a regulatory settlement with the U.S. Securities and Exchange Commission (SEC) in 2020, the project continued independently.

Earlier this year, Pantera Capital, a notable digital asset investment firm, reported making its largest investment to date in TON, with indications of a second investment round in the pipeline. Additionally, Tether, a prominent cryptocurrency entity, integrated its USDT stablecoin into the TON network in April, enhancing peer-to-peer transactions among Telegram users.

The native token of the network, toncoin (TON), has witnessed a dramatic 339% increase in value over the past year, soaring into the top 10 cryptocurrencies with a market capitalization of $16 billion.

“TON and Telegram have instigated a transformative shift within the web3 landscape,” remarked Ian Wittkopp, managing partner of TON Ventures. “Leveraging our profound experience within the ecosystem, we are poised to maximize impact through strategic capital deployment for TON.”