- Binance has announced a new Toncoin (TON) lock-up program for its users.
- TON lockup subscribers can earn up to 5.9% APR as rewards.
- TON surged 1.36% less than three hours after the token lockup announcement.
Binance has announced a new Toncoin (TON) lock-up program, offering users up to 5.9% Annual Percentage Rate (APR) for participating. The program aims to attract more users to adopt TON and hold the cryptocurrency for a specified duration. The newly announced program will last throughout a promotion period, which the announcement did not stipulate.
Meanwhile, Binance noted that only users who subscribe between September 3 and September 23 2024 would be eligible for the TON Binance Simple Earn program. The crypto exchange also outlined the subscription format for the program and explained how it would calculate users’ rewards, noting that it would distribute users’ earnings daily.
Read also: Crypto Price Watch: TON, NOT, XRP, BLUR, DOGS Show Mixed Signals
Typically, cryptocurrency projects implement token lockups to check potential price depreciation of their native cryptos via excessive sales. Like the Binance TON lockup program, the process involves withdrawing significant token amounts from circulation, leading to a decrease in market supply. Token lockup programs are not permanent, but last over a stipulated period.
In addition to withdrawing the tokens from circulation, token lockup programs are usually incentivized, thus increasing the demand for the crypto asset. Binance’s 5.9% APR for the TON lockup program represents an incentivization implementation. It aims to attract more users to adopt TON and hold the crypto asset for a stipulated period.
Read also:Toncoin’s Metcalfe Valuation: Is the Crypto Undervalued?
While token lockups, like the newly launched Binance TON lockup, provide bonus-earning opportunities for users, it restricts them from accessing their crypto assets, making them unable to liquidate such assets, in case of falling prices. Besides falling prices, users who may want to apply the crypto assets for other purposes would be unable to access them until the end of the lockup period.
TON responded to Binance’s recent announcement by surging 1.36% in less than three hours. The open-source decentralized blockchain’s crypto continued in the upward direction after bouncing off support at $5.09. TON traded for $5.27 at the time of writing but remained in the bearish region below the 0.236 Fibonacci retracement line on the daily chart, according to data from TradingView.
Increased TON demand could push the crypto asset above the $5.5 resistance to flip users’ sentiment on the altcoin. That would open the way for TON to push towards higher levels and escape from the current bearish pressure that saw it lose over 25% of its value since August 24.
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