Highlights:
- TON blockchain resumed its operation after the second outage.
- DOGS token launch overwhelmed the TON network, causing significant congestion.
- DOGS price surged 20% in the past 24 hours.
In a recent post, Telegram Wallet announced that the TON network is operational again following the second outage that paused TON blockchain transactions. The most recent outage lasted just over six hours. As a result, exchanges such as Bybit suspended deposits and withdrawals through the TON network.
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TON attributed the disruption to a surge in network activity resulting from the launch of a new TON-based memecoin called Dogs (DOGS). “TON network is fully operational!” the TON Community chat announced, adding that withdrawals and deposits to TON wallets would be processed in the coming hours and days.
Block production on TON experiencing further disruption
Block production issues began at 19:19 UTC. The disruption appears to be due to heavy load attributed to DOGS token minting. TON Core is working on a solution.
We will continue to update you on the situation as it evolves.…
— TON 💎 (@ton_blockchain) August 28, 2024
The network first experienced a downtime around 11:00 PM UTC on August 27, halting block production for six hours. The network resumed operation around 5:30 AM UTC on August 28. The initial outage was attributed by market commentators and members of the TON community to the DOGS memecoin. This was later confirmed by official TON channels following a second network downtime. In the past 36 hours, the TON network has faced over 12 hours of downtime.
Despite these setbacks, Toncoin, the native token of the TON protocol, saw an 5% increase in value after the news, according to data from CoinMarketCap. However, it remained below its levels prior to the arrest of Telegram CEO Pavel Durov.
Despite Telegram and TON being legally separate, their close connection has attracted significant attention, especially after Durov’s recent arrest in France. He is facing charges of facilitating illicit transactions, child exploitation, and failure to cooperate with authorities, among other allegations. Meanwhile, French authorities granted Durov bail under strict conditions.
DOGS Token Launch Causes TON Blockchain Congestion
The launch of the DOGS token caused major congestion on the TON blockchain, resulting in an unexpected network outage. The surge in on-chain activity due to the high demand for the airdropped DOGS tokens overwhelmed the network’s capacity. Launched in July 2024, DOGS is marketed as the “most Telegram-native memecoin,” inspired by Spotty, a mascot popularized by Telegram founder and CEO Pavel Durov.
DOGS kicked off its airdrop on Monday, allocating 81.5% of 550 billion tokens to community members. Last week, DOGS reported that six million verified users had requested the airdrop.
The DOGS token has swiftly attracted a large following, with its official Telegram channel, Dogs Community, amassing nearly 17 million subscribers. Furthermore, the DOGS Community’s official X account has gathered 3.9 million followers since its July launch, placing it on par with major players like Pi Network and Ethereum in social media influence.
DOGS Price Soars Amidst Market Crash
As with many airdrop coins, DOGS quickly dropped by over 30% from its all-time high since launch. DOGS reached a peak of $0.0018 on August 26 but subsequently fell to as low as $0.001219. Interestingly, while Bitcoin dropped to $58,000 yesterday, DOGS saw a rebound, surging nearly 20% to reach $0.0015.
This uptick may have prompted DOGS holders to take profits and sell their tokens, contributing to the stress on the TON network. Moreover, Hamster Kombat will launch its HMSTR token and airdrop on September 26. The TON network will likely face increased strain due to the game’s popularity and tap-to-earn model.
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