Regulatory Oversight Triggers Toncoin Drop and Heightens Uncertainty in Crypto Markets
- Toncoin dropped over 5% to $2.165 as Nasdaq reprimanded TON Strategy for unapproved stock issuance to fund a $272.7M crypto purchase. - The violation, exceeding 20% of shares, triggered regulatory scrutiny and raised governance concerns for TON Strategy's public treasury strategy. - Parallel Nasdaq actions against Polestar and Global Engine Group highlight tightening rules for firms trading below $1, signaling broader market compliance risks. - Analysts warn the incident could deter institutional crypto
On November 3, 2025, Toncoin's value dropped by more than 5% to $2.165 after Nasdaq issued a warning to
The disruption was triggered by a letter from Nasdaq criticizing TON Strategy for not obtaining shareholder consent before issuing new shares to finance the
This episode highlights the increasing regulatory attention on how corporations manage crypto assets. TON Strategy, previously known as Verb Technology Company, reorganized in August 2024 to become a publicly traded TON Treasury Strategy Company, appointing former TON Foundation president Manuel Stotz as executive chairman, according to Coinotag. While Nasdaq’s response was measured, the incident raises concerns about oversight in volatile asset sectors. Regulatory experts cited in compliance reviews emphasized, “Such thresholds are designed to safeguard investors from excessive equity dilution.”
The impact goes beyond Toncoin. Swedish electric vehicle manufacturer Polestar (PSNY) is facing its own Nasdaq compliance challenge, having received a minimum bid price deficiency notice on October 31, 2025, as detailed in a
Experts caution that TON Strategy’s rule breach may discourage institutions from adopting crypto treasury strategies. CEO Veronika Kapustina recently observed “early indications of a bubble” in digital asset treasuries, a warning that has gained urgency following the Nasdaq notice. Meanwhile, Toncoin’s price swings reflect broader instability in the crypto sector, with the CoinDesk 20 index falling 3.7% in a single day.
TON Strategy now faces the challenge of meeting regulatory standards while retaining investor trust. Although Nasdaq’s warning was not punitive, it requires the company to adhere to stricter rules for future share issuances, as noted by Cointelegraph. Successfully managing aggressive Toncoin accumulation alongside transparent governance will be essential for the company’s future.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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