Toncoin (TON) has pulled back from its bullish momentum after Nasdaq reprimanded TON Strategy, a major holder of TON, for failing to obtain shareholder approval before issuing stock to finance a $272.7 million purchase.

The price of Toncoin has dropped, with a market cap of $5.16 billion, marking an 8.07% 24-hour decline.  Additionally, trading volumes surged over 50% to 5.76 million tokens, which is nearly 1.5 times the 24-hour average. This confirms a strong selling conviction. 

Nasdaq’s notice does question the legitimacy of Toncoin

Technical traders noted that Toncoin broke below several key support zones during the decline. Intraday attempts to rebound saw selling pressure re-emerge near the 2.19 dollar resistance level, a zone that traders will monitor to gauge short-term sentiment.

Additionally, analysts stated that the coin will face strong volatility because over 68% of TON’s supply is held by whale wallets. On the other hand, the long-term holders hold approximately 20% of the supply, which is scarce, amplifying price swings when large players trade.

However, even after the setback, several analysts argue that the episode is more procedural than fundamental. They highlighted that Nasdaq’s notice does not question the legitimacy of Toncoin nor the growing adoption of the TON blockchain. Instead, the issue revolves around corporate governance at TON Strategy, a factor that can be addressed without impacting network development.

The growing integration inside Telegram’s worldwide user base is the driving force behind Toncoin’s burgeoning ecosystem. Both developers and consumers are drawn to new uses in tokenized assets, gaming, and payments.

Toncoin’s price today. Source: CoinmarketCap

Meanwhile, Cryptopolitan’s technical analysis shows that Toncoin is bearish. The coin’s momentum and volatility are rising over the shorter timeframes, threatening support at $2.04. Investors are avoiding the market, as evidenced by the falling trading volumes. The coin is currently trading at $2.09.

Nasdaq gives TON Strategy 45 days to present a plan to regain compliance

Ton Strategy received a notice from the Nasdaq Stock Market regarding noncompliance with shareholder approval requirements and the Nasdaq Listing Rule. This came when issuing common stock and pre-funded warrants as part of a private investment in public equity (PIPE) financing, which ended on August 7, 2025.

The press release states that the PIPE financing was completed under a subscription agreement from August 3, 2025, which included investors and certain subsidiaries. On the closing date, Ton Strategy made big changes to its top management and Board of Directors. For instance, a new Executive Chairman was hired. 

The company entered into a long-term agreement with a group led by the new Executive Chairman. The chairman, through Kingsway Capital Limited’s partners and affiliates, acquired approximately 19.99% of Ton Strategy’s total common stock and voting power.

The letter from Nasdaq states that Ton Strategy should have obtained shareholder approval before selling shares in the PIPE financing, which would have led to a change in control. However, Ton Strategy said it believed, based on outside adviser guidance at the time, that it had complied with the rule.

While Nasdaq did not recommend a delisting, the notice places the publicly listed firm under closer scrutiny. But the company reported that the Nasdaq notice does not have an immediate effect on its continued listing on the exchange, provided it continues to meet other listing requirements.  

TON Strategy has positioned itself as a long-term treasury builder for Toncoin, currently holding more than 217 million tokens. The company has 45 days to present a plan to regain compliance.

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