A seismic wave rippled through the crypto world as Elon Musk doused hopes of a finalized partnership between his artificial intelligence venture, xAI, and the messaging powerhouse, Telegram. Despite earlier buzz about a definitive agreement, both sides appear to be playing a game of wait-and-see. As Asia’s markets wake up, investors are keenly scanning the horizon for any signs of clarity.
Telegram and xAI: The Plot Thickens
Telegram founder Pavel Durov had whipped up excitement by announcing a deal with xAI that was touted to integrate Musk’s AI technology into Telegram’s ecosystem, promising a lucrative revenue-sharing model. However, Musk swiftly countered these claims on his platform, X, stating that no official deal had been inked. This back-and-forth has left many scratching their heads, especially since Durov maintains there’s an “agreement in principle.” As explored in our recent coverage of Dogecoin’s resilience amid Musk’s Tesla rumors, Musk’s statements often have a significant impact on market sentiment.
The token associated with Telegram, TON, has experienced a rollercoaster ride amid these mixed signals. Following the initial fanfare, TON spiked to $3.68 before Musk’s denial sent it back down to $3.30. Yet, it’s holding strong, still up 11% for the day. Crypto traders are left wondering if this support level will hold or if further volatility is in the cards.
The Market’s Reaction
Crypto markets are no strangers to drama, and the TON saga is the latest act in a long-running play. “The reaction to Musk’s tweet was immediate,” noted crypto analyst Jamie Liu. “It appears investors are still hopeful, or perhaps speculative, about the potential partnership, which explains why TON hasn’t cratered.” Liu’s observation underscores a prevailing sentiment of cautious optimism—or perhaps wishful thinking—as market participants await more concrete developments.
Elsewhere in the crypto landscape, major players like Bitcoin and Ether showed muted reactions to the unfolding drama. Bitcoin dipped slightly by 1.2% to $107,800, while Ether held steady above $2,700. Both assets seemed to shrug off unrelated geopolitical tensions, including a U.S. court’s decision to block former President Trump’s sweeping tariffs.
Broader Implications
The nuances of the Telegram-xAI situation highlight a broader theme in the crypto and tech industries: the intricate dance between decentralization and practicality. Over in Vancouver, at the Web Summit, Bluesky CEO Jay Graber offered a different perspective on blockchain’s role. Despite her background in Web3, Graber argued that blockchain’s permanence and resource demands make it ill-suited for social media—a sentiment that resonates with the ongoing discussions about blockchain’s utility and limitations. For a deeper dive into the intersection of AI and blockchain, see our coverage of the AI-powered court system in crypto.
“Blockchain will probably find its place somewhere in the world of technology,” Graber remarked, “but Bluesky is not on a blockchain because we’re just making the best choices for our users.” Her words echo through the current discourse surrounding Telegram and xAI, raising questions about whether their envisioned partnership could effectively balance innovation with user-centric design.
The Road Ahead
As the dust settles, the market’s attention remains firmly fixated on Telegram and xAI. Will they reach an agreement that satisfies both parties and, perhaps more importantly, the market? Or will the deal remain in a perpetual state of ‘coming soon’? Only time will tell.
For now, crypto enthusiasts and investors alike must navigate the choppy waters of speculation, ever mindful of the broader market forces at play. Whether TON will soar or stumble in the coming weeks remains an open question—one that will undoubtedly keep market watchers and analysts on their toes.
Source
This article is based on: Asia Morning Briefing: All Eyes on TON as Elon Musk Pours Cold Water on xAI Deal Talks
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
