Toncoin (TON) has faced a turbulent 24 hours, plummeting by more than 7% as the buzz surrounding a potential partnership between Telegram and Elon Musk’s xAI fizzled out. The precipitous drop, from $3.319 to just under the $3 threshold, comes on the heels of Musk’s denial of a finalized deal, which had previously sent TON soaring to a high of $3.65. This back-and-forth has left investors and analysts alike questioning the immediate future of the digital asset.
A Rollercoaster of Speculation and Denial
Initial excitement around a potential collaboration between Telegram and xAI seemed to promise a significant uplift for TON. Telegram’s CEO, Pavel Durov, had hinted at the partnership, which many believed could integrate TON with Telegram’s vast user base of 700 million. The market responded enthusiastically, only to be sent into a nosedive following Musk’s statement that the deal was not yet concrete. “Markets hate uncertainty, and this was a textbook case,” remarked crypto analyst Sarah Jenkins. This situation mirrors recent events where Dogecoin remained stable despite Musk’s denial of his exit from Tesla.
Despite the market’s reaction, Durov has maintained that the agreement is “agreed in principle,” with only formalities left to iron out. This assertion, however, has done little to assuage the immediate impact on TON’s price, which now sits 17% lower than last week’s peak. “Investors are wary of promises without signatures,” Jenkins added.
Technical Insights and Market Dynamics
The sell-off saw trading volumes surge dramatically, hitting over 10.6 million in a single hour—almost three times the average. This rapid movement wasn’t entirely negative, as buyers re-entered the market at the $3.00 level, helping TON recover slightly to $3.086. This V-shaped rebound hints at underlying support, with $3.22 emerging as a new resistance level.
Interestingly, TON’s perpetual futures open interest has climbed by 33% to $190 million, its highest since February. This uptick suggests that traders are gearing up for further volatility, a sentiment echoed by crypto analyst Ali Martinez, who noted significant wallet concentration around the $3.24 mark. “It’s a critical juncture,” Martinez pointed out, “and any movement past this range could set the tone for what’s next.”
Context and Future Implications
Amidst this market drama, Telegram has successfully raised $1.7 billion through convertible bonds, with plans to repurchase existing bonds and allocate $745 million toward growth initiatives. This financial maneuvering underscores Telegram’s ongoing commitment to innovation and platform expansion. The potential for TON to be integrated as an in-app payment method remains a tantalizing prospect, offering a unique entry point into mainstream crypto adoption.
However, the broader implications of the Telegram-xAI saga raise questions about the sustainability of speculative-driven rallies. As the crypto market matures, the need for concrete developments over mere speculation becomes increasingly apparent. “The market’s reaction is a stark reminder of the volatility inherent in speculative news,” said Jenkins. This sentiment echoes the recent backlash against speculative reporting, as highlighted in Musk’s criticism of the WSJ.
Looking ahead, the crypto community will be watching closely for any concrete updates regarding the Telegram-xAI partnership. Will the “agreed in principle” deal materialize into a signed agreement? And if so, what impact will it have on TON’s trajectory? For now, traders and investors remain on high alert, keenly observing every ripple in this unfolding narrative.
Source
This article is based on: TON Falls 7% as Sell-Off Tied to Musk’s Dispute of Telegram, xAI Partnership Continues
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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.
