- Durov says Telegram and xAI agree in principle; Musk denies a signed deal.
- Toncoin rises to $3.65 on the news, then retreats to $3.26.
- Telegram issues $1.7 billion in convertible bonds to refinance debt.
Tech and crypto markets spent two tense days parsing an apparent alliance between Telegram and Elon Musk’s artificial-intelligence venture xAI. A single post from Telegram chief Pavel Durov sent the price of Toncoin up 21 percent—only to see that gain evaporate when Musk countered that no binding contract exists. Below is a chronological analysis of the episode, the token’s price path, and the wider funding and regulatory context.
The Telegram–xAI partnership unveiled
Late on Wednesday, Durov told his 900-million-plus X followers that Telegram and xAI had agreed “in principle” to embed the Grok chatbot across all Telegram apps for one year. The post cited $300 million in cash and equity flowing from xAI to Telegram and granted Telegram 50 percent of any subscription revenue generated inside the messaging ecosystem. Market desks treated the statement as near-final: trading volume on leading exchanges doubled within the hour.
Toncoin price reacts to announcement
Spot quotes jumped from $3.01 to $3.65 in roughly three hours, adding more than $1 billion in fully diluted market value. The move eclipsed the 24 percent rally logged in February when French authorities allowed Durov to leave the EU after a six-week travel ban. Aggregate open interest in perpetual futures rose to $220 million, the highest since November 2023.
Musk’s public denial and clarification
At 02:17 UTC on Thursday, Musk replied to a user asking about the tie-up: “No deal has been signed.” The five-word retort erased nearly half of the prior session’s price spike within ten minutes. Durov responded that the terms were settled “in principle” and that only paperwork remained. Yet by the New-York open, Toncoin had slipped to $3.26, a decline of 11 percent from the intraday top.
Investor sentiment and social-media backlash
Telegram loyalists expressed frustration. “Agreed in principle doesn’t mean anything,” one post read, garnering 18 000 likes. Another predicted the incident would “blow the deal” entirely. Funding rates on futures flipped negative for the first time in a month, indicating that short sellers briefly paid a premium to borrow the token.
Strategic value of Toncoin in The Open Network
Toncoin runs on The Open Network (TON), a layer-1 blockchain developed independently of Telegram after the U.S. SEC halted the original Gram token sale in 2020. Despite legal separation, the chain integrates seamlessly with Telegram’s user interface, letting accounts pay for mini-apps, ads, and in-chat games. Wednesday’s news mattered because a native Grok rollout promised to expose the chain to Telegram’s one-billion-user addressable base, potentially boosting on-chain fee revenue.
Telegram adds $1.7 billion via convertible bonds
Hours after the xAI headlines, Durov revealed that Telegram had placed $1.7 billion in five-year convertible bonds with institutional buyers. About $955 million is earmarked to refinance notes due in 2026; the remainder funds infrastructure and feature expansion. Bloomberg reported that the coupon sits in the mid-single-digit range, underscoring still-robust appetite for the private company’s debt despite last year’s negative cash flow.
Ongoing legal and regulatory pressures
Telegram remains under scrutiny for content moderation. French prosecutors accuse the platform of insufficient action against child-abuse media and narcotics commerce—allegations Durov rejects. The firm argues that its encrypted architecture and existing cooperation with law enforcement meet legal standards. These probes add uncertainty for token holders, as any forced changes to platform policy could reshape blockchain integration plans.
Market outlook for Toncoin through 2025
Derivatives markets now imply ±40 percent annualized volatility over the next three months, roughly double that of Bitcoin. Analysts at Kaiko note that exchange address concentration remains moderate: the top ten wallets hold 17 percent of circulating supply, reducing—but not eliminating—tail-risk scenarios. Should a final Telegram-xAI agreement materialize, daily active wallets on TON could surpass 4 million, based on the network’s historical user-conversion ratio of 0.4 percent. Absent that catalyst, price action will likely hinge on Telegram’s ability to convert its bond proceeds into revenue-generating features before the first coupon comes due.
Conclusion
Price swings this week highlighted how quickly sentiment can turn when verbal agreements lack formal signatures. A definitive contract with xAI would grant Telegram added revenue streams and could drive sustained on-chain activity for Toncoin. Until that paperwork is complete, the token’s trajectory will track both Telegram’s financing progress and regulators’ next moves. Investors weighing exposure should watch for documented deal terms, product timelines, and any updates on legal inquiries.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
image source
