- TON token surges following news about Telegram’s plans to raise $1.5 billion and an announcement from Telegram’s CEO regarding a partnership with Elon Musk’s xAI.
- However, the price later dropped quickly after both Elon Musk and Telegram’s CEO clarified that a formal agreement for the xAI deal had not yet been signed.
The price of TON experienced a notable swing recently, first increasing sharply on exciting news related to its associated platform, Telegram, and then pulling back just as quickly when part of that news was clarified.
The News Behind TON’s Price Volatility
The initial positive movement for TON’s price was sparked by reports surrounding Telegram’s business activities. News surfaced that Telegram is looking to raise $1.5 billion through corporate bonds, which are a form of debt investment. Several major investment firms, including BlackRock, Citadel, and Mubadala, were reported to be interested in this bond offering, signalling strong confidence from large financial players.
Adding to the excitement, Pavel Durov, the CEO of Telegram, made an announcement claiming that Telegram and Elon Musk’s AI company, xAI, had agreed to a partnership.
According to Durov’s initial statement, this deal would involve integrating xAI’s Grok AI chatbot into Telegram and sharing revenue from subscriptions sold through the platform. Interestingly, he even mentioned that Telegram would receive $300 million in cash and an ownership stake from xAI as part of this reported one-year partnership.
After the news broke, reports followed of Telegram’s strong financial performance in 2024 and its growth to 1 billion active users.
These combined positive reports fueled a surge in the price of TON, with the token gaining nearly 12% to 14% in value shortly after the announcements. However, the situation quickly changed.
Later on the same day, Elon Musk, the CEO of xAI, responded to Durov’s announcement with a short but impactful statement:
No deal has been signed.” This direct clarification from Musk immediately put downward pressure on TON’s price. The token saw a rapid drop, falling from around $3.60 to $3.28 shortly after Musk’s post.
Telegram’s Pavel Durov later posted his follow-up on X, confirming that Musk’s statement was accurate. Durov clarified that the deal had been “Agreed in principle, but formalities are pending.” This meant that while the two parties had discussed and generally agreed on the terms of a partnership, the final, legally binding contract had not yet been completed.
The rapid price increase and subsequent drop in TON demonstrate the market’s strong reaction to news, especially concerning potential major partnerships and fundraising for its associated platform.
While the prospect of integrating a major AI model like Grok and attracting significant investment is viewed positively, the market quickly adjusted once it was clarified that the partnership was not yet a finalised agreement. Today, TON is trading at $3.32, up 11.70% in the last 24 hours.