Toncoin (TON), the cryptocurrency linked to Telegram’s The Open Network (TON), dropped 7% on Thursday, falling from a high of $3.65 to $3.26, following a public dispute between Telegram CEO Pavel Durov and Elon Musk over a reported $300 million partnership between Telegram and Musk’s AI company, xAI. The sell-off erased much of the token’s 21% surge on Wednesday, which was fueled by Durov’s announcement of a deal to integrate xAI’s Grok chatbot into Telegram’s platform.
Durov’s May 28 post on X claimed that he and Musk had agreed to a one-year partnership, stating,
“This summer, Telegram users will gain access to the best AI technology on the market.”
He outlined a $300 million cash-and-equity deal, with Telegram set to receive 50% of revenue from xAI subscriptions sold through its app. The announcement sparked excitement, driving TON’s price to a peak of $3.65. However, Musk quickly countered on X, stating,
“No deal has been signed,” casting doubt on the agreement’s status. Durov responded, clarifying that while the deal was agreed “in principle,” legal formalities were still pending.
Despite the dispute, the potential partnership could still reshape Telegram’s ecosystem, which boasts over one billion users. If finalized, integrating Grok could introduce AI-driven features like smart text editing and group chat moderation, positioning Telegram to compete with platforms leveraging advanced AI, such as those using OpenAI’s ChatGPT. Durov emphasized that xAI would only access data explicitly shared with Grok, addressing privacy concerns.
Toncoin, used for transactions and governance on the TON blockchain, remains 59% below its June 2024 peak of $8.25. The volatility underscores the market’s sensitivity to high-profile announcements and retractions, particularly involving figures like Musk and Durov. As negotiations continue, investors are left awaiting confirmation of the deal, with TON’s price likely to face further swings.
