Telegram Partners with Elon Musk's AI Company, Boosting TONcoin Price
Toncoin Surges Following Alleged Telegram Musk xAI Agreement, $1.5 Billion Bond Offering Announcement
Amid reports that messaging platform Telegram is seeking to raise $1.5 billion through a bond issuance, its native cryptocurrency, Toncoin, soared nearly 12% on Wednesday. The surge came as Telegram announced a strategic partnership with Elon Musk's xAI, while the exact details of the deal are still being finalized.
Telegram, whose profits surged to $540 million on $1.4 billion in revenue in 2024, according to sources familiar with the matter, is set to integrate the Grok chatbot, a product of xAI, into its platform. The one-year agreement involves a cash and equity investment of $300 million from xAI to Telegram. Under the terms of the deal, Telegram will earn 50% of the revenue from xAI subscriptions purchased through the messaging app.
The partnership represents a significant expansion for Grok, potentially making it available to all users on Telegram. Following the announcement, Toncoin's price jumped by about 16-18%, but there was a subsequent correction with an over 7% drop at one point. Despite the market volatility, Toncoin's value has overall increased, reaching around $3.35 according to CoinGecko data.
However, the deal's status became unclear, as Elon Musk later clarified that no formal agreement had been signed, with Telegram founder Pavel Durov confirming that the necessary formalities were pending. Although the legal situation surrounding Telegram, which is currently facing criminal charges in France for alleged illegal activities, remains uncertain, the company's fortunes continue to rise.
Telegram created The Open Network (TON) in 2018, but distanced itself from the network in 2020 as it faced regulatory scrutiny. However, the app later began to engage with TON again, hosting the TON Wallet App and tap-to-earn games within its application. The latter initiative gained widespread recognition last year with the success of viral games like Catizen and Hamster Kombat, which amassed hundreds of millions of players on Telegram.
- In addition to Toncoin's price increase due to the Telegram-xAI partnership, other cryptocurrencies such as Bitcoin and Ethereum also showed a slight upward trend in the crypto market.
- The strategic partnership between Telegram and Elon Musk's xAI company could potentially lead to the integration of various Initial Coin Offerings (ICOs) and airdrops within the Telegram platform, as xAI specializes in developing blockchain technologies.
- The announcement of the partnership between Telegram and xAI comes as they are also exploring opportunities for xAI to conduct crypto-business directly on the Telegram platform, utilizing the TON cryptocurrency network.
- Given that Elon Musk's xAI is actively investing in technology-focused businesses, some analysts predict that this partnership could pave the way for further collaborations between Telegram, Ethereum, and other major players in the cryptocurrency and technology industries.
- As the price of Toncoin, the native cryptocurrency of The Open Network, fluctuates within the market, it is essential for crypto investors to keep a wallet equipped with multiple cryptocurrencies, ensuring flexibility in case of volatility and potential investment opportunities.
- Despite some competition within the messaging app market, Telegram's continuous foray into the world of finance, crypto, and technology has solidified its position as a pioneer in merging various industries and offering innovative features to its users.
