- TON surged nearly 12% after reports of a Telegram-xAI partnership and a $1.5B fundraising plan.
- The gains quickly reversed after Elon Musk and Pavel Durov clarified that no formal deal had been signed.
The TON token experienced a dramatic price swing this week, rising nearly 12% before falling sharply, after conflicting signals emerged about a rumored partnership between Telegram and Elon Musk’s artificial intelligence startup, xAI.
The initial rally began when reports surfaced that Telegram was seeking to raise $1.5 billion through a bond sale, reportedly drawing interest from heavyweight investors like BlackRock and Citadel. Investor enthusiasm surged further when Telegram CEO Pavel Durov announced an apparent partnership with xAI, suggesting that Grok, xAI’s chatbot, would soon be integrated into Telegram.
Also read: Sui Network Surges to Record $14.8B DEX Volume in May 2025 — Can SUI Price Break the $3.87 Resistance?
Durov’s statement included bold claims: a $300 million cash payment, an equity stake in xAI, and shared subscription revenues, all as part of a one-year deal. The market responded swiftly, with TON surging from around $3.22 to a peak of $3.60 in mere hours.
Adding fuel to the optimism, Telegram also reported strong growth metrics, boasting 1 billion active users and solid financials heading into the latter half of 2024.
However, the euphoria was short-lived. Elon Musk quickly took to X (formerly Twitter) to refute the claims, stating bluntly: “No deal has been signed.” His message sent shockwaves through the market, leading to an immediate reversal in TON’s price trajectory. The token tumbled to as low as $3.28 within hours.
In response, Durov acknowledged Musk’s statement, clarifying that the partnership had only been “agreed in principle” and that no formal, legally binding contract was yet in place.
The rollercoaster ride for TON underscores the volatility of crypto markets and their hypersensitivity to headlines—especially when high-profile figures like Elon Musk are involved. As of today, TON is trading at $3.32, still up 11.70% over the last 24 hours, but well off its earlier highs.
While the potential for a partnership with xAI remains promising, investors may need to wait for ink to hit paper before the next rally becomes reality.