Musk made this revelation following claims by Telegram CEO Pavel Durov that he had inked a partnership with xAI to incorporate its Grok chatbot into the social media’s messaging platform.
How Did Toncoin Find Itself in the Mix?
With Toncoin being the native cryptocurrency of The Open Network (TON), which Telegram uses as its exclusive blockchain infrastructure, the emerging contradiction sent shock waves into the token.
Interestingly, after Durov announced his agreement with Musk, Toncoin enjoyed a rollercoaster ride after surging by 21%.
On May 28, Durov took to X, formerly Twitter, and stated, “This summer, Telegram users will gain access to the best AI technology on the market. Elon Musk and I have agreed to a 1-year partnership to bring xAI’s Grok to our billion+ users and integrate it across all Telegram apps.”
He added that this partnership was ideal because it could enhance Telegram’s financial position with xAI already committing $300 million in cash towards this endeavor. Furthermore, xAI would surrender 50% of the revenue generated from subscriptions sold through the social media platform.
Nevertheless, a day later, Musk came out guns blazing that this development was null and void.
Musk noted, “No deal has been signed.”
Therefore,this post by Musk on X was the epitome of Toncoin’s price decline.
The proposed deal coincides with Durov’s announcement on Telegram that the company had raised $1.7 billion via convertible bonds, using part of the funds to retire $955 million in debt due in 2026, per a Bloomberg report.
Earlier this year, Toncoin surged by 15% after Durov was cleared to return to Dubai following his August arrest in France on allegations that Telegram enabled various criminal activities, such as drug trafficking and child sexual abuse.
Why Did Telegram Choose The Open Network?
Telegram choseThe Open Network (TON) as its exclusive blockchain to boost scalability, security, and user experience for its 950 million monthly active users. These are some of the factors that triggered this bond:
1. Seamless Integration and User Experience
Central to this partnership is the adoption of TON Connect, a wallet protocol that enables effortless interaction between Telegram Mini Apps and blockchain wallets.
This integration allows users to engage in blockchain transactions directly within the Telegram app, streamlining activities such as payments, gaming, and decentralized finance (DeFi) services.
2. Scalability and Performance
TON's architecture employs dynamic sharding and asynchronous smart contracts, facilitating high transaction throughput and low latency.
This design supports millions of transactions per second, ensuring that Telegram's blockchain-based services remain fast and reliable even under heavy load.
3. Enhanced Security Measures
By consolidating blockchain activities within the TON ecosystem, Telegram aims to mitigate security risks associated with third-party integrations.
This move addresses concerns over phishing attacks and scams, providing a more secure environment for users engaging with blockchain features.
4. Economic Ecosystem and Developer Incentives
Toncoin is now the sole digital currency used for transactions within Telegram, including payments for premium services, advertisements, and rewards for developers.
This unified economic model incentivizes developers to build on the TON platform, fostering a robust ecosystem of decentralized applications.
Telegram's exclusive partnership with TON aligns with its vision to provide a scalable, secure, and user-friendly blockchain experience, positioning itself at the forefront of integrating decentralized technologies into mainstream applications.
Conclusion
Therefore, the deep connection between Toncoin and Telegram cannot be washed away, as evidenced by the price fluctuations that usually emerge whenever there is a major development.
This is because Toncoin’s identity, user base, and ecosystem remain closely linked to Telegram, making their deep connection impossible to fully erase.
