Major Crypto Investors Back TON with $400 Million
The Open Network (TON), the blockchain powering payments on the popular messaging platform Telegram, has successfully raised $400 million from prominent venture capital firms specializing in cryptocurrency investments. The funding round, announced by the TON Foundation on Thursday, attracted heavyweights such as Sequoia Capital, Ribbit Capital, Benchmark Ventures, Kingsway Capital, and Draper Associates.
Toncoin Gains Momentum Following Funding Round
TON’s partnership with Telegram enables over 1 billion users to make payments for games, advertisements, and other decentralized applications using its native cryptocurrency, Toncoin. The announcement of the funding round triggered a 6% increase in Toncoin’s value.
Investors See Blockchain’s Disruptive Potential
“I’ve been a long-time believer in the potential of blockchain to disrupt traditional industries and systems,” said Tim Draper, founder of Draper Associates, one of the participating investors. “TON’s technology is highly impressive, and its integration with Telegram provides it with a distribution network unmatched by any other blockchain.”
Token-Based Investments Over Traditional Equity
Unlike traditional funding rounds, investors received token-based investments rather than equity, a TON spokesperson told Fortune. “These VCs are betting on the future success and utility of the TON blockchain, its expanding ecosystem, and its potential to bring real-world applications to crypto, especially within Telegram,” the spokesperson explained.
Pavel Durov’s Legal Battle and Toncoin’s Market Reaction
The funding news coincides with a dramatic development involving Telegram’s founder and CEO, Pavel Durov. Earlier this week, Durov was allowed to return to Dubai after being previously detained in France amid an ongoing investigation into Telegram’s operations. Following his statement confirming his return, Toncoin’s value surged by 24%.
Durov had been prohibited from leaving France since August after being detained near Paris and charged with enabling criminal activities on Telegram. The investigation remains ongoing, and Durov is required to return to France by April 7.
Telegram’s Stance on Privacy and Legal Scrutiny
Telegram has long positioned itself as a messaging app that puts user security and privacy first. But after being arrested, Durov changed his mind after his unwillingness to provide the authorities with the data was questioned. The platform has been charged by French authorities with aiding the dissemination of content related to child sexual abuse, drug trafficking, fraud, and other illegal actions.
Durov Denies Allegations, Defends Telegram’s Policies
Telegram has denied these allegations, calling it “absurd” to hold Durov personally accountable for user activities on the platform. A Telegram spokesperson referred to Durov’s September statement, in which he asserted, “No innovator will ever build new tools if they know they can be personally held responsible for potential abuse of those tools.”
Durov has continuously insisted on his innocence while highlighting how Telegram has “exceeded its legal obligations” in stopping platform abuse. Notwithstanding the legal issues, TON’s most recent fundraising round demonstrates investor faith in the company’s ability to transform digital payments among Telegram’s enormous user base.
