- Toncoin experienced an 8% price surge after false reports claimed the TON Foundation raised $400M, but the foundation quickly clarified the misinformation.
- The TON Foundation clarified that over $400 million worth of Toncoin is held by top U.S. venture firms, not through a new fundraising round.
- Amidst Toncoin’s controversy, Telegram’s Pavel Durov faces ongoing legal challenges in France related to his platform’s moderation practices.
Toncoin (TON) had firsthand experience of this when untrue reports that the TON Foundation had raised $400 million sent prices surging 8% before an official statement put the record straight.
The news spread like wildfire on a number of crypto news websites, prompting a wave of investor frenzy. The TON Foundation was prompt to deny the accusations through its official X (formerly Twitter) account, clarifying that the reports were not accurate. Instead of a straightforward fundraising, the foundation clarified that over $400 million worth of Toncoin is held by leading U.S.-based venture capital firms.
“Over $400 million in Toncoin is held by some of the world’s most forward-thinking US-based venture capital firms,” the TON Foundation stated.
While this is still a strong signal of institutional confidence, it is vastly different from a fresh injection of capital into the project.
Toncoin Falls After Misinformation Controversy
After clarification from the TON Foundation, crypto communities had a split response. Most investors and traders commended the team for moving quickly against misinformation, but a few remained hopeful for Toncoin’s long-term prospects, with some asserting that having institutional backing alone constituted a vote of confidence for the ecosystem.
However, there were some skeptical about where the rumor started. Some users asked if the misinformation was deliberately distributed with a view to manipulating TON’s price. Some people thought that whoever gained from the short-term price pump might have waited before rectifying the false information.
One user insinuated the news was planted to “hype things up,” while another said that holding off on the correction permitted early movers to profit from the spike before the price stabilized at normal levels.
Currently, the price of Toncoin is $ 3.61 with a 24-hour trading volume of $ 410.00M and a market capitalization of $ 8.86B. The TON price moved 0.47% in the past 24 hours.
Toncoin Turmoil as Durov Faces Legal Battle
The controversy surrounding Toncoin comes at a time when Telegram founder Pavel Durov is dealing with his legal challenges.
Durov was arrested in August 2024 when he landed in Paris, charged by French authorities with not properly regulating criminal activity on Telegram. Critics have claimed that the messaging app has turned into a sanctuary for illegal activity, including fraud, drug dealing, and exploitation of children. Telegram, however, has rejected these claims, saying that it has rigorous moderation practices.
Recently, Durov has been given permission to return home to Dubai, but his case remains pending. On his Telegram channel, he released a statement, expressing gratitude for his release but at the same time asserting that his legal battle is not finished.
I am grateful to French judges for having given me an opportunity to return and to my attorneys for having assured me that Telegram not only met but exceeded its legal obligations as much as moderation and preventing crimes are concerned, Durov stated.
Since his arrest, Telegram has made some core changes for enhancing security on its platform. The business has collaborated with the Internet Watch Foundation for combating child exploitation content and has started sharing IP addresses and phone numbers of abusers with law authorities on legitimate legal requests.
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