Toncoin (TON), the native token of the Telegram-adjacent TON blockchain, experienced a significant increase on Thursday after The Open Network Foundation announced that several prominent venture capital firms have invested $400 million in the token.
Noteworthy investors in this round include industry giants such as Sequoia Capital, Ribbit, Benchmark, and Kingsway, as detailed in a press release shared with CoinDesk. The investment round also saw participation from Vy Capital, Draper Associates, Libertus Capital, CoinFund, Hypersphere, SkyBridge, and Karatage.
A spokesperson from Telegram clarified, “These venture capital firms hold over $400 million worth of Toncoin, the native cryptocurrency of the TON Blockchain. This is not a fundraising round; rather, these VCs are betting on the future success and utility of the TON Blockchain, its expanding ecosystem, and its potential to deliver real-world utility for crypto holdings, particularly within the Telegram platform.”
Following the announcement, TON’s price surged by over 8%, reaching above $3.8, before slightly retreating. As of now, the token shows a 2% increase over the past 24 hours.
The TON network was initially developed by the messaging platform Telegram but has continued as an independent operation since 2020, due to regulatory challenges after the company settled a lawsuit with the U.S. Securities and Exchange Commission (SEC).
Adding to the drama, Telegram CEO Pavel Durov was arrested in France this past August amidst a complaint regarding Telegram’s moderation practices and its cooperation with law enforcement. Fortunately, Durov regained access to his passport from authorities earlier this month, prompting a surge of 20% in the TON token’s price on the news.
Furthermore, digital asset investment firm Pantera Capital disclosed in May that it made its “largest investment ever” in TON, although the specific value of the investment remains undisclosed. However, it is worth noting that the token’s price has decreased by 54% since peaking above $8 in June.
