Ton coin price experienced excitement within hours after a Telegram announced a $1.5 billion 5 year-bond. The cryptocurrency has been struggling to gain momentum in the second half of May but the bond announcement triggered renewed interest.
Ton coin price surged from the day’s low at $2.97 on Wednesday morning, to as high as $3.68 at press time. This meant it was up by over 22% in the last 24 hours, which was its highest daily gain observed since late March. This rally also made Toncoin the biggest gainer among the top 50 coins on Wednesday.
Toncoin price action/ source: TradingView
The surge in the last 24 hours was a clear sign of investor excitement, marked by a sizable uptick in the RSI from below the 50% level. This lest Ton coin price uptick reignited bullish optimism considering that he cryptocurrency previously struggled with low investor appeal.
Toncoin price has been sliding for more than 2 weeks despite the recent market excitement during the same phase, which saw BTC soar to new highs.
Why the $1.5 Billion Telegram Bond is Reigniting Investor Appeal
Telegram previously found itself facing negative publicity largely due to content moderation issues after heavy regulatory scrutiny. However, there is one major issue that had not received much airtime.
The network had been struggling with an outstanding debt that went as far back as 2021. Reports revealed that the $1.5 billion that Telegram is planning to raise through its bond issuance will be used to offset the 2021 debt.
Source: X
The bond issuance was a positive move for the company, highlighting its intensions to honor debtors. The list of investors that lined up to participate in the bond was more interesting.
Major finance industry players such as Citadel, and BlackRock among others expressed interest in the Telegram bond. This was a clear sign of investor confidence and it may have boosted the social network’s outlook. This may have contributed greatly in the bullish sentiment observed in the last 24 hours.
Analysts highlighted the move as a sign that Telegram was working towards boosting its financial position and abating the previously looming cloud of investor anxiety. But is the move big enough to encourage longer term growth?
Can Ton coin Tap into Long Term Growth?
As previously noted, Telegram founder Pavel Durov previously found himself high profile legal woes over Telegram. He was even detailed in France and accused of failing to implement censorship on the social network.
Things also took a turn for the worse when the network was also sued due to security breaches. However, Telegram has been working towards fixing its reputation. However, Durov also hit back against the authorities, criticizing them for overreach.
Durov recently noted that he was committed to making sure that Telegram would continue defending people’s rights and remain neutral.
Source: X
But what could be the implication for Ton coin? The demand surge for TON in the last 24 hours was clear sign of investor confidence. For context, daily spot inflows surged by $8.85 million at the time of observation, marking the highest spot inflows observed since November 2024.
Toncoin spot flows/ source: Coinglass
The massive spike in spot flows was also accompanied by renewed interest in the derivatives segment. The cryptocurrency clocked $857 million in daily volume, after a 626.8% gain in the last 24 hours.
Open interest surged to 327 million in the last 24 hours after a 55% uptick. This was a sign of renewed long term optimism. This is because Ton coin was still trading at a considerable discount. For example, it traded at a 48% discount from its December 2024 top and about 56% from its ATH.
Significant Developments
There were also a few other noteworthy developments pertaining to Telegram. For example, Telegram recently announced that it hired Nicolas Plecas as its new Vice President of its payments division.
Source: X
A noteworthy move because Plecas previously worked at global card payments giant Visa, where he helped develop the company’s global crypto strategy.
In addition, Telegram just announced a collaboration with xAI to bring Grok to Telegram users. Telegram will reportedly receive cash and equity to the tune of $300 million as part of the deal and will reportedly receive 50% of AI sales generated through Grok.
Source: X
