Toncoin (TON) slumps as Elon Musk denies Telegram-xAI deal

Toncoin has been among the most-watched tokens this week.

The digital asset flourished on Wednesday following two bullish announcements tied to Telegram.

First and foremost, what’s the connection?

Toncoin is the native token of The Open Network, which is Telegram’s blockchain infrastructure.

News about BlackRock, Citadel, and Mubadala backing Telegram’s $1.5 billion bond issuance elevated Toncoin prices from May 28 lows of $2.9831.

Telegram CEO Pavel Durov supercharged the rally after confirming collaborating with Elon Musk’s xAI to bring Grok to the leading messaging platform.

The news bolstered optimism, promising AI integration into all Telegram features and financial support.

Durov stated that Musk’s artificial intelligence initiative committed $300 million and had agreed to split half of the subscription revenue from xAI features sold through Telegram.

The developments pushed TON to intraday highs of $3.6784 – a 23% uptick from a 24-hour low.

The significant rallies reflected investor and trader excitement, with many speculating about the crypto’s potential future with Telegram integrating artificial intelligence for over 1 billion users.

Indeed, Grok could have boosted Telegram activity and growth by attracting key collaborations. Such developments could propel Toncoin’s adoption.

Musk denies signing any deal with Durov.

Nevertheless, the excitement was short-lived as Elon Musk disagreed with Durov’s claims.