Toncoin (TON) Plummets 5.6% After Elon Musk Denies xAI/Telegram Partnership Rumors

The Telegram-affiliated cryptocurrency Toncoin (TON) experienced a sharp decline following Elon Musk’s public denial of a reported partnership between xAI’s Grok chatbot and the messaging platform. The token dropped 5.6% from $3.60 to $3.40 after Musk tweeted "No deal has been signed" late Wednesday, erasing part of its earlier 14% rally that was fueled by partnership speculation.

The market reaction was immediate, with significant sell orders appearing across exchanges. This volatility demonstrates the crypto market’s heightened sensitivity to unconfirmed tech collaborations, especially when involving high-profile industry figures like Musk and Telegram’s Pavel Durov. The incident serves as a reminder of how quickly prices can swing based on celebrity endorsements or denials in the digital asset space.