Toncoin (TON) Drops 7% as Musk Denies xAI-Telegram Partnership Rumors

Toncoin (TON) fell over 7% to below $3 after Elon Musk refuted speculation about a formal collaboration between xAI and Telegram. The cryptocurrency had initially jumped to $3.65 following hints of a partnership from Telegram CEO Pavel Durov, but is now trading 17% below its recent high.

Market sentiment reversed sharply when Musk stated no agreement had been finalized, despite Durov’s later assertion of an ’in principle’ arrangement. This volatility underscores how crypto markets can react swiftly to unconfirmed tech industry rumors.

Telegram’s massive 700 million-user network continues to present long-term potential for TON, with in-app cryptocurrency payments still being implemented. Traders are now monitoring the $3.00-$3.22 price range for the next market movement indicators.