Toncoin (TON), the native cryptocurrency of the TON blockchain associated with Telegram, saw a sharp increase on Thursday after an announcement from The Open Network Foundation revealed that various venture capital firms have invested $400 million in the token.
Among the investors listed in a press release are notable firms like Sequoia Capital, Ribbit, Benchmark, and Kingsway, along with Vy Capital, Draper Associates, Libertus Capital, CoinFund, Hypersphere, SkyBridge, and Karatage.
A representative from the Ton Foundation shared, “These venture capital firms now hold over $400 million worth of Toncoin, the native cryptocurrency of the TON Blockchain. It’s crucial to clarify that this isn’t a fundraising round. Rather, these VCs are making strategic investments based on their belief in the future potential and utility of the TON Blockchain, its expanding ecosystem, and its ability to deliver real-world applications for cryptocurrency assets, particularly within Telegram.”
Following this news, TON’s price surged by more than 8% to surpass $3.8, although it later retraced some of the increases, showing a 2% rise over the previous 24 hours.
The TON network was initially developed by the messaging platform Telegram but has operated independently in light of regulatory issues that emerged after the company settled a lawsuit with the U.S. Securities and Exchange Commission (SEC) in 2020.
In August, Telegram’s CEO Pavel Durov faced arrest in France linked to a complaint regarding the platform’s moderation and cooperation with law enforcement. Durov regained his passport from authorities earlier this month, resulting in a 20% spike in TON’s value.
Investment firm Pantera Capital made headlines in May for reportedly undertaking its “largest investment ever” in TON, although the specifics of the investment were not disclosed. Since hitting its peak of over $8 in June, the token’s price has dropped by 54%.