Toncoin has fallen almost 16% in the last seven days. Crypto VCs are not afraid. “The fundamental case for TON is compelling,” an investor told News.
Toncoin may be down, but some crypto venture capitalists say they're not bailing on the world's tenth-largest cryptocurrency.
After French authorities recently arrested the CEO of popular messaging app Telegram, Pavel Durov, the price of Token, which has historical ties to the app, has fallen.
Over the past seven days, the price of one token has fallen by nearly 15% and now trades around $5.58.
However, Alex Felix, managing partner at CoinFund, doesn't regret his venture firm's investment in TON, the ticker for TonCoin.
“The basic case for TON is compelling,” he said News.
All press, good press
Another VC who has invested in TonCoin, Rise Labs founder and CEO Matthew Graham is similarly optimistic.
“Although we agree that the news of Pavel's arrest is very important, this week, TON accounts crossed the 50 million mark for the first time,” he said. NewsTON refers to the number of individual addresses on the blockchain.
And Joven Wu, head of business development at Rise Labs, said recently Blog post Durov's arrest may have a silver lining for cryptocurrency.
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“The controversy raised TON's profile significantly, attracting more users and developers to the ecosystem,” he wrote.
TON is not Telegram
Who are the three crypto VCs? News Telegram, the app, has warned against being associated with Toncoin, a cryptocurrency that is nominally separate from Telegram. solution with the US Securities and Exchange Commission in 2020.
“It's important to note that there are growing concerns about regional compliance issues, such as content moderation, affecting traditional technology companies rather than the crypto platform itself,” Felix said of Durov's arrest.
And Shauli Rejwan, managing partner at Masterkey VC and an early investor in Toncoin, believes that despite the news of Durov's arrest, the token could one day completely distance itself from its association with Telegram.
“History shows that strong projects can outlast their initial associations, and TON, with its current trajectory, is well positioned to do so,” he said. News.
A French prosecutor said Wednesday that Durov was under official investigation and would not be allowed to leave the country. BBC. He is required to report to police twice a week and his bail is set at $5.5 million.
Crypto market movers
Bitcoin is up 0.8% in the last 24 hours, trading at $59,676.Ethereum is also up 3.8%, now at $2,553.
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Ben Weiss is the Dubai correspondent News. Got a tip? Email him [email protected].
