Pantera, one of the largest crypto venture capital firms, reportedly invested over $100m in Telegram-linked Toncoin earlier this year, marking it as its largest investment to date.
Bloomberg reported on Thursday that Pantera bought Toncoin at a 40% discount from the market price. Considering the average price at $6.32 in May, when the deal became public, the investment remains profitable.
However, Pantera must hold onto its Toncoin investment for one year before it can start selling off portions of it over several years.
How is Ton associated with Telegram? The messaging service integrated Toncoin’s TON blockchain into its app, allowing users to access blockchain features. As a result, users can can buy, sell and trade Toncoin directly within Telegram.
Moreover, a wallet integration enables users to conduct transactions, tip others and engage in additional blockchain activities all within the app.
Pantera Touted Toncoin’s Potential to Tap Into Telegram’s Privacy-Driven Virality for Mass Adoption
In May, Ryan Barney, a partner at Pantera, explained that the firm invested in Toncoin because they believe “TON has the capacity to introduce crypto to the masses because it is used extensively within the Telegram network.”
He added that, by utilizing Telegram’s vast user base, the team envisions TON potentially emerging as one of the largest crypto networks.
Barney also pointed out that Telegram “doesn’t sell user data and its virality is truly due to the promise of privacy.”
Among over a dozen other firms have invested in Toncoin, including Animoca Brands and Mirana Ventures.
French Authorities Arrest Telegram CEO Durov on Multiple Charges
However, Telegram is under considerable legal examination in France. French authorities have arrested CEO, Pavel Durov, charging him with multiple offenses including complicity in child pornography, trafficking, money laundering and organized crime. Additionally, Durov faces charges for not responding to legal requests and for failing to register cryptography services.
Durov has been granted release upon posting a €5 million bail and is prohibited from exiting France.
Following Durov’s arrest on Aug. 24, Toncoin’s value plummeted by about 20%. Still, it later recouped some losses. According to DefiLlama, the total value locked in TON has decreased to $33.2m, a decline from the $714m it was in July.
Investors in Toncoin Concerned Over Telegram’s Future
Venture capitalists who invested in Toncoin are now assessing the impact of France’s legal actions against Durov on Telegram’s user base, according to Bloomberg. They had committed to holding their shares for at least one year.
Durov’s arrest has raised concerns about the future. His leadership has been vital in guiding Telegram and integrating Toncoin into its ecosystem. The legal challenges he now faces could disrupt Telegram’s operations, potentially impacting Toncoin’s use and adoption.
Looking ahead, opinions are divided. Some argue that blockchain projects like Toncoin, with their decentralized nature, may not rely as heavily on one person’s involvement compared to traditional businesses. If the TON community and its supporters continue their efforts, the project could weather this storm. However, the risk regulatory actions or shifts in Telegram’s strategy remains a concern.
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