TONcoin Plunges 12% After Major Announcements, Raising Rally Doubts

Following Pavel Durov's speech at TOKEN2049, Toncoin (TON) experienced a sudden 12.5% drop in value, erasing $1.14 million in long positions. Despite announcements of Telegram's NFT integration and Tether's USDT debut on TON, the price plunge suggests a "buy the rumor, sell the news" scenario. Additionally, Tether plans to release various stablecoins on TON, with USDT initially capitalized at $10 million.

TONcoin Plummets 12% Despite Major Announcements, Raising Doubts Over Rally

Dubai, United Arab Emirates - Toncoin (TON), the native cryptocurrency of popular messaging app Telegram, has experienced a sharp decline of 12.5% in a matter of minutes, eroding its recent gains following a series of promising announcements.

The sudden drop, which saw TON's price plunge from $7.2 to $6.3 on major exchanges, has cast doubt over the sustainability of the altcoin's recent rally, which had seen its value increase by 141% since late February.

The sell-off occurred shortly after Telegram founder Pavel Durov delivered a keynote speech at the TOKEN2049 conference in Dubai, where he unveiled plans to integrate TON blockchain into the Telegram platform, enabling features such as NFT trading, tipping, and improved sticker and emoji functionality.

Despite Durov's bullish announcements and the listing of Tether (USDT), the world's largest stablecoin, on TON rails, the price of the cryptocurrency plummeted, raising concerns among investors and analysts.

Analysts have attributed the decline to a combination of factors, including profit-taking by early investors who purchased TON at lower prices and the realization that the announcements, while promising, may not translate into immediate value for holders.

"The rally had become overheated, and the market was due for a correction," said David Hillier, a crypto analyst at CurrencyHub. "The announcements from Durov were positive, but investors may have been expecting more concrete details and a clearer timeline for implementation."

The listing of USDT on TON was also met with mixed reactions. While it is seen as a positive development for the TON ecosystem, some analysts believe it may not be enough to sustain the price in the long term.

"USDT provides stability to the TON ecosystem, but it's important to remember that TON is still a relatively small player in the crypto market," said Emily Rose, a cryptocurrency researcher at CoinMarketCap. "The adoption of TON by a wider range of users and projects will be crucial for its long-term success."

The recent price decline has dampened the enthusiasm that had surrounded TON in recent weeks. However, it remains to be seen whether the cryptocurrency can regain its momentum and continue its upward trajectory or whether the sell-off marks a more significant correction in its value.