Toncoin (TON) Price Surges 8% on Misinformation, TON Foundation Denies Raising $400M

Toncoin (TON) had firsthand experience of this when untrue reports that the TON Foundation had raised $400 million sent prices surging 8%

The cryptocurrency market is no stranger to hoaxes and rumors, especially in the fast-paced realm of meme coins. However, when a prominent cryptocurrency like Toncoin (TON) fell victim to a misinformation campaign, it sparked widespread discussion among investors and traders.

At the beginning of August, reports emerged claiming that the TON Foundation had raised $400 million from a group of U.S.-based venture capital firms. This news sent ripples through the crypto sphere, especially as several news outlets shared the report.

The news quickly propelled Toncoin’s price upward by 8%. Many investors and traders grew frenzied by the news, which drove up the volume of Toncoin trading.

However, the TON Foundation was swift to shut down the reports. Through its official X (formerly Twitter) account, the foundation put out a statement saying that the reports were not accurate.

Instead of a straightforward fundraising, the foundation clarified that over $400 million worth of Toncoin is held by leading U.S.-based venture capital firms. This is part of the foundation’s strategy to build a strong institutional presence for its ecosystem.

“Over $400 million in Toncoin is held by some of the world’s most forward-thinking U.S.-based venture capital firms,” the TON Foundation stated.

While this is still a strong signal of institutional confidence, it is vastly different from a fresh injection of capital into the project.

After clarification from the TON Foundation, crypto communities had a split response. Most investors and traders commended the team for moving quickly against misinformation, but a few remained hopeful for Toncoin’s long-term prospects, with some asserting that having institutional backing alone constituted a vote of confidence for the ecosystem.

However, there were some skeptical about where the rumor started. Some users asked if the misinformation was deliberately distributed with a view to manipulating TON’s price.

Some people thought that whoever gained from the short-term price pump might have waited before rectifying the false information.

One user insinuated the news was planted to “hype things up,” while another said that holding off on the correction permitted early movers to profit from the spike before the price stabilized at normal levels.

Currently, the price of Toncoin is $ 3.61 with a 24-hour trading volume of $ 410.00M and a market capitalization of $ 8.86B. The TON price moved 0.47% in the past 24 hours.

Toncoin Turmoil as Durov Faces Legal Battle

The controversy surrounding Toncoin comes at a time when Telegram founder Pavel Durov is dealing with his legal challenges.

Durov was arrested in August when he landed in Paris, charged by French authorities with not properly regulating criminal activity on Telegram. Critics have claimed that the messaging app has become a haven for illegal activity, including fraud, drug dealing, and the exploitation of children.

Telegram, however, has maintained that it has strict moderation practices in place and quickly removes any content that violates its terms of service.

Recently, Durov has been allowed to return home to Dubai, but his case will continue. On his Telegram channel, he released a statement, expressing gratitude for being released from detention but also noting that his legal battle is ongoing.

“I am grateful to French judges for having given me an opportunity to return and to my attorneys for having assured them that Telegram not only met but exceeded its legal obligations as far as moderation and preventing crimes are concerned,” said Durov.

He added, “After 18 months of investigation, French authorities have decided to close the case. No sanctions will be applied to Telegram.”

Since his arrest, Telegram has made some core changes for enhancing security on its platform. The business has collaborated with the Internet Watch Foundation for combating child exploitation content and has started sharing IP addresses and phone numbers of abusers with law authorities on legitimate legal requests.