TON Investors Fear Exodus Amid Telegram CEO's Arrest, Bloomberg Reports

IconCryptoNewsTerminal Staff29 Aug, 2024

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TON Investors Fear Exodus Amid Telegram CEO's Arrest, Bloomberg Reports

The arrest of Telegram CEO Pavel Durov has raised concerns among venture capitalists who invested in the Telegram Open Network (TON), according to Bloomberg. Anonymous sources told the publication that investors are worried about the potential for user flight from the platform. TON has garnered substantial funding from prominent venture capital firms, including Pantera Capital, Animoca Brands, and Mirana Ventures. Pantera Capital reportedly invested over $100 million in January, acquiring TON tokens at a 40% discount to the market price with a one-year lockup. "Investors have been counting on Telegram to drive user adoption of TON," said Lasse Clausen, founding partner at crypto VC 1KX. "This unexpected event raises questions about the network's future." However, some firms, like crypto market maker DWF Labs, have taken advantage of TON's price drop following Durov's arrest to buy the asset.

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