According to BlockBeats, despite the recent sharp decline in TON's price, several cryptocurrency venture capital firms have expressed their continued support for the world's tenth-largest cryptocurrency. The arrest of Telegram CEO Pavel Durov by French authorities has led to a nearly 15% drop in TON's price over the past week, with the token currently trading at $5.58. However, CoinFund's managing partner Alex Felix remains confident in their investment, stating that TON's fundamentals are still attractive.
Matthew Graham, founder and CEO of Ryze Labs, another firm invested in TON, shares a similar sentiment. He noted that while Durov's arrest is significant, it is also noteworthy that the number of accounts on TON surpassed 50 million for the first time this week. Joven Wu, Ryze Labs' head of business development, suggested in a recent blog post that Durov's arrest could be a 'blessing in disguise' for the cryptocurrency, as the controversy has significantly increased TON's visibility, potentially attracting more users and developers to the ecosystem.
The interviewed venture capital firms emphasized that the Telegram app should not be conflated with TON. In 2020, TON officially separated from Telegram following a settlement with the U.S. Securities and Exchange Commission. Felix pointed out that the government's concerns seem to be more related to regional compliance issues typical of traditional tech companies, such as content moderation, rather than the crypto platform itself.
Shauli Rejwan, managing partner at Masterkey VC and an early investor in TON, believes that despite the news of Durov's arrest, the token could eventually shed its association with Telegram. He stated that history has shown strong projects can transcend their initial affiliations, and TON's current development trajectory indicates it has the potential to do so. Additionally, according to the BBC, a French prosecutor announced on Wednesday that Durov is under formal investigation and is prohibited from leaving the country. He must report to the police twice a week, with bail set at $5.5 million.
