Earlier this year, Pantera paid 40% less for Toncoin, which they have to hold for a year before selling.
One of the biggest venture capital firms in cryptocurrency, Pantera, reportedly made its largest investment to date earlier this year when it invested over $100 million in Toncoin, a cryptocurrency linked to Telegram.
According to a Thursday Bloomberg story, Pantera purchased Toncoin for 40% less than the going rate. When the deal went public in May, at an average price of $6.32, the investment was still profitable.
But before Pantera can begin selling off chunks of its Toncoin investment over a number of years, it must hold onto the cryptocurrency for a full year.
What connection does Ton have with Telegram? Users can now access blockchain features thanks to the messaging service’s integration of Toncoin’s TON blockchain into its app. Users can now buy, sell, and trade Toncoin directly within Telegram as a result.
Additionally, users can perform transactions, leave tips for other users, and partake in other blockchain activities directly within the app thanks to a wallet integration.
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.”
Using Telegram’s enormous user base, he continued, the team hopes that TON will become one of the biggest cryptocurrency networks.
Barney also pointed out that Telegram “doesn’t sell user data and its virality is truly due to the promise of privacy.”
Toncoin has received investments from more than a dozen other companies, such as Animoca Brands and Mirana Ventures.
French Authorities Arrest Telegram CEO Durov on Multiple Charges
But in France, Telegram is being closely scrutinized by the law. CEO Pavel Durov was detained by French authorities and accused of a number of crimes, including money laundering, child pornography, trafficking, and organized crime. Durov is also accused of failing to register cryptography services and of not answering to court orders.
Durov was freed after posting a €5 million bail, but he is not allowed to leave 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
According to Bloomberg, venture capitalists who made investments in Toncoin are currently evaluating how Durov’s legal actions in France will affect Telegram’s user base. They had promised to keep their stock for a minimum of a year.
The arrest of Durov has sparked worries about what comes next. In order to steer Telegram and incorporate Toncoin into its ecosystem, his leadership has been essential. The legal issues he is currently facing have the potential to interfere with Telegram’s operations and affect the uptake and usage of Toncoin.
There is disagreement about what lies ahead. Some contend that, in contrast to traditional businesses, blockchain projects like Toncoin may not rely as heavily on the involvement of a single person due to their decentralized nature. The project might survive this storm if the TON community and its backers keep up their efforts. The possibility of legislative action or changes to Telegram’s approach, however, continues to be a worry.