Increase in toncoin's (ton) value: reasons explained.
Telegram's $1.5 Billion Bond Issue Secures BlackRock's Participation, Boosting Toncoin's Price
Institutional investors, including BlackRock, Citadel, and Abu Dhabi's Mubadala Investment Fund, have hopped aboard Telegram's latest $1.5 billion bond offering. The five-year bonds, with a 9% yield, are primarily intended to refinance Telegram's existing debt.
According to reports from the Wall Street Journal, the investment has been considered a strong endorsement of Telegram's future prospects and the underlying Tonchain technology. The new bonds offer investors the option to convert their debt into equity if Telegram goes public before maturity, potentially by 2030.
Following the announcement, Toncoin, the native token of the Tonchain ecosystem, surged by approximately 6.49%, reaching $3.67. This surge brought the token's market capitalization close to $9 billion, although it is still trading below 61.6% of its 2024 high.
Meanwhile, Telegram co-founder Pavel Durov announced that the company has reached 15 million paying users and is aiming for $2 billion in revenue by 2025, marking a doubling of the previous year's revenue. However, Durov remains under pre-examination due to his lack of cooperation with inquiries about illegal content on Telegram. French prosecutors have rejected a request for Durov to travel to the U.S., stating insufficient grounds for the request.
As Telegram proceeds with its growth plans and potentially positions itself for an IPO, the involvement of major institutional investors like BlackRock is expected to bolster the credibility of Telegram's ecosystem and accelerate the adoption of Tonchain and Toncoin. The high bond yield indicates Telegram's strong financial health, providing a positive outlook for Toncoin's long-term value as the ecosystem expands.
The involvement of BlackRock in Telegram's bond issue signals a growing interest of institutional investors in blockchain technology, especially within the finance sector. As Telegram aims for an IPO, the adoption of Tonchain could potentially extend beyond the sports and entertainment industries where it has found initial success, boosting the long-term value of Toncoin.
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