Toncoin (TON) has fallen more than 75% from its 2024 peak and over 65% from its 2025 high. Investors are blaming Telegram for selling an amount equivalent to roughly 10% of TON’s circulating market capitalization.
Analysts are divided over the impact of this move. At the same time, Toncoin’s growth has become more closely tied to news related to Telegram.
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Critics Blame Telegram for Toncoin’s Weak Price Performance
A recent Financial Times report stated that Telegram sold more than $450 million worth of Toncoin in 2025. This disclosure sparked intense debate among analysts and the crypto community.
Concerns quickly emerged about the motivation behind the sale. Critics argue that the primary goal was to fund Telegram’s corporate operations rather than directly support the TON ecosystem. This has raised questions about long-term value accrual for TON holders.
Some investors claim that this selling activity has contributed to TON’s stagnant price performance.
“Holy schmolly, no wonder TON is down 66%,” investor 0xGeeGee said.
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Investor Mike Dudas compared the situation to Pump.fun, which spent $225 million buying back its own token, to highlight the difference in strategy.
The FT report also noted that around $500 million worth of Telegram’s Russian bonds have been frozen under Western sanctions. This detail suggests that Telegram still faces financial exposure to Russia. The information has fueled investor doubts about Telegram’s economic independence.
Negative news surrounding Telegram could have a lasting and significant impact on Toncoin’s price. Previously, Telegram CEO Pavel Durov described TON as the economic backbone of the Telegram platform.
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What Do Telegram’s Defenders Say?
In response to these concerns, Manuel Stotz, Executive Chairman of TON Strategy Co (NASDAQ: TONX), pushed back against the criticism.
He emphasized that Telegram remains committed to the TON blockchain. He clarified that all TON sold is subject to a four-year vesting period. The largest buyer is TON Strategy Co itself, a permanent capital vehicle designed to accumulate, hold, and stake TON rather than sell it on the market.
Meanwhile, CoinGecko reported that TON Strategy is currently sitting on losses. The firm holds more than 4% of TON’s total supply, now valued at over $406 million, while it spent $713 million to accumulate the position.
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Supporting the defense, contributor DamX argued that Telegram’s sales do not represent an exit but an effort to balance the ecosystem. He claimed that excessive TON accumulation by Telegram would hinder decentralization. Controlled sales to long-term buyers with lockups and vesting are presented as a healthier alternative.
“Telegram sells TON because it has to, not because it wants out. Ads, revenue sharing, minting and upgrading usernames, gifts, Premium, Stars, and other in-app payments all settle through TON in one way or another. As Telegram scales, it naturally accumulates TON from these flows,” DamX said.
Regarding the alleged financial exposure to Russia, Pavel Durov denied the claim, stating that the information was inaccurate.
Ultimately, the credibility of these defenses may be tested by whether TON’s price recovers in 2026 and whether investor confidence returns to the altcoin.