Telegram’s xAI Deal Unclear as TON Holds Strong

Telegram and xAI Deal Not Final Yet

Telegram founder Pavel Durov announced a deal with Elon Musk’s AI company, xAI, earlier this week. The update caused a spike in interest. Many assumed the partnership was already signed and done. But a few hours later, Elon Musk posted on X that no agreement had been finalized. Durov later confirmed this. He said there is only an “agreement in principle.” Nothing is official yet.

This sudden twist created confusion. It also caused rapid movements in the crypto market, especially with TON.

Following the initial announcement, TON, the coin linked to Telegram's ecosystem, surged. The price went from $3 to $3.30. It even hit $3.68 at one point. That had place prior to Musk intervening to refute any formal agreement. After then, the token somewhat declined but remained stable.

Source: X

TON is currently up 11% for the day. The "agreement in principle," according to many dealers, provided it considerable leeway. For TON, $3.30 appears to be a solid support level. Speculators and investors are keeping a tight eye on both businesses in case there is any new information.

More updates are now awaited by the crypto community. As Asia's business day progresses, more clarification might be forthcoming. Everyone will be watching Telegram and xAI to see what happens next.

If they release more statements, TON could swing again. For now, traders are holding their breath.

Bluesky CEO Pushes Back on Web3 Hype

Jay Graber, CEO of the decentralized social media app Bluesky, spoke at the Web Summit in Vancouver. She said Bluesky will not use blockchain tech. Graber believes blockchain is too permanent and too heavy for everyday social platforms.

She asked why a photo of someone’s lunch needs to be stored forever on the blockchain. According to her, that’s not practical. Instead, she’s sticking to Web2 tools, which she says are better suited for consumer-facing platforms.

Although she’s staying away from blockchain at Bluesky, Graber isn’t against crypto. She thinks crypto still has strong use cases. Payments and digital identity, for example, could benefit from this tech. But she also pointed out that many Web3 projects are over engineered. Some try to solve problems that don’t really exist.

Source: X

She warned that blockchain-based systems tend to centralize over time. Convenience often wins, even in decentralized systems. Bluesky wants to balance user control with ease of use. That’s why it will keep its tech simple.

Nvidia posted strong earnings this week. The company reported a 69% revenue jump compared to last year. Its data center business grew 73%. Net income climbed to $18.8 billion. This news helped Nvidia shares rise 4% in after-hours trading.

AI-related crypto tokens also reacted. Bittensor (TAO), NEAR Protocol, and Internet Computer (ICP) saw some modest gains. The move wasn’t huge, but it showed the connection between traditional AI news and AI tokens.

Even with strong earnings, Nvidia gave a cautionary note. It warned that second-quarter revenue might come in below expectations. The reason? Trade tensions between the U.S. and China, especially related to tariffs.

Investors are watching closely. This could affect not only Nvidia stock but also related sectors, including AI-focused crypto.

Bitcoin and Ether Hold Steady

Bitcoin dropped slightly by 1.2% to $107,800. However, analysts at NYDIG still see room for growth. Crypto markets didn’t react much to a U.S. court ruling that blocked some of Trump’s tariffs. That news had more impact on traditional markets.

Ether is showing more strength. It’s trading above $2,700. Some analysts think it might soon break past $3,000. ETH is forming what they call an “ascending triangle.” This pattern often shows growing demand and tighter supply. If it breaks past resistance, a rally could follow.

Gold slipped 1% to $3,267.47. Investors seem to be moving away from safe-haven assets for now. But uncertainty around tariffs and global politics remains.

In Asia, Japan’s Nikkei 225 is up 1%. Investors there are reacting to the same court ruling about tariffs, but with more optimism. The S&P 500 concluded the day lower in the United States. Futures are up 1%, though. Traders are awaiting additional cues from the political and legal system.

Final Thoughts

The tech, cryptocurrency, and traditional markets have all had a busy day. There is a lot going on, from Nvidia's significant profits to Bluesky's blockchain position to Telegram's partially confirmed deal. Investors, particularly those in the AI and cryptocurrency industries, are anticipating the next development.