- Durov's authorized troubles have dealt a blow to Telegram's IPO prospects and shaken investor confidence.
- Telegram's bonds plummeted 10 factors after its CEO was arrested on felony expenses.
- Reflecting market uncertainty, costs of Toncoin and Notcoin plummeted.
Telegram's plans for an preliminary public providing (IPO) throughout the subsequent two years have been thwarted by felony expenses towards CEO Pavel Durov, after French authorities accused the corporate of failing to deal with felony exercise on its platform, together with the publication of kid sexual abuse materials.
The Dubai-based messaging app owned by Durov is working aggressively to develop into worthwhile, with plans for an IPO by 2026. Telegram's fiscal 2023 monetary assertion confirmed that it had income of $342 million final 12 months, however an working lack of $108 million. Regardless of Durov's giant investments and profitable debt financing, current authorized points have negatively affected investor confidence.
The state of affairs worsened with Durov’s arrest upon his arrival in France on August 24, 2023. Telegram’s bond costs have fallen practically 10% from 96 cents earlier than his arrest to commerce at round 87 cents on the greenback, a yield of over 16%.
This authorized battle, mixed with the potential influence on Telegram's fame, may derail any future inventory trade itemizing.
The authorized points have additionally affected the broader cryptocurrency market, significantly Telegram-based tokens. Considered one of these tokens, Toncoin, has plummeted following Durov's arrest. The token's value has fallen from a excessive of $6.58 on Aug. 24 to round $5.50 by Aug. 30.
TON/USD 1-week chart: Supply: CoinMarketCap
Equally, Knotcoin, one other Telegram-related token, confirmed an identical downward development throughout the identical interval. Beginning at $0.01084 on Aug. 24, the token briefly peaked on Aug. 25 earlier than steadily declining to round $0.0082 by Aug. 30.
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