- Durov’s legal issues hit Telegram IPO prospects, shaking investor confidence.
- Telegram bonds plunge 10 points after CEO’s arrest amid criminal charges.
- Toncoin and Notcoin prices drop sharply, reflecting market unease.
Telegram’s plans for an Initial Public Offering (IPO) within the next two years have faced a setback due to criminal charges against its CEO, Pavel Durov. French authorities accused Telegram of failing to address criminal activities on its platform, including the publication of child sexual abuse material.
The Dubai-based messaging app, owned by Durov, has been actively working to raise revenue ahead of a potential IPO by 2026. Telegram’s 2023 financial statements revealed a revenue of $342 million last year but an operating loss of $108 million. Despite Durov’s significant investment and successful debt financing efforts, the recent legal issues have negatively impacted investor confidence.
Durov’s arrest on August 24, 2023, as he arrived in France, has further raised the situation. The price of Telegram’s bonds dropped nearly 10%, trading at around 87 cents on the dollar and yielding over 16%, down from 96 cents before his arrest.
The legal battle, coupled with the potential impact on Telegram’s reputation, could cause challenges for any future stock market listing.
The legal issues have also affected the broader crypto market, particularly Telegram-based tokens. Toncoin, one of these tokens, experienced a sharp decline following Durov’s arrest. The token’s price dropped from a peak of $6.58 on August 24 to around $5.50 on August 30.
TON/USD 1 week Chart: Source: CoinMarketCap
Similarly, Notcoin, another Telegram-related token, showed a similar downward trend throughout the same period. Starting at $0.01084 on August 24, the token briefly peaked on August 25 before steadily declining to around $0.0082 by August 30.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
