Changpeng Zhao's recent criticism of Telegram has intensified selling pressure on TON cryptocurrency, which has fallen 10% over the past week. The Binance co-founder's public dismissal of the messaging platform as bot-infested comes as TON struggles with broader market headwinds and technical breakdown below key support levels.
What to Know:
- TON has dropped 50% year-to-date and fell below the top 30 cryptocurrencies by market capitalization
- Changpeng Zhao criticized Telegram for fake accounts and spam issues, potentially undermining confidence in TON's foundation platform
- Despite negative price action, Binance traders maintain a long/short ratio of 3.3, indicating bullish sentiment among top traders
Technical Breakdown Signals Deeper Correction Ahead
TON reached its peak near $3.80 in early August before entering a sustained decline that has erased significant gains. The cryptocurrency has lost 17% in the past month alone, with particularly sharp selling pressure emerging after it broke below critical support at $2.50 on September 22.
Market data from Coinglass reveals a complex picture among derivatives traders. While the overall sentiment appears bearish based on price action, the long-to-short ratio on major exchanges suggests institutional confidence remains intact. On Binance specifically, top traders maintain a ratio of 3.3 in favor of long positions.
Net inflows into TON spot exchanges have increased steadily in recent hours, indicating potential accumulation despite the downward price momentum.
The recovery from Monday's lows showed strong buying interest, evidenced by the long lower wick formation on daily charts. However, sustainable recovery requires follow-through above the $3.00 resistance level to reverse September 22 losses.
Bitcoin's influence on altcoin performance remains significant, with TON's trajectory closely tied to broader market movements. Bitcoin currently trades near the $110,000 psychological level rather than the $115,000-$120,000 range that would signal stronger market conditions.
Zhao's Comments Strike At TON's Foundation
The Binance founder's critique of Telegram extends beyond typical market commentary to challenge the fundamental premise underlying TON's growth strategy. Zhao stated that most Telegram accounts appear fake and disclosed he no longer uses the messaging application due to excessive spam.
His comments specifically targeted Telegram's open messaging system, explaining that "anyone can message you when they know your handle" created an unusable experience.
Zhao reported that spam volume became so severe it caused performance issues on his mobile device.
Despite reaching out directly to Pavel Durov, Telegram's founder, the problems persisted according to Zhao's account.
These criticisms carry particular weight given TON's integral relationship with Telegram's ecosystem. The blockchain emerged as Telegram's alternative after regulatory challenges forced the company to abandon its original GRAM token project following SEC enforcement action.
TON's value proposition centers on its integration with Telegram's messaging platform, which serves over one billion active users worldwide. The blockchain enables embedded wallet functionality and mini-applications for gaming and decentralized finance directly within the messaging interface.
Understanding The Crypto Market Dynamics
Cryptocurrency markets demonstrate extreme sensitivity to influential figures' public statements, with single comments capable of moving billions in market capitalization. Zhao's position as Binance co-founder gives his opinions outsized impact across digital asset markets.
The timing of Zhao's Telegram criticism coincides with broader market uncertainty and technical weakness in major cryptocurrencies including Bitcoin and Ethereum. This convergence of negative factors creates compounding pressure on altcoins like TON that depend on both technical momentum and fundamental narrative strength. Market participants often interpret criticism from exchange leaders as signals about platform quality and long-term viability. When such comments target the foundational infrastructure supporting a cryptocurrency's use case, the impact extends beyond typical price volatility.
Closing Thoughts
TON faces mounting pressure from both technical breakdown and fundamental concerns raised by one of cryptocurrency's most influential figures. While trader positioning suggests some confidence remains, Zhao's critique of Telegram challenges the core growth thesis underlying TON's blockchain ecosystem.