Asia Morning Update: Focus on TON as Elon Musk Cools Enthusiasm Over xAI Negotiations
Good Morning, Asia. Here’s what’s making news in the markets:
This is the Asia Morning Briefing, providing a summary of key stories during U.S. market hours alongside an analysis of market movements. For further insights into U.S. markets, refer to market reports.
Despite an announcement from Pavel Durov earlier in the day U.S. time, the arrangement between Telegram and xAI, Elon Musk’s AI venture, remains in development. The partnership aims for integration within Telegram and a shared revenue model.
The TON token, which is part of Telegram’s ecosystem, is currently valued at $3.30, up from $3 following an initial – now denied – report of the agreement. This token has decreased from a peak of $3.68 after Musk indicated on social media that no formal deal exists between both parties. Nevertheless, TON is still experiencing a daily increase of 11%, according to market data.
While Durov stated there is no finalized agreement yet, he mentioned an “agreement in principle,” which might explain the stability of TON at around $3.30.
With the commencement of the business day in Asia, attention will be focused on Telegram and xAI to see if either company offers further clarification on the status of their collaboration.
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CEO of Decentralized Bluesky Distances Company from Web3 Identity
VANCOUVER—Jay Graber, the CEO of the rapidly expanding decentralized social platform Bluesky, began her career in Web3 as a developer for the privacy-centric cryptocurrency zCash. However, she intends to keep her competitor to X firmly rooted in Web2 principles.
During her appearance at the Web Summit in Vancouver on Wednesday, Graber expressed concerns about the lasting nature and energy demands of blockchain technology, deeming them impractical for social media networks centered on transient and personal content.
“What’s the benefit of having a digital archive of your lunch images forever?” she asked, emphasizing the scalability and cost issues that lead her to steer clear of blockchain technology for Bluesky.
Graber is not opposed to cryptocurrencies; in fact, she acknowledges the genuine potential they hold for applications like payment systems and digital identities. Nevertheless, she points out that Web3 sometimes offers solutions that lack real problems to solve and tends to move toward centralization.
“There was a phase when everyone was treating blockchain like a universal tool, attempting to implement it in every context,” Graber remarked. “Ultimately, as convenience often prevails, most systems end up centralizing.”
In her view, Bluesky’s path forward involves merging decentralization principles—such as user control and data portability—with efficient Web2 infrastructures to create a user-focused platform.
Nvidia’s Strong Earnings Report Propels Stock Higher, Provides Minor Boost to AI Tokens
Nvidia shares climbed nearly 4% in after-hours trading on Wednesday after the company announced first-quarter earnings that surpassed expectations. The report highlighted a 69% rise in revenue year-over-year, with a substantial 73% increase in its data center segment driven by strong demand for AI chips. Net profit surged by 26% to $18.8 billion, positively impacting Nvidia’s year-to-date stock performance.
The earnings announcement offered a slight uplift to AI-focused cryptocurrencies such as Bittensor (TAO), NEAR Protocol, and Internet Computer (ICP), though the increases were minimal.
However, Nvidia issued a warning for future earnings, indicating that second-quarter revenue may fall below market forecasts due to trade tensions with China related to tariffs.
Market Movements:
- BTC: Bitcoin experienced a 1.2% decline, settling at $107,800, even as NYDIG suggests potential for further growth. Crypto markets remained relatively stable, disregarding a court’s ruling that blocked Trump’s expansive tariffs as unconstitutional.
- ETH: Ether is trading above $2700 as the Asian business day unfolds. CoinDesk analyst Omkar Godbole previously pointed out that ETH is poised for a breakout above $3,000, forming a bullish “ascending triangle” pattern signaling increasing buying interest.
- Gold: The price of gold has dropped by 1% to $3,267.47 due to a waning demand for safe-haven assets, although concerns regarding tariffs and geopolitical issues persist.
- Nikkei 225: The Nikkei 225 index is starting off positively, rising by 1% as traders in Japan react cautiously but optimistically to the Supreme Court’s recent ruling against Trump’s tariffs.
- S&P 500: While the S&P 500 closed lower, futures are up by 1% as market participants await further insights regarding the court’s decision to block the tariffs.
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