Toncoin (TON) recently surged despite regulatory pressures on the Telegram ecosystem. Telegram is facing requests to release users’ IP addresses due to abuse of its Search feature, which some users exploit to sell illegal goods. This misuse is jeopardizing Telegram's presence in India. To address the issue, Telegram has employed AI technology and updated its Terms of Service to provide user data to regulators in case of violations.

Pavel Durov emphasized that Telegram’s Search feature is meant for finding friends and news, not promoting illegal goods. While these measures are aimed at curbing misuse, they have drawn criticism for potentially compromising privacy. Durov defended the actions, stating they protect the integrity of the platform for its nearly one billion users.

Meanwhile, TON is trading at $5.68, with recent gains of 6.37% in 24 hours and 5.17% over the week. However, the regulatory challenges Telegram faces could eventually impact TON's long-term performance.