India Orders Telegram Delisting, Sparking Crypto Market Concerns
India’s directive for Google and Apple to remove Telegram from their app stores has sent ripples through the cryptocurrency market, with the native token GRAM experiencing a notable decline. The move, affecting an estimated 104 to 150 million users, effectively cuts off Telegram’s largest national user base.
Temporary Ban Tied to Exam Re-examination
The delisting order, enacted under Section 69A of India’s Information Technology Act, is explicitly temporary. It is linked to the NEET-UG medical entrance re-examination, scheduled for June 21. The Internet Freedom Foundation has criticized the decision, labeling the shutdown of Telegram a “band-aid solution” and a “disproportionate answer to exam fraud.”
TON Blockchain’s Distribution Moat Under Threat
The investment thesis for the TON blockchain and its native token, GRAM, hinges on Telegram’s vast user base as a distribution channel. The Indian government’s order has highlighted a vulnerability, demonstrating that this “moat” can be compromised.
Broader Crypto Market Implications
The decision is expected to impact the broader cryptocurrency market, given India’s significant number of active crypto holders. Telegram, alongside platforms like X, serves as a hub for many of these crypto communities.
Government Action Driven by Exam Leak Allegations
India’s Ministry of Electronics and Information Technology, acting on a request from the National Testing Agency (NTA), invoked Section 69A of the IT Act. The NTA had previously canceled the original May 3 exam due to allegations of a paper leak, with Telegram channels reportedly involved in the distribution and fabrication of leaked materials.
Message Editing Feature Disabled
In a separate directive, Telegram has been ordered to disable its message-editing feature for Indian users until June 30. This measure targets a specific function investigators believe cheating networks exploited to create fabricated evidence of exam leaks. The current delisting order is set to expire on June 22, 2026, the day after the re-examination.
Telegram CEO Alleges BGP Hijacking
Telegram CEO Pavel Durov has vehemently opposed the ban, accusing Indian telecom provider Reliance of employing BGP hijacking. Durov claims Reliance is manipulating the Border Gateway Protocol via autonomous system number AS18101 to disrupt Telegram access for users outside India, including in the United Arab Emirates. He further alleged that Reliance and WhatsApp collaborated to lobby for the ban, citing Reliance’s partial ownership by Meta as a potential motive.
Telecom Industry Source Disputes Claims
A senior source within the Indian telecom industry has refuted Durov’s allegations, suggesting a conflation of two distinct entities: Reliance Communications, which manages subsea cables and holds AS18101, and Reliance Industries Ltd, the parent company of Jio, where Meta holds a minority stake without operational control. The source characterized Durov’s claims as either a misunderstanding or deliberate misinformation. At the time of publication, Telegram, Jio, Meta, and Reliance Communications had not responded to media inquiries.
Investment Calculus Affected by Ban’s Nature
The disruption to Telegram’s crypto-related services in India, including tap-to-earn games, quiz apps, and Web3 mini-apps, has immediate consequences for users. The long-term implications for the TON blockchain and GRAM depend on the nature of the ban. If it is purely regulatory, driven by exam integrity concerns, it may be temporary. However, if Durov’s allegations of competitive warfare and lobbying hold true, the ban could be an instrument of market suppression, with potentially more complex and lasting effects. The BGP hijacking claim, if substantiated, would independently raise alarms about manufactured disruptions to internet traffic beyond government directives.
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