Toncoin (TON), the native token of the Telegram-adjacent TON blockchain, spiked on Thursday as ecosystem organization The Open Network Foundation said several venture capital firms invested $400 million in the token.

Investors include Sequoia Capital, Ribbit, Benchmark and Kingsway, according to a press release shared with CoinDesk. Vy Capital, Draper Associates and Libertus Capital, CoinFund, Hypersphere, SkyBridge, and Karatage also participated in the round.

“These venture capital firms hold over $400 million worth of Toncoin, which is the native cryptocurrency of the TON Blockchain.It’s important to note that this is not a fundraising round. Instead, these VCs are placing their bets on the future success and utility of the TON Blockchain, its growing ecosystem, and its potential to provide real-world utility for crypto holdings, especially within Telegram,” a Telegram spokesperson told CoinDesk.

TON’s price jumped over 8% above $3.8 immediately following the announcement before paring some of the gains. The token’s price was 2% up over the past 24 hours.

The TON network was originally developed by messaging app Telegram, but continued as an independent operation due to regulatory concerns after the company settled a lawsuit by the U.S. Securities and Exchange Commission (SEC) in 2020.

Telegram CEO Pavel Durov was arrested in France in August as part of a complaint on Telegram’s lack of moderation and cooperation with law enforcement. Durov regained access to his passport from authorities earlier this month. TON surged 20% on the news.

Digital asset investment firm Pantera Capital said in May it made its “largest investment ever” in TON, without disclosing the value of the investment. The token’s price is down 54% since its June peak above $8.