The article Toncoin (TON) Price Drops 20% Following Pavel Durov’s Startling Arrest originally aired on Coinpedia Fintech News.
The value of Toncoin, a cryptocurrency connected to the messaging platform Telegram, has dropped dramatically recently. Following word of Pavel Durov, the millionaire creator of Telegram, being arrested in France, the stock fell by around 20%. Concerns regarding Toncoin’s future and place in the cryptocurrency market have been raised by this incident.
Pavel Durov’s Arrest
On August 24, French police detained Pavel Durov, the founder of Telegram and a prominent member of the Toncoin group. He was held at Bourget Airport after taking his private jet from Azerbaijan. The French group OFIM, which works to stop violence against children, issued the warrant for the arrest.
This action is a part of a larger probe into Telegram’s purported inability to control information on its platform, which has, according to authorities, enabled illegal activity.
According to sources in the French media, Durov may be charged with significant offenses such as money laundering, terrorism, drug trafficking, fraud, and transmission of content that depicts child abuse. Durov may spend up to 20 years in prison if he is found guilty of violating the nation’s content moderation regulations.
The price of Toncoin fell by 20%.
The market value of Toncoin was immediately impacted by the news of Durov’s imprisonment. In the meantime, Toncoin’s price dropped from $7.1 to $5.6 in less than a day, losing about 20% of its market capitalization, which was down from $17.1 billion to about $14 billion.
Investors hurried to liquidate their Toncoin holdings after the arrest, probably out of concern for additional price declines. The market’s response to the legal problems Durov and Telegram are facing is evident in this sudden decline.
Technical Analysis (TON)
After a recent decline, Toncoin (TON) is now trading at about $5.81, showing a significant comeback. Technical signs, however, point to Toncoin’s continued vulnerability as it has fallen below important support levels, such as the 200- and 50-day moving averages.
This suggests that before Toncoin finds stability, there may be more downward pressure.
Open interest in Toncoin jumps by 32% after Pavel Durov’s arrest
Following the news of Pavel Durov’s arrest, the price of Toncoin fell precipitously. However, future traders saw this as an opportunity, as open interest surged by 32%.
Following the arrest of Telegram CEO Pavel Durov, prospective traders increased their bets on the asset’s price using Toncoin, the native coin of The Open Network and originally created by the messaging app Telegram.
When Durov’s plane touched down at the Bourget airport south of Paris on August 24, he was taken into custody. He is accused of conspiring, money laundering, terrorism, trafficking, fraud, and other offenses.
According to CoinGlass data, Toncoin TON $5.78 open interest (OI) increased 32% to $303.09 million within hours of the news being made public. Following the news that caused TON’s price to drop, a throng of traders emerged.
According to CoinMarketCap, TON is currently trading at $5.71, down 14.71% since August 24.
The total number of unresolved derivative contracts, such as futures and options, is known as OI.
An increase in OI suggests that traders are more confident in their ability to forecast the direction of TON’s price, either upward or downward.
In an Aug. 24 X post, pseudonymous cryptocurrency trader Daan Crypto Trades forecasted that the majority of them are traders anticipating more declines.
The majority of these are definitely hedges or shorts, he continued.
Traders often adopt such positions when fear and uncertainty enter the market, particularly with regard to the founder, executives, or company as a whole of a cryptocurrency token.
Traders predict Pavel Durov will be released shortly
He also claimed that, based on the circumstances surrounding Durov’s detention, he believes he will be released soon.
Nonetheless, he cautioned his 380,300 X followers from taking the same short positions, emphasizing the importance of always being careful when catching a falling knife.
If he is released, the announcement should provide a good squeeze. Daan Crypto Trades predicted a few days of erratic and choppy price behavior till the though.
Crypto trader Anup Dhungana had a similar sentiment, claiming that if Durov is released after interrogation and probable diplomatic protests, the price might rebound faster than predicted.
Toncoin Token Drops $2.7B Following Telegram CEO’s Surprising Arrest!
Telegram co-founder Pavel Durov’s incarceration resulted in a loss of more than 20% in digital assets tied to the blockchain project.
Toncoin, the tenth largest cryptocurrency, traded at $5.69, but is still down 16% owing to continuous uncertainty.
Toncoin Token’s potential as a “super-app” is jeopardized by its close ties to Telegram, which have come under suspicion after Durov’s imprisonment.
The Toncoin token, or TON, associated with Telegram Messenger LLP, had a shocking $2.7 billion market value decrease as a result of the market’s anxieties and uncertainties over Telegram co-founder Pavel Durov’s detention.
The Market Decline and Recovery of Toncoin
Following reports that Telegram co-founder Pavel Durov was arrested at a Paris airport on Saturday, the token experienced a 20% decline. Allegations that he neglected to take action to stop Telegram from being used for illegal purposes are said to be the reason for that arrest.
The 10th-largest cryptocurrency by market capitalization, Toncoin token, was up to $5.69. It is still 16% below its previous value in the wake of the ongoing turmoil surrounding Durov.
The Risk to Telegram’s Super-App Ambitions
With a cooperation with Telegram, this Open Network blockchain hopes to integrate a number of applications, including gaming and in-app purchases, by utilizing Telegram’s 900 million monthly users.
The transaction has increased conjecture that Telegram would develop into a Chinese “super-app” akin to WeChat. Although the project claims to be independent of Telegram, close ties have elevated Toncoin to the top of the cryptocurrency chatter list. Pantera Capital Management LP declared in May that their acquisition of Toncoin was its largest investment to date.
Durov, who is still in charge of Telegram, is not, however, about to give up. In a statement, the business praised its adherence to EU legislation, such as the Digital Services Act, and said that Durov has “nothing to hide.”
Richard Galvin, a co-founder of DACM, who made an investment in Toncoin tokens earlier this year, claims that the extent of Telegram’s damages has not yet been fully ascertained by Durov’s incarceration. He went on to say that this uncertainty has already been baked in by the market’s previous response. Toncoin will be impacted by any negative news in this space that could harm Telegram’s competitive positioning.
TON Drops More Than 18% After Telegram Founder Pavel Durov Is Arrested in France
On August 24, Pavel Durov, the founder of Telegram, was detained in France on suspicion of not doing enough to stop illegal activity on the app.
After Durov was arrested, the price of TON dropped precipitously by more than 18%.
The CEO and millionaire creator of the messaging service Telegram, Pavel Durov, was detained in France on August 24. There are increasing suspicions that this app is involved in illegal activity.
Telegram founder Pavel Durov is detained by French police for allegedly abusing the app
When a plane from Azerbaijan landed at the airport in Paris-Le Bourget, Telegram founder Pavel Durov was taken into jail. A woman and his bodyguard were with him. He is reportedly being held because of his claimed inability to keep an eye on illicit activity taking place on Telegram’s platform.
In addition to being a citizen of Saint Kitts and Nevis, the United Arab Emirates, and Russia, Durov also got French citizenship in 2021. After defying a government attempt to restrict access to opposition parties on his then-social media platform, VK, the entrepreneur departed Russia in 2014.
Since then, Pavel Durov, the creator of Telegram, has focused on the platform, which is highly well-liked in Russia, Ukraine, and other former Soviet states. With a goal of one billion users by the end of the year, Telegram now has over 900 million active users.
This might have far-reaching effects overall, especially considering Durov’s detention in light of his connections to Russia during the ongoing conflict in Ukraine. According to sources, Telegram serves as the main line of communication for both parties. The Kremlin and President Volodymyr Zelensky of Ukraine both use it to disseminate news and, most of the time, false information about the conflict.
After Durov’s Arrest, the Price of Toncoin Drops Sharply
The Russian embassy in France announced that it is looking for information about Durov’s imprisonment. The arrest caused tremors in the cryptocurrency market as well; Toncoin, a token associated with Telegram, fell more than 18%.
The project was never truly closed under community development, even though Telegram had decided to back off and cease any direct involvement with the TON blockchain in 2020 due to regulatory obstacles. Telegram has since been searching for ways to incorporate the blockchain network into its ecosystem.
