Cryptocurrency Rival to Bitcoin, Toncoin, Crashes After Telegram CEO Pavel Durov Is Arrested in France

Toncoin, a cryptocurrency rival to bitcoin that boasts a market capitalization of around $14 billion, has suddenly crashed with its price dropping almost 20%.

Bitcoin rival cryptocurrency toncoin has suddenly crashed with its price dropping almost 20%.

The toncoin price crash comes after the chief executive of the toncoin-linked Telegram messaging app was arrested in France.

Local media reported Durov was arrested at Le Bourget Airport following his arrival in country on a private jet as part of a preliminary police investigation.

Durov is facing a possible indictment on Sunday, according to reports that cited anonymous sources, with the investigation focused on Telegram's failure to prevent criminal activity on the messaging app.

Toncoin, an open-source version of a cryptocurrency that runs on The Open Network blockchain previously known as the Telegram Open Network, was launched in 2021.

The toncoin price has rocketed almost 1,000% since then, soaring this year along with a bitcoin price boom amid a surge of activity and users due to the popularity of Telegram-based crypto mini-games that use toncoin.

Telegram’s original plan for toncoin, a cryptocurrency called gram, was never launched after the U.S. Securities and Exchange Commission (SEC) branded its $1.7 billion initial coin offering (ICO) fundraiser an unregistered securities sale in 2020 and ordered it to return the funds.

The toncoin price crashed back after soaring higher this year along with a huge bitcoin price rally.

The non-profit TON Foundation has since led development of the blockchain and toncoin cryptocurrency.

“When Telegram said goodbye to TON last year, I expressed the hope that future generations of developers would one day carry on with our vision of a mass-market blockchain platform," Durov wrote in a post in his official Telegram channel in 2021.

"So I was inspired to see the champions of Telegram’s coding contests continue developing the open TON project, which they rebranded to Toncoin,” the post read, adding: "Toncoin is independent from Telegram."

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