Toncoin Loses $3B in Market Value After Telegram Co-Founder Pavel Durov's Arrest

Toncoin, the token tied to The Open Network (TON), has lost roughly $3 billion in market value since Telegram Messenger LLP's co-founder, Pavel Durov

Toncoin Loses $3B in Market Cap as Telegram Founder's France Arrest Sparks Panic Selling

Investing.com – Toncoin, the cryptocurrency linked to The Open Network (TON), has lost about $3 billion in market value since news broke that Telegram Messenger LLP’s co-founder was arrested by French police on Saturday.

The token’s value nosedived after reports that Pavel Durov was detained at a Paris airport over charges related to allowing drug dealers and sex criminals to operate on Telegram. The arrest is also said to be linked to charges involving data privacy and violations of cryptocurrency regulations.

Toncoin’s price crashed as much as 25% on Sunday, hitting a record low of $5.24 as the news of Durov’s arrest triggered panic selling among traders. Toncoin was seen trading at $5.68, up less than 1% as of 06:40 AM ET (10:40 GMT).

Telegram has been instrumental in integrating Toncoin into its ecosystem, with Durov being a key figure in the token’s narrative and future growth. Hence, his arrest led to a wave of panic selling among Toncoin traders.

The recent price action for Toncoin is reminiscent of Binance’s BNB token, which also took a steep hit before bouncing back strongly once the legal troubles surrounding its CEO, Changpeng Zhao (CZ), eased.

BNB dropped about 15% ahead of CZ’s sentencing in April, but once the news was absorbed by the market, the token rallied nearly 35%. Toncoin could see a similar trajectory, where the initial panic might lead to a recovery as traders reassess the situation.

In a related development, The Open Network (TON) blockchain’s X account posted a statement on Twitter regarding Durov’s arrest in France. The post assured users that “the TON community is still strong and fully operational.”

“As a community committed to freedom of speech and decentralization, we stand firmly by Pavel during this challenging time,” TON’s statement added.

Toncoin (TON) was initially created as part of Telegram’s broader vision to build a decentralized platform that extends beyond messaging, bringing blockchain technology into its ecosystem. TON is designed to integrate with the Telegram app, enabling features such as in-app payments, bot payments, and microtransactions, while also supporting a robust ecosystem for decentralized applications (dapps).

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