The price of cryptocurrency Toncoin (TON) has seen a sharp decline following reports of the arrest of Pavel Durov, CEO of Telegram. Toncoin was one of the best performing digital assets in 2024, but the altcoin has gone through quite a turbulent period over the past two months.
Toncoin responds to the detention of Telegram’s CEO
According to French source TF1 television On Saturday, Pavel Durov, founder and CEO of Telegram, was arrested at Le Bourget Airport in France after disembarking from his private jet.
Durov, a 39-year-old Russian-born Emirati, has reportedly been arrested over a “lack of control” on Telegram, which French authorities believe has fueled the growth of criminal activity on the messaging app. So far, this arrest has drawn widespread criticism from the tech community, including many crypto users who have described such actions as the French government’s attempt to enforce censorship on a free social media platform.
Notably, Toncoin, the native token of The Open Network (TON) and a cryptocurrency integrated with the Telegram app, recorded a 15.67% drop in its market price following news of Durov’s arrest.
Toncoin, which was initially set to be launched by Telegram before intervention from US regulators, plays several crucial roles in the messaging app in compensating developers, buying ads and even purchasing a premium subscription. Therefore, the bearish sentiment generated by the detention of Telegram’s CEO caused TON’s market price to fall to $5.52, a price level last seen in early August. Nevertheless, the altcoin seems to have found some stability as it moves gently up towards the $5.70 zone.
As previously mentioned, TON has been one of the most profitable assets in 2024, so this price drop may not cause much concern among long-term investors.
According to data from CoinMarketCap, TON gained over 240% in the first six months of 2024, reaching an all-time high of $8.24, in addition to placing in the top 10 cryptocurrencies by market capitalization. Although the altcoin has not shown similar levels of growth in the third quarter of 2024, the consistent growth in on-chain metrics, for example active network users, means a surge in interest that could significantly impact price growth.
TON network calls for calm amid Durov arrest
In response to the sudden arrest of Pavel Durov, the management of The Open Network has done so insured The blockchain remains functional for all users, while confirming support for Telegram’s controversial CEO. With an online protest already taking place on social media platform X, TON management has also called for a calm and united approach to engage the authorities and resolve the issue.
At the time of writing, TON is trading at $5.72, with an astonishing 504.56% increase in daily trading volume. TON is the 9th largest cryptocurrency with a market capitalization of $1.57 billion.
Related reading: Crypto Analyst Says Telegram-Based Notcoin Is Ready to Fly, Here’s How High
