Toncoin Price Drops 20% After Telegram CEO Arrest

John Darbie
Photo: Finoracle.net

Telegram CEO's Arrest Impacts Toncoin's Value

Since the arrest of Telegram's CEO, Pavel Durov, on Saturday, the value of Toncoin, a cryptocurrency closely linked to the Telegram messaging app, has dropped significantly. It fell from about $6.80 to $5.42, marking a more than 20% decline. The arrest in France has raised concerns about the future of the cryptocurrency.

Understanding Toncoin and its Origins

Toncoin is the native cryptocurrency of The Open Network (TON) blockchain, initially known as the Telegram Open Network. It was developed by Pavel and Nikolai Durov. Despite its separation from Telegram, users can still make payments within the app using Toncoin.

Community Reaction and Support for Durov

The TON Society, the blockchain's official community, condemned Durov's arrest, describing it as a threat to freedom of expression. They urged French authorities to respect privacy and free speech. The broader crypto community, including notable figures like TRON's Justin Sun and Ethereum's Vitalik Buterin, expressed support for Durov. Sun even proposed creating a decentralized autonomous organization (DAO) to aid Durov legally, though details were sparse.

The TON blockchain has faced legal challenges, particularly a notable clash with the U.S. Securities and Exchange Commission (SEC) in 2019. The Durovs initially intended to use the blockchain for a cryptocurrency called Grams but settled with the SEC by paying an $18.5 million fine in 2020. Since then, TON has operated independently of Telegram.

Recent Network Challenges

Early Wednesday, the TON blockchain suffered a nearly five-hour outage due to an "abnormal load" related to the release of a new meme coin supporting Durov. This event led major exchanges like Binance to suspend transactions on the network temporarily.

Details of Durov's Arrest

Durov was detained at Le Bourget Airport near Paris after arriving from Azerbaijan. He faces allegations of facilitating criminal activities on Telegram, including distribution of illicit content and money laundering. While no formal charges have been filed, the investigation has been ongoing since July.

Durov's Financial Standing

Despite these challenges, Durov's fortune remains significant. With an estimated net worth of $15.5 billion, he ranks 120th on Forbes' Real-Time Billionaire list.

Community Support and Future Outlook

The crypto community's rallying behind Durov highlights the importance of freedom of expression in the digital age. While the situation remains fluid, it underscores the potential impacts of legal and regulatory challenges on the cryptocurrency markets.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.