Toncoin decreases 20 percent amid Telegram co-creator`s arrest

(MENAFN) Toncoin, the cryptocurrency linked to The Open Network (TON), has witnessed a dramatic fall in its market valuation, dropping around USD2.7 billion following the recent detention of Telegram co-founder Pavel Durov in Paris. The digital asset saw a steep decline of over 20 percent in its value after news broke that Durov was taken into custody on Saturday. The allegations against him include failing to adequately address criminal activities on the Telegram platform.

As of 7:25 AM London time on Monday, Toncoin's trading price stood at USD5.67, reflecting a 16 percent decrease from previous levels. Despite the sharp drop, the token still holds a significant market capitalization of approximately USD14.4 billion.

The Open Network, which collaborates with Telegram’s vast user base of 900 million monthly users, is designed to support in-app payments and gaming services. The project has gained considerable traction, partly due to its connection with Telegram, a prominent platform within the crypto community. Earlier in the year, the total value of assets locked on the TON blockchain peaked at USD1.1 billion but has since dwindled to USD667 million.

Durov’s arrest has raised concerns about the future stability of Telegram and its related ventures, casting a shadow over Toncoin’s market performance. Investors are wary about the potential long-term effects this legal issue could have on Telegram’s competitive standing and, by extension, on Toncoin’s value.

Notably, Toncoin has received substantial backing from venture capital firms, including Pantera Capital Management LP. The future trajectory of the project will depend largely on the resolution of Durov’s legal troubles and the broader impact on Telegram’s operational landscape.

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