Toncoin cryptocurrency drops 19 percent following Durov detention

(MENAFN) The price of Toncoin, the cryptocurrency associated with Telegram, has experienced a dramatic decline of nearly 19 percent following the recent arrest of Telegram founder and CEO Pavel Durov, as reported by the Russian business daily Vedomosti. The significant drop was noted by data from Binance, a major cryptocurrency exchange, and reflects growing concerns surrounding the legal issues facing the Telegram platform.

The Toncoin cryptocurrency is part of the Telegram Open Network (TON) blockchain, which was initially unveiled by Durov and his brother Nikolay in 2018. However, the project faced a major setback when the United States Securities and Exchange Commission (SEC) sued Telegram in 2020 for raising USD1.7 billion through an initial coin offering, leading the company to abandon the venture. Despite this, Durov reintroduced the TON blockchain and Toncoin in September of the previous year, asserting that the cryptocurrency would play a significant role in the operations of businesses and developers within the Telegram ecosystem.

Before Durov’s arrest on August 24, Toncoin was trading at USD6.79. By 3 PM Moscow time on August 26, the value had plummeted to USD5.50. This sharp decrease also led to TON falling out of the top ten most active cryptocurrencies on global exchanges, with its market capitalization dropping from USD17.1 billion to USD14 billion, as reported by Crypto Briefing.

Durov, a 39-year-old tech entrepreneur with multiple citizenships, was detained by French authorities upon arriving in Paris from Azerbaijan. The arrest is linked to a broader investigation into allegations that Telegram failed to adequately moderate its platform, potentially allowing criminal activities to occur. The legal situation has cast a shadow over the future of Toncoin and the TON blockchain, impacting investor confidence and market stability.

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