The price of the Toncoin (TON) cryptocurrency has seen a sharp drop following reports of the arrest of Telegram CEO Pavel Durov. Toncoin has been one of the best-performing digital assets in 2024, however, the altcoin has faced a rather turbulent period over the past two months.
Toncoin reacts to the arrest of Telegram CEO
According to French source TF1 TV On Saturday, Telegram founder and CEO Pavel Durov was arrested at Le Bourget airport in France after disembarking from his private plane.
Durov, a 39-year-old Russian-born Emirati, has been arrested due to a “lack of control” at Telegram that French authorities say has fostered the growth of criminal activities on the messaging app. So far, this arrest has sparked much criticism from the tech community, including many cryptocurrency users who have described this action as an attempt by the French government to impose censorship on a free social media platform.
It is worth noting that Toncoin, the native token of The Open Network (TON) and a Cryptocurrency integrated with the Telegram application recorded a 15.67% drop in market price following the news of Durov’s arrest.
Toncoin, which was initially set to be launched by Telegram before an intervention by US regulators, plays several critical roles in the messaging app by compensating developers, buying ads, and even acquiring a premium subscription. Therefore, the bearish sentiment generated by the arrest of Telegram’s CEO drove TON’s market price to a low of $5.52, a price level last seen in early August. However, the altcoin seems to have found some stability as it gently moves towards the $5.70 zone.
As stated above, TON has been one of the most profitable assets in 2024, so this price drop may not attract much concern among long-term investors.
According data from CoinMarketCap, TON gained over 240% in the first six months of 2024, reaching an all-time high of $8.24, along with a placement among the top 10 cryptocurrencies by market cap. While the altcoin has not shown similar levels of growth in Q3 2024, consistent growth in on-chain metrics, for example, active network users mean an increase in interest rates that could significantly affect price growth.
TON calls for calm after Durov’s arrest
Commenting on the sudden arrest of Pavel Durov, The Open Network management has… sure All blockchain users are continuing to operate, while reaffirming their support for the embattled CEO of Telegram. With an online protest already taking place on social media platform X, TON management has also called for a calm and united approach to engaging authorities and resolving the matter at hand.
At the time of writing, TON is trading at $5.72 with a staggering 504.56% increase in daily trading volume. TON ranks as the 9th largest cryptocurrency with a market cap of $1.57 billion.
Related reading: Cryptocurrency analyst says Telegram-based Notcoin is ready to fly — this high
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