Toncoin, a cryptocurrency linked to the Telegram messaging app, has recently seen a sharp decline in its value. The drop of nearly 20% came after news broke of the arrest of Telegram’s billionaire founder, Pavel Durov, in France. This event has raised concerns about the future of Toncoin and its role in the crypto market.
The Arrest of Pavel Durov
Pavel Durov, the founder of Telegram and a significant figure in the Toncoin community, was arrested by French police on August 24. After arriving on his private jet from Azerbaijan, he was detained at Bourget Airport. The arrest was made under a warrant issued by France’s OFIM, an organization focused on preventing violence against minors.
This move is part of a broader investigation into Telegram’s alleged failure to moderate content on its platform, which authorities claim has allowed criminal activities.
As per French media reports Durov could face serious charges, including terrorism, drug trafficking, fraud, money laundering, and sharing child abuse content. If found guilty of breaking the country’s content moderation laws, Durov could face up to 20 years in prison.
Toncoin Price plunged by 20%
The news of Durov’s arrest had an immediate impact on Toncoin’s market value. Meanwhile, within hours, the Toncoin price fell by almost 20% from $7.1 to $5.6, leading to a significant loss in market capitalization, dropping from $17.1 billion to around $14 billion.
Following the arrest, investors rushed to sell their Toncoin holdings, likely fearing further price drops. This sharp drop shows how the market is reacting to the legal issues that Durov and Telegram are facing.
TON Technical Analysis
Toncoin (TON) is currently trading around $5.81, reflecting a substantial recovery from its recent drop. However, technical indicators suggest that Toncoin remains in a vulnerable position, having dropped below key support levels, including the 200-day and 50-day moving averages.
This indicates that Toncoin may experience further downward pressure before finding stability.
