Toncoin (TON) Loses $3B in Market Value After Telegram Co-Founder Pavel Durov's Arrest

The token's value plunged after reports surfaced that Durov was detained at a Paris airport on charges of allowing drug dealers and sex criminals to operate on Telegram.

Toncoin, the cryptocurrency linked to the Telegram Messenger LLP platform, has seen a massive sell-off following the arrest of Telegram co-founder Pavel Durov by French police on Saturday.

According to reports, Durov was detained at a Paris airport over allegations that Telegram was being used by drug dealers and sex criminals to operate on the platform. The arrest is also said to be linked to charges related to data privacy and cryptocurrency regulations.

The news of Durov's arrest sparked panic among Toncoin traders, as the token's price plunged sharply. Toncoin hit a historic low of $5.24 on Sunday, marking a decline of over 25%. However, the token recovered slightly from the lows and was trading at $5.68, up less than 1%, by 06:40 ET (10:40 GMT).

Telegram has been integrating Toncoin into its ecosystem, making the token's performance closely tied to the platform's growth and key developments. With Durov being a central figure in Telegram's story, his arrest had a significant impact on Toncoin traders.

This recent price drop for Toncoin is reminiscent of the behavior observed with Binance's BNB token earlier this year. BNB took a steep dive before bouncing back strongly after the legal troubles of Binance CEO Changpeng Zhao (CZ) subsided.

BNB fell by roughly 15% ahead of CZ's sentencing in April, but once the market absorbed the news, the token surged by nearly 35%. Toncoin could follow a similar trajectory, where initial panic might eventually lead to a recovery as traders reassess the situation.

In related news, the X account of The Open Network (TON) blockchain posted a statement on Twitter regarding Durov's arrest in France. The tweet assures users that "the TON community is still strong and fully operational."

"As a community committed to freedom of speech and decentralization, we stand firmly by Pavel during this challenging time," the statement reads.

Toncoin (TON) was originally developed as part of Telegram's broader vision to create a decentralized platform that goes beyond messaging, bringing blockchain technology into its ecosystem. TON is designed to integrate with the Telegram app, enabling features like in-app payments, bot payments, and microtransactions, while also supporting a strong ecosystem for decentralized applications (dapps).

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