Toncoin Loses USD2.7 Billion in Market Value After Telegram Co-Founder Pavel Durov's Detention

Toncoin, the token of The Open Network (TON), slid more than 20 per cent after Pavel Durov was taken into custody at a Paris airport on August 24

A digital asset from a blockchain project linked to Telegram Messenger has lost about USD2.7 billion in market value, reflecting the uncertainty sparked by the detention of the messaging app’s billionaire co-founder and chief executive.

Toncoin, the token of The Open Network (TON), slid more than 20 per cent after Pavel Durov was taken into custody at a Paris airport on August 24 on suspicion of failing to take steps to prevent criminal use of Telegram.

The 10th largest cryptoasset pared some of the drop to trade at USD5.69 as of 10.36am yesterday in Singapore but is still down 16 per cent as a result of the unfolding drama over 39-year-old Durov, according to data compiled by Bloomberg.

TON blockchain has access to Telegram’s 900 million monthly users via a partnership and seeks to enable services such as in-app payments and games. TON’s rise spurred speculation that Telegram has a shot at becoming a “super app” in the style of Chinese giants like WeChat.

The value of assets locked on the TON blockchain surged this year to a peak of USD1.1 billion last month but the figure has now retreated to USD661 million, data from DefiLlama show. Toncoin’s price more than tripled in the past year and the token has a current market value of about USD14.4 billion, according to CoinGecko.

The three-year-old foundation behind the project says it’s separate from Telegram. But the ties between Telegram and TON turned the latter into one of crypto’s most-hyped initiatives. Pantera Capital Management in May described a purchase of Toincoin as the firm’s largest-ever investment.

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