Toncoin, the cryptocurrency associated with the Telegram messaging app, has experienced a significant decline, shedding nearly 20% of its value. This sharp drop follows the arrest of Telegram’s billionaire founder, Pavel Durov, in France, sparking widespread concern about the future of both Toncoin and its position in the volatile cryptocurrency market.
Pavel Durov’s Arrest: A Sudden Blow to the Toncoin Ecosystem
On August 24, French authorities detained Pavel Durov, the enigmatic founder of Telegram and a pivotal figure in the Toncoin community. Durov was apprehended at Bourget Airport shortly after arriving from Azerbaijan on his private jet. His arrest was reportedly executed under a warrant from France’s OFIM, a governmental body dedicated to preventing violence against minors.
This arrest is part of a broader investigation into Telegram’s alleged negligence in moderating content on its platform. French authorities have accused Telegram of enabling criminal activities by failing to adequately control the spread of illegal content, including terrorism, drug trafficking, fraud, money laundering, and the distribution of child exploitation material. If convicted, Durov could face severe legal consequences, with potential prison sentences of up to 20 years.
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Toncoin Price Plunges Amidst Uncertainty
The arrest of Pavel Durov sent immediate shockwaves through the Toncoin market. Within hours of the news breaking, Toncoin’s price plummeted from $7.1 to $5.6, erasing nearly $3 billion in market capitalization as it dropped from $17.1 billion to around $14 billion. Investors, spooked by the uncertainty surrounding Durov’s legal troubles, quickly offloaded their holdings, leading to a significant sell-off.
This sharp decline underscores the market’s sensitivity to the legal challenges faced by key figures in the crypto space. The Toncoin community, which has closely tied its fortunes to Durov and Telegram, now faces an uncertain future as it grapples with the fallout from these events.
TON Technical Analysis: A Rocky Road Ahead
Despite a slight recovery, with Toncoin trading at around $5.81 at the time of writing, the cryptocurrency remains on shaky ground. Technical analysis reveals that Toncoin has fallen below crucial support levels, including the 200-day and 50-day moving averages, indicating that further downward pressure may be on the horizon before the asset finds stability.
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