The price of cryptocurrency Toncoin (TON) has experienced a steep decline 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 in the last two months.
Toncoin Reacts To Telegram CEO’s Detention
According to French source TF1 TV on Saturday, Telegram founder and CEO Pavel Durov was arrested at the Le Bourget airport in France after alighting from his private jet.
Durov, a 39-year-old Russian-born Emirati, has been reportedly detained due to a “lack of control” on Telegram which French authorities believe has fostered the growth of criminal activities on the messaging app. So far, this arrest has drawn much criticism from the tech community including many crypto users who have described such action as the French government attempting to force censorship on a free social media platform.
Notably, Toncoin, the native token of The Open Network (TON) and a cryptocurrency integrated with the Telegram app recorded a 15.67% decline in market price following news of Durov’s arrest.
Toncoin, which was to be initially launched by Telegram before an intervention by US regulators, plays various critical roles in the messaging app in compensating developers, buying ads, and even acquiring a premium subscription. Therefore, the bearish sentiment generated by the Telegram CEO’s detention pulled TON’s market price to as low as $5.52, a price level last seen in early August. Nevertheless, the altcoin appears to have found some stability as it gently moves upwards into the $5.70 zone.
As earlier stated, TON has been one of the most profitable assets in 2024, thus this price dip may not attract much concern from long-term investors.
According to data from CoinMarketCap, TON gained by over 240% in the first six months of 2024 achieving an all-time high of $8.24, alongside a placement in the top 10 cryptocurrencies based on market cap. While the altcoin has not shown similar growth levels in Q3 2024, the consistent growth in on-chain metrics e.g. active network users spell a rise in interest which could significantly affect price growth.
TON Network Calls For Calm Amidst Durov Arrest
Commenting on Pavel Durov’s sudden arrest, the management of The Open Network has assured all users the blockchain remains functional while affirming support for the embattled Telegram CEO. With an online protest already happening on the X social media platform, the 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 trades at $5.72 with an astounding 504.56% increase in daily trading volume. TON ranks as the 9th largest cryptocurrency with a market cap of $1.57 billion.
Related Reading: Crypto Analyst Says Telegram-Based Notcoin Is Ready To Fly, Here’s How High
Read More from Semilore Faleti on www.newsbtc.com