Toncoin (TON), the cryptocurrency linked to the messaging app Telegram, saw a sharp 13% decline on Sunday following the arrest of the platform’s founder, Pavel Durov, in France.
The digital asset, which had been trading steadily around $6.80, suddenly dropped to $5.99 as news of Durov’s detention circulated among investors. This steep fall highlights the strong connection between the token and Telegram’s leadership, despite the project’s assertions of decentralization.
Durov, 39, was taken into custody on Saturday evening at Paris Le Bourget Airport as he disembarked from a private jet. French authorities have not yet disclosed the charges against the tech entrepreneur, leaving TON investors in a state of uncertainty.
TON, also known as The Open Network, is a blockchain platform initially developed by Telegram. It was created to provide fast transactions, scalability, and user-friendly decentralized applications.
Toncoin (TON), the platform’s native cryptocurrency, plays multiple roles within the ecosystem, including transaction fees and governance. Launched by Telegram in 2018, the project faced regulatory challenges that led Telegram to officially step back from its development in 2020.
The arrest, reportedly carried out by French secret services around 8 p.m. local time, caught many in the tech community by surprise. Durov was reportedly accompanied by his bodyguard and a woman, according to French media outlet TF1 Info.
The price volatility of TON in response to Durov’s legal troubles highlights the broader risks faced by blockchain projects that are closely associated with prominent individuals. While Telegram has positioned TON as an independent ecosystem, the market’s reaction suggests that investors still see Durov’s involvement as critical to the token’s value.
As the situation unfolds, TON holders are left facing an uncertain future. The lack of information surrounding Durov’s arrest has fueled speculation about potential regulatory challenges for Telegram and its cryptocurrency projects.
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