Telegram-Linked Crypto Token Loses $2.7 Billion After Durov's Detention
Technology
The market value of Toncoin, a token linked to Telegram, has dropped by $2.7 billion, falling 16% after Pavel Durov's detention in France.
Toncoin, the token of The Open Network (TON), plunged over 20% following reports that Telegram’s co-founder Pavel Durov was detained at a Paris airport on suspicion of not taking adequate measures to prevent criminal activities on the messaging app. By Monday morning in Singapore, the token had recovered slightly to trade at $5.69, still marking a 16% decline according to Bloomberg data.
The TON blockchain, which is connected to Telegram’s 900 million monthly users, aims to provide in-app payment services and games. TON's rise fueled speculation that Telegram might evolve into a “super-app” similar to China's WeChat.
Despite TON’s claim of independence from Telegram, their close relationship has made it one of the most anticipated projects in the crypto space. Pantera Capital described its purchase of Toncoin as the firm's largest-ever investment, but Durov's detention may shake confidence in the project.
Billionaire Pavel Durov, who is also Telegram’s CEO, has maintained that the company complies with European laws, and stated he has “nothing to hide.” However, analysts believe that Durov’s detention could weaken Telegram’s market position, which would negatively impact TON’s value.
TON's social media account joined other voices, like Elon Musk’s, in showing support for Durov by sharing hashtags #FreePavel and #FREEDUROV and changing its logo to the “Resistance Dog” as a sign of solidarity.
The TON blockchain, which is connected to Telegram’s 900 million monthly users, aims to provide in-app payment services and games. TON's rise fueled speculation that Telegram might evolve into a “super-app” similar to China's WeChat.
Despite TON’s claim of independence from Telegram, their close relationship has made it one of the most anticipated projects in the crypto space. Pantera Capital described its purchase of Toncoin as the firm's largest-ever investment, but Durov's detention may shake confidence in the project.
Billionaire Pavel Durov, who is also Telegram’s CEO, has maintained that the company complies with European laws, and stated he has “nothing to hide.” However, analysts believe that Durov’s detention could weaken Telegram’s market position, which would negatively impact TON’s value.
TON's social media account joined other voices, like Elon Musk’s, in showing support for Durov by sharing hashtags #FreePavel and #FREEDUROV and changing its logo to the “Resistance Dog” as a sign of solidarity.
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