Telegram’s native Toncoin tumbles as app’s founder is arrested in France
Telegram's The Open Network (TON) logo. (Photo obtained via StormGain)
Toncoin (TON), the cryptocurrency associated with messaging app Telegram, plunged 13% 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, abruptly fell to $5.99 as news of Durov’s detention spread through investor circles. This sharp decline highlights the close ties between the token and Telegram’s leadership, despite the project’s claims of decentralization.
Durov, 39, was apprehended Saturday evening at Paris Le Bourget Airport as he disembarked from a private jet. French authorities have not disclosed the charges against the tech entrepreneur, leaving TON holders in a state of uncertainty.
TON, or The Open Network, is a blockchain platform initially developed by Telegram. It was designed to offer fast transactions, scalability, and ease of use for decentralized applications.
The project’s native cryptocurrency, Toncoin (TON), serves multiple functions within the ecosystem, including transaction fees and governance. Initially launched by Telegram in 2018, the project faced regulatory hurdles that led to Telegram officially stepping away 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 off guard. Durov was accompanied by his bodyguard and a woman at the time, according to French media outlet TF1 Info.
TON’s price volatility in response to Durov’s legal troubles underscores the broader challenges facing blockchain projects closely associated with high-profile individuals. While Telegram has positioned TON as an independent ecosystem, the market reaction suggests investors still view Durov’s involvement as crucial to the token’s value proposition.
As the situation unfolds, TON holders are left to grapple with an unclear future. The lack of information surrounding Durov’s arrest has fueled speculation about potential regulatory challenges for Telegram and its cryptocurrency endeavors
