Toncoin Under Pressure After Telegram Founder’s Arrest

Toncoin is under pressure after Telegram founder’s arrest.

Glamtush reports that concerns about the future of the messaging app Telegram and associated cryptocurrencies, such as Toncoin (TON) from The Open Network, have arisen following the arrest of Pavel Durov.

The Telegram Chief Executive was detained by French authorities at Le Bourget Airport, located outside Paris, on charges of using Telegram to support illegal activity.

Durov was reportedly the subject of an inquiry due to the messaging app’s “lack of moderation.”

He could face charges in France that may affect both TON and Telegram, despite ongoing efforts to distance The Open Network brand from the messaging app.

Telegram’s infrastructure, user base, and reputation have been key factors in Toncoin’s rise. Consequently, growing doubts about the company’s future might impact market confidence in cryptocurrencies.

Toncoin’s Price Action

As of this writing, TON was trading at $5.77, down 14% from $6.77. Notably, the project’s social volume surged, peaking at about 5% in Toncoin’s social dominance, indicating the news’s impact. If bearish momentum continues, Toncoin’s price support levels could reappear at $5.25, $4.09, and $3.05. TON investors are closely monitoring The Open Network’s next moves and devising strategies. Meanwhile, traders may speculate in this environment, potentially leading to capital inflow and increased demand for direct competitors.

The TON blockchain has also expressed support for Telegram’s leader. In response to Pavel Durov’s arrest by the Air Transport Gendarmerie at Le Bourget Airport on Saturday night, Elon Musk, Tucker Carlson, and other prominent figures have reaffirmed the TON blockchain’s commitment to decentralization and free speech.

On The Open Network (TON) blockchain, Network Validators are compensated with Toncoin, the cryptocurrency used to pay transaction fees. TON raised close to $250 million in a 2022 funding round, with participation from Mask Network, FJ Labs, and MEXC Venture. Toncoin is used for payments related to TON Proxy, TON Services, and TON Storage. Major businesses such as Animoca Brands and OKX provided strategic support during the network’s inception. Additionally, Pantera Capital previously announced it had made “the largest investment ever” in TON.

Telegram, in a press release, expressed hope for a swift resolution to the issue and declared its unwavering support for its CEO. The exact charges Durov faces or whether he has been formally taken into custody remain unclear. Although there has been no official confirmation from the French government or additional information from Telegram, some reports speculate that Durov was detained due to alleged excessive moderation on the platform.

Russia has accused France of “refusing to cooperate.” The Russian embassy in Paris has requested consular access to the 39-year-old Franco-Russian businessman, who was arrested at Le Bourget Airport on Saturday for repeated encryption violations. Following Durov’s detention, the Russian embassy in Paris claimed that the French government was “refusing to cooperate” with Moscow. Durov holds dual citizenship in France and Russia.

“We insisted that his rights be upheld and that he be allowed consular contact as soon as possible, and we asked the French authorities to clarify the circumstances behind his imprisonment. The Russian embassy in Paris claimed that ‘the French side still refuses to cooperate on this issue to this day.’”

Russian Human Rights Commissioner Tatiana Moskalkova described the detention as “an attempt to shut down Telegram, an internet platform where one can learn the true events taking place in the world.” French investigators had issued a search warrant related to Durov’s encrypted messaging business, including allegations of fraud, drug trafficking, cyberbullying, organized crime, and support for terrorism. The French legal system accuses him of failing to act against his subscribers’ illegal uses of his messaging service by not moderating content and not assisting investigators.