Pavel Durov’s Arrest Sparks 22% Toncoin Decline, But What’s Next for TON?

Pavel Durov, founder of the popular messaging app Telegram, was arrested in France on August 25, an event that has triggered reactions from crypto assets such as Toncoin (TON).

Durov’s arrest at an Airport near Paris followed a warrant issued by a special police unit, OFMIN. Allegations point to Telegram’s failure to combat illegal activities such as drug trafficking, child pornography, and crypto fraud on its platform.

Toncoin Faces a Market Decline

In the aftermath of Durov’s arrest, Toncoin (TON), the native cryptocurrency of The Open Network, saw a sharp decline in value. According to CryptoQuant, the price of Toncoin dropped by over 22%, falling from $6.8 to $5.2. This decline came despite the network’s continuous operation. 

Open interest for TON futures surged by 80%, rising from $200 million to $360 million amid a shift in trader sentiments. Notably, the OI-weighted funding rate chart revealed a predominantly bearish market environment from May through August 2024. Despite this, the indicator has turned positive, signaling a possible shift in market trends.

Market Volatility and Support Levels

Toncoin’s market has experienced high volatility throughout 2024, particularly peaking in mid-May. The 30-day high for the cryptocurrency saw a steep increase earlier in the year but has been declining after the arrest. In contrast, the 30-day low has stabilized after a fall from its July high post Durov’s arrest. 

Screenshot 2024 08 27T132205310Screenshot 2024 08 27T132205310
TON 30D High and Low | CryptoQuant

The volatility indicators suggest that the market may be entering a consolidation phase, as fluctuations in price movements have diminished over recent weeks. Notably, alerts for low volatility have become more frequent.

Community Response Amid Uncertainty

In response to Durov’s arrest, the TON community issued a public statement emphasizing its continued strength and operational capacity.

The statement, shared on TON’s X page, highlighted the community’s commitment to the values of freedom of speech and decentralization, expressing support for Durov during this period.

The group affirmed that their mission remains unchanged, and that the community will continue its work, encouraging unity and resilience.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Source: https://thecryptobasic.com/2024/08/27/pavel-durovs-arrest-sparks-22-toncoin-decline-but-whats-next-for-ton/?utm_source=rss&utm_medium=rss&utm_campaign=pavel-durovs-arrest-sparks-22-toncoin-decline-but-whats-next-for-ton