Will the Detention of Pavel Durov Kill the Toncoin Blockchain and Its Token?
Pavel Durov, the founder of the popular messaging app Telegram, has been taken into custody. He was detained at a Paris airport due to numerous claims by French authorities, mostly concerning the operation of the messaging app and its message encryption system. Law enforcement officials believe this encryption contributes to the rise of crimes conducted via Telegram.
Unsurprisingly, this event had a negative impact on the semi-official token of the messenger, TON. Telegram users can connect a bot to access a wallet with these coins, and TON is used for various transactions directly within the app.
On August 25th, the asset lost almost 20% of its value. It also briefly fell out of the top 10 on CoinMarketCap due to the drop in market capitalization.
TONâs Value Didnât Plummet as Much as Expected
The value of the popular cryptocurrency experienced a sharp decline following the news. The lowest point reached was $5.2. However, analysts noted that TON quickly changed direction and returned to the $5.6 level. This was due to the communityâs swift response and interest in the coin, which led to a rapid buyback.
Experts also believe that as the situation develops, the assetâs price may correct further, possibly dropping below $5 per token.
Other analysts predict a gradual rise for TON, mainly because the communityâs interest in the project has reached a record high following Pavel Durovâs arrest.
The asset is attracting traders' attention, and open interest (OI) increased to $294.14 million, a level not seen since TONâs launch. Cryptocurrency market participants are taking advantage of the assetâs drop to make purchases. If the trading pressure continues, the token may emerge from the correction and reach $6.13.
