Pavel Durov, the CEO and founder of Telegram, was arrested on Saturday at Le Bourget Airport in France, sparking significant concern in the cryptocurrency community.
His arrest is linked to the messaging app’s insufficient moderation, which allegedly allowed criminal activities, including terrorism, narcotics trafficking, and fraud, to flourish unnoticed on the platform.
Durov, who was returning from a trip to Azerbaijan, was apprehended by French authorities. The arrest stems from ongoing investigations into the app’s role in facilitating illegal activities by its users.
JUST IN: Telegram Founder & CEO Pavel Durov arrested in France. pic.twitter.com/NtJmtJewm0
— Watcher.Guru (@WatcherGuru) August 24, 2024
Telegram has faced scrutiny for its lack of moderation, which reportedly enabled the proliferation of criminal content without detection. French prosecutors have filed charges against Durov, accusing him of indirectly aiding in various illegal activities through the platform.
Telegram’s Response and User Impact
Following Durov’s arrest, Telegram took to X (formerly Twitter) to express disbelief and concern. The platform, which recently surpassed 950 million users, is widely used within the cryptocurrency community.
Telegram abides by EU laws, including the Digital Services Act — its moderation is within industry standards and constantly improving. Telegram's CEO Pavel Durov has nothing to hide and travels frequently in Europe. It is absurd to claim that a platform or its owner…
— Telegram Messenger (@telegram) August 25, 2024
Many users engage with built-in “mini-apps” to play crypto-based games, with *Hamster Kombat* being the most popular, attracting over 300 million players in recent months. Despite the turmoil, Telegram announced plans for a token giveaway in an attempt to maintain user engagement during this challenging period.
Impact on Toncoin and Market Reactions
The arrest has sent shockwaves through the cryptocurrency market, particularly affecting Toncoin, a digital asset originally developed by Telegram. Following the news, Toncoin’s value dropped by 15%, reflecting investor unease.
At the time of the press, Toncoin was trading at approximately $5.29, showing signs of modest recovery with a 3.12% increase on the day.
Toncoin, initially named the Telegram Open Network, was developed by Telegram before the company ended its involvement due to a legal dispute with the U.S. Securities and Exchange Commission (SEC) in May 2020.
Despite Telegram’s withdrawal, the project continued under the direction of independent developers and blockchain enthusiasts, and it was rebranded as The Open Network (TON). The TON Foundation aims to empower over 500 million users by 2028, enabling them to control their digital identities, data, and assets while fostering a decentralized ecosystem within the app.
Toncoin’s recent market performance has been volatile, with a downward trend observed throughout August 26th.
Source: CoinMarketCap
The figure opened the day at $5.88 and went on to fall to about $5.35 by the close of trading. Its price fell by $0.53, reflecting selling pressure that has been existing in the market, probably hyped up by information concerning Durov’s arrest.
On one hand, the MACD (Moving Average Convergence Divergence) indicator is showing a bearish crossover which implies a potential downside momentum; on the other hand, RSI (Relative Strength Index) is almost in a bearish zone around 35.35 near oversold territory.
Conversely, bearing in mind both negative MACD and low RSI readings suggests that Toncoin has been under selling pressure but may be nearing an ultimate bottom if oversold conditions were to trigger a bounce back response.
Source: TradingView
Toncoin (TON) has experienced notable volatility this year. Its price soared to a peak around $8.00 earlier this year before undergoing a substantial pullback. Currently, TON is trading at approximately $5.29, showing a modest recovery with a 3.12% increase on the day. Despite this short-term uptick, technical indicators suggest continued caution in the near term.
The post Toncoin Price Prediction August 26: Pavel Durov’s Arrest Tanks Toncoin 15%, But Will Recovery Hold? appeared first on Coinfomania.
