The arrest of Telegram CEO Pavel Durov in France on Saturday, August 25, 2024, appears to influence the crypto market, especially the popular messaging app linked-cryptocurrency, Toncoin (TON).
According to CoinGlass data, following Durov’s arrest, TON experienced a sharp drop, resulting in a 32% surge in open interest to $303.09 million as traders swiftly reacted to the news. TON is currently trading at $5.48, marking a significant 15% decline since August 24—the day of the arrest.
Durov was reportedly arrested as part of a preliminary investigation into alleged offences related to how Telegram was used in criminal activities. He expected to remain in custody until Wednesday, August 28.
According to CoinMarketCap, despite Toncoin’s independence from Telegram, market perceptions still tie it closely to the platform, reflecting lingering connections from past initiatives like the GRAM ICO.
In response to the unfolding events, The Open Network (TON) released a statement emphasizing the community’s resilience, stating that
“Following the recent news related to the Telegram’s founder Pavel Durov, we want to assure everyone that the TON community remains strong and fully operational.”
They also launched the #DigitalResistance #FREEDUROV movement to advocate for privacy and free speech rights.
Opinions among traders about the impact of Durov’s potential release are divided, with varying predictions on the timeline. Some anticipate a rebound, while others remain cautious, echoing the sentiment of pseudonymous trader Daan Crypto Trades, who advised caution in market positions.
Anup Dhungana wrote in an X post that:
“From a fundamental perspective, if Durov is released after facing interrogation and potential international objections, a quicker-than-expected price rebound could occur.”
Meanwhile, industry figures like Ethereum co-founder Vitalik Buterin and Tim Kravchunovsky have raised concerns about government overreach and privacy crackdowns, highlighting the broader implications of Durov’s arrest.
Kravchunovsky reportedly stated that
“the French authorities risk positioning themselves as an enemy of free speech and decentralization — the core values of the Web3 ecosystem”
because of the arrest.
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