Telegram CEO Pavel Durov was arrested in France on Saturday, August 24. His detention raised concerns about the future of the messaging app and related cryptocurrencies such as The Open Network’s Toncoin (TON).
French authorities arrested Pavel Durov at Bourget Airport outside Paris on charges of supporting criminal activities on Telegram. According to a SCMP Durov has reportedly been investigated for “lack of moderation” of the messaging app and may be charged today, which could have implications for Telegram and TON.
Despite ongoing efforts to separate The Open Network brand from the messaging app, Toncoin surged largely due to Telegram’s reputation, user base, and infrastructure, so growing uncertainties about the company’s future could affect market confidence in the cryptocurrency.
X’s official TON account has been made public to reassure the community that despite this news, the company remains strong and true to its principles.
Toncoin (TON) Price Analysis and Prediction on Telegram Arrest News
At the time of writing, TON was trading at $5.66, down 16% in 24 hours from its price of $6.74. Notably, social volume related to the project increased, causing Toncoin’s social dominance to peak at 4.86%, confirming the impact of the news.
Finbold obtained the social data from Santiment‘S Sanbase Pro Indicator that is significantly high for a project the size of TON.
Essentially, discussions surrounding Pavel Durov, Telegram, and The Open Network dominated the cryptocurrency space this weekend while the price crashed, suggesting a direct connection.
Still, cryptocurrencies are difficult to predict, and future price action will depend on how independent Toncoin really is from Telegram and Durov’s leadership. Retail traders usually react to negative news with panic selling, which causes the price to crash.
Sometimes a panic crash occurs after investors have better digested the not-so-negative news. However, the trend can continue if supported by solid negative fundamentals and strengthen as it moves forward.
If the decline continues, Toncoin could revisit the price support at $5.25, $4.9, and $3.5.
TON investors should now closely monitor the indictment of Pavel Durov and further actions by The Open Network to devise a plan. In the meantime, direct competitors may see capital inflows and increased demand while traders speculate on the matter.
Disclaimer: The content of this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.
