The arrest of Telegram CEO Pavel Durov on August 24, 2024, has led to a significant drop in the value of Toncoin ($TON), which fell by 18.7% as of 8:45 am UTC on August 25, 2024. This sudden drop reflects growing concerns in the cryptocurrency market about the potential impact of Durov’s legal troubles on The Open Network (TON), a decentralized blockchain platform closely associated with Telegram.
Originally developed by Telegram, Open Network is a decentralized blockchain platform designed to provide a scalable and user-friendly ecosystem for decentralized applications (dApps). The platform aims to improve the efficiency and accessibility of blockchain technology and create an interconnected web of decentralized networks.
Toncoin is The Open Network’s native cryptocurrency and plays a crucial role within the ecosystem. It is used for transactions, payments, executing smart contracts, and participating in network governance. The TON blockchain, known for its unique multi-blockchain architecture, can process millions of transactions per second, ensuring scalability and avoiding network congestion. This architecture allows The Open Network to support a wide range of applications, making it a versatile platform for developers and businesses.
Despite its promising technology, The Open Network has faced challenges, especially after Telegram’s decision to withdraw from the project due to regulatory pressure. The project has been rebranded, with the cryptocurrency originally known as Gram being renamed Toncoin. The TON Foundation, a community-driven organization, now oversees the development and management of the network. However, Toncoin remains integrated with Telegram, allowing users to make commission-free crypto transfers and interact with Telegram mini-apps through the TON Wallet.
Durov’s arrest at Bourget Airport outside Paris has sparked a wave of concern. French authorities arrested Durov as part of an investigation into Telegram’s lack of moderation, which they say allowed criminal activity to go unchecked on the platform. Durov, a Russian-French billionaire, co-founded Telegram with his brother in 2013 and is a vocal advocate of privacy and freedom of expression, often defying government demands to censor content.
Telegram has become particularly influential in regions such as Russia and Ukraine, where it serves as a central platform for unfiltered content. Since the Russian invasion of Ukraine in 2022, Telegram has played a central role in disseminating information from both sides of the conflict, earning it a reputation as a “virtual battlefield.” However, this role has also led to increased attention from various governments, including those in Europe, concerned about security and misinformation.
The reaction to Durov’s arrest was not long in coming. Russian officials criticized France’s actions, drawing parallels to the criticism Russia faced in 2018 when it tried to ban Telegram. Elon Musk, the owner of X (formerly Twitter), further fueled the controversy by tweeting about the arrest and suggesting that Europe was moving toward authoritarianism.
Featured image via Pixabay
