Could Pavel Durov’s Arrest Spell the End for Toncoin?
Toncoin (TON) crashed 14% over two days following the arrest of Telegram’s CEO, Pavel Durov, in France. The cryptocurrency hit a low of $5.23 on Sunday, recovering slightly to around $5.73 by Monday. The downturn was triggered by Durov’s arrest, sparking concerns among investors.
Telegram CEO Arrested in France
Pavel Durov, Telegram’s founder and CEO, was detained by France’s National Anti-Fraud Office (ONAF) on Saturday. French authorities accused Telegram of facilitating crimes like terrorism, narcotics trafficking, and fraud. Reports confirmed that Durov was in custody, facing serious allegations about his platform’s involvement in these activities.
A source close to the investigation revealed that Telegram allowed illegal activities without proper moderation or cooperation with law enforcement. Durov’s arrest created uncertainty around Toncoin’s future, given his pivotal role and Telegram’s influence on the cryptocurrency.
Impact on Toncoin and Investor Sentiment
Durov’s arrest led to widespread investor concerns. Uncertainty about the project’s leadership and potential regulatory challenges due to Durov’s legal issues caused a sharp decline in confidence, increasing selling pressure on Toncoin.
Over the weekend, Toncoin’s price dropped sharply as the market reacted to Durov’s arrest. Investors feared potential regulatory actions against Telegram and its associated projects, compounding the bearish sentiment.
Social Media Response and Market Indicators
Following Durov’s arrest, Tesla CEO Elon Musk posted the hashtag #FreePavel on his social media platform X. The hashtag quickly gained traction, with many supporters calling for Durov’s release.
Meanwhile, data from Santiment’s Exchange Flow balance for Toncoin showed a spike in selling pressure. The balance rose from -111,280 to 251,220 from Friday to Sunday, indicating increased movement of Toncoin to exchanges for potential selling.
During this period, the TON Supply on Exchanges also increased by 8%, signaling heightened selling pressure as more tokens were moved from personal wallets to exchanges, contributing to the decline in Toncoin’s price.
