Toncoin plunged 20% after the Telegram CEO’s arrest and a 3-hour network trading outage.
Toncoin (Ton) has experienced a rough ride in the past five days following the arrest of Telegram founder and CEO Pavel Durov in Paris. Due to the strong connection between Toncoin and Telegram, the market reacted strongly, causing the price of Ton to drop by more than 20% since the closure of the trading halt in the Ton network. This sudden decline has left many investors worried and skeptical about the future of the token.
TON Blockchain sees transaction disruption
A ton block chain known for its speed and reliability has recently experienced an unexpected stoppage. According to PeckShieldAlert, a blockchain security and data analytics company, the Ton network stopped processing transactions for about three hours before completely halting normal operations.
This sudden stop has caused various speculations in the society. Some think this could be due to a technical glitch or routine maintenance, while others worry it could be a more serious problem.
The lack of a clear explanation from the developers of TON has added to the uncertainty, causing users to worry and wait for more information.
The CEO of Telegram was arrested in France
Pavel Durov, the founder and CEO of Telegram, was arrested by French authorities on August 24 and did not initially say why. The French government later said Durov's arrest was part of an investigation into a man accused of child sexual abuse (CSAM), money laundering, drug trafficking, selling hacking tools and non-cooperation with law enforcement, among other crimes.
Telegram's CEO responded by saying, “There is nothing to hide.” The company says it always follows industry standards for managing content. However, Durov's arrest makes French authorities believe that Telegram is not doing enough to stop illegal activities on the platform.
Tonkoin at the restocking level
After the arrest of Telegram founder Pavel Durov in France, Toncoin has been on a steep decline, dropping from $7 to $5.30. This drop caught the attention of many analysts and traders who saw this as an opportunity to buy Toncoin at a lower price.
Coin Signals, a group of crypto analysts known on X, has recently suggested that Toncoin may be on the verge of a rally. They believe that buying at the current price will bring a return of 3x to 5x if the market improves.
They think the drop in prices following Durov's arrest may have been overblown. This can create a great opportunity for investors who are willing to take some risks. To date, Toncoin is trading at $5.3, which is down nearly 2% in the last 24 hours, with a market value of $13.4 billion.
