Pavel Durov, founder of the popular messaging app Telegram, was arrested in France on August 25, an event that has triggered reactions from crypto assets such as Toncoin (TON).
Durov’s arrest at an Airport near Paris followed a warrant issued by a special police unit, OFMIN. Allegations point to Telegram’s failure to combat illegal activities such as drug trafficking, child pornography, and crypto fraud on its platform.
Toncoin Faces a Market Decline
In the aftermath of Durov’s arrest, Toncoin (TON), the native cryptocurrency of The Open Network, saw a sharp decline in value. According to CryptoQuant, the price of Toncoin dropped by over 22%, falling from $6.8 to $5.2. This decline came despite the network’s continuous operation.
Pavel Durov's Arrest. What's next for $TON?
"Here are the three most significant changes in the data:
– The price dropped from $6.8 to $5.2, representing a decline of over 22%.
– The network (master and workchains) are normally producing blocks.
– Open Interest increased… pic.twitter.com/wZrKobOHfa
— CryptoQuant.com (@cryptoquant_com) August 26, 2024
Open interest for TON futures surged by 80%, rising from $200 million to $360 million amid a shift in trader sentiments. Notably, the OI-weighted funding rate chart revealed a predominantly bearish market environment from May through August 2024. Despite this, the indicator has turned positive, signaling a possible shift in market trends.
Market Volatility and Support Levels
Toncoin’s market has experienced high volatility throughout 2024, particularly peaking in mid-May. The 30-day high for the cryptocurrency saw a steep increase earlier in the year but has been declining after the arrest. In contrast, the 30-day low has stabilized after a fall from its July high post Durov’s arrest.
The volatility indicators suggest that the market may be entering a consolidation phase, as fluctuations in price movements have diminished over recent weeks. Notably, alerts for low volatility have become more frequent.
Community Response Amid Uncertainty
In response to Durov’s arrest, the TON community issued a public statement emphasizing its continued strength and operational capacity.
Statement from the TON Community
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.
As a community committed to freedom of speech and decentralization, we stand firmly…
— TON 💎 (@ton_blockchain) August 24, 2024
The statement, shared on TON’s X page, highlighted the community’s commitment to the values of freedom of speech and decentralization, expressing support for Durov during this period.
The group affirmed that their mission remains unchanged, and that the community will continue its work, encouraging unity and resilience.
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