Has Telegram’s Empire Crumbled Overnight? With Its Boss Arrested and Telegram Coin Losing Billions, What Happens Next? H
The entire TON system fell more than 16% in value, evaporating billions of dollars in capitalization after news of the arrest of Telegram’s founder and CEO in France.
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| Vi yesc P a vandl D inr thev b you byest g iyes hern h hUhliveng Dunmarketablen hyes s inh thoni tiyesn sstain. HERnh: |
The Guardian , citing information from the French channel TF1, said Pavel Durov, billionaire co-founder and CEO of the Telegram messaging app, was arrested at Bourget airport outside Paris on the evening of August 24. After the event, the communication tool continued to operate normally. However, cryptocurrency projects in the Telegram ecosystem were heavily affected, with prices falling that morning.
According to data from CoinMarketCap , Toncoin (TON) fell more than 16% to around $5.5 /coin just 2 hours after the news of Pavel Durov’s arrest was revealed. At one point, the total capitalization of the project reached below $13 billion .
In addition to Toncoin, other projects built on this ecosystem also evaporated hundreds of millions of USD. Meanwhile, major cryptocurrencies such as Bitcoin, Ethereum, and BNB did not fluctuate much during the same period.
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| Telegram cryptocurrency fell sharply on the morning of August 25. Photo: CoinMarketCap. |
Tap-to-Earn GameFi Notcoin (NOT), which runs on TON, fell about 17% in the same period, with its market cap falling below $1 billion . Povel-based meme Durev (DUREV) fell as much as 20%.
Overall, the market capitalization of TON Ecosystem decreased by more than 15% while the trading volume increased by more than 300% after the bad news appeared. Assets in the GameFi and Memecoin groups reacted more strongly and fluctuated greatly when there was an incident.
TON (The Open Network, formerly Telegram Open Network) is a cryptocurrency project built by attaching to a messaging application. Launched in 2018, it raised more than 1.7 billion USD but it did not make much of an impression on the market. By 2020, the project was banned by the US Securities and Exchange Commission (SEC) for violating the country’s service regulations.
Pavel Durov later announced that Telegram was withdrawing from TON. But in reality, the project still serves and depends on the messaging app. Blockchain is integrated for NFTing usernames and auctions, and digital wallets are integrated into apps that support TON’s sticker packs or GameFi.
The TON system is of interest to many Vietnamese investors, because the aforementioned messaging app is widely used in this group. Previously, the community was excited about the news of Dogs, a memecoin of the TON system, rewarding users with activities on the messaging app. Many people have bought large numbers of accounts to exchange for tokens, hoping that being listed on the Binance exchange will help it increase in price.
However, the news of Telegram CEO’s arrest right before Dogs’s listing will affect the sale, similar to the price decline of TON cryptocurrency.
Information about digital currencies in the article is not investment advice from Tri Thuc – Znews . Cryptocurrency investment activities are not recognized and protected by Vietnamese law. Digital currencies always have many potential financial risks.
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The recent arrest of Telegram’s boss has sent shockwaves through the tech and cryptocurrency communities, raising serious questions about the future of the messaging platform and its associated cryptocurrency, Telegram Coin. Telegram has long been a major player in secure messaging, with millions of users worldwide, but this latest development casts a shadow over its operations.
The arrest comes amidst allegations of financial misconduct and regulatory violations, which have led to a rapid and severe devaluation of Telegram Coin, wiping out billions of dollars in market value almost overnight. This collapse has left investors reeling, with many questioning the stability and viability of cryptocurrencies tied to specific platforms. The sudden downfall of Telegram Coin serves as a stark reminder of the volatility and risks associated with the crypto market.
Moreover, this incident raises broader concerns about the regulatory environment surrounding digital currencies and the potential for government crackdowns on platforms perceived as operating outside legal frameworks. The arrest could also have a chilling effect on other tech entrepreneurs, who may now face increased scrutiny and pressure from authorities. As Telegram grapples with the fallout, the future of the platform and its cryptocurrency remains uncertain, leaving users and investors in a state of anxiety and uncertainty.
