Toncoin drops 20% amid Telegram co-founder’s detention

Toncoin, the digital asset associated with The Open Network (TON), has experienced a significant decline in market value, losing approximately $2.7 billion after Telegram co-founder Pavel Durov was detained in Paris.

The token plummeted more than 20 per cent following reports that Durov was taken into custody on Saturday, with accusations of failing to take measures against criminal activities on the Telegram platform.

As of 7:25 am London time on Monday, Toncoin was trading at $5.67, marking a 16 per cent drop from previous levels. Despite this, the token retains a substantial market value of around $14.4 billion.

The Open Network, which partners with Telegram’s 900 million monthly users, aims to facilitate in-app payments and gaming services. The project has gained prominence due to its association with Telegram, a popular platform in the crypto community. Earlier this year, the value of assets locked on the TON blockchain reached $1.1 billion but has since decreased to $667 million.

Durov, also Telegram’s CEO, faces scrutiny under European laws, and his detention has raised concerns about the potential long-term effects on Telegram and its associated projects. The market reaction reflects uncertainty about how this development might impact Telegram’s competitive position and, consequently, Toncoin’s value.

Despite the turmoil, Toncoin has garnered significant venture backing, with investments from firms like Pantera Capital Management LP. The project’s future will hinge on the resolution of Durov’s legal issues and the broader implications for Telegram’s operations.