The founder and CEO of Telegram Pavel Durov has been arrested in France.
Telegram initially created TON before handing it over to the TON foundation.
What does this mean for TON?
The arrest had a significant negative impact on TON, which is closely associated with Telegram. Following Durov's arrest, the price of Toncoin plummeted by 15%, leading to a market cap loss of approximately $2.7 billion. The sharp decline reflects widespread investor concerns over the future of TON, especially considering Durov's integral role in the cryptocurrency's success and the broader Telegram ecosystem.
Although the price showed some signs of stabilisation, the market remains cautious, with uncertainty surrounding Durov's legal situation and its potential long-term effects on both TON and Telegram.
Facts around the arrest and how it affected TON
Durov was arrested in Paris on August 24, 2024, upon arrival at Le Bourget Airport. French authorities detained him as part of an investigation into his alleged failure to prevent the use of Telegram for illegal activities, including drug trafficking and the distribution of child exploitation material. Durov, who holds dual French and Russian citizenship, is being held for questioning, with his detention extended by a judge.
French officials insist that the arrest is not politically motivated, despite criticism and concerns raised by Russia and some public figures.
TON Technical Analysis
TON Technical Analysis
The chart above is a daily outlook on TON. TON is approaching some key levels of support. The first support region is around the current price. This region consists of both the 200 exponential and simple moving averages as well as the first green support line at $5.43.
If this first support fails, then the 0.382 Fibonacci as well as the second green support line provide the next level at $4.87.
Both of these areas should be key bounce zones for TON and provide some opportune levels to add to your TON holdings.
We have seen this before
We have seen this before
This is nothing new to the crypto space, we have seen some of the biggest crypto founders arrested. Most famously, CZ of Binance. The news of CZ’s arrest on April 30 2024 led to a 10% fall in BNBs price within two days. Once the selling pressure had exhausted itself, BNB rallied 34% over the next 36 days.
Both BNB and TON are top 10 coins and have extremely loyal communities. These strong communities help support these coins during major sell offs and drive the prices back up once selling stops.
Whilst BNB had a successful rally following CZ’s arrest, it is best to stay cautious when it comes to TON and rotate into Bitcoin until we get more clarity on the situation.
The TON community, along with other prominent crypto users and Elon Musk, have rallied in support of Durov on X.
Key Takeaways
Key Takeaways
- TON remains strong and fully operational with one of the largest communities in the entire crypto space
- A cautionary approach should be adopted with TON, look to rotate into Bitcoin whilst there is major uncertainty surrounding the situation.
- Great prices to DCA into, communities are what drives the price of a coin.
Yes, the founder helps, but without a community the coin is worthless. These events have proven to strengthen the individual coins community but also rally the entire crypto community to stand behind them.
Written by Alexandar Artis
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