Investing.com – The Open Network (TON)-related token has lost about $3 billion in market value since Telegram Messenger LLP co-founder Pavel Durov was arrested by French police on Saturday.
The token’s value plummeted after reports emerged that Durov was detained at a Paris airport on suspicion of enabling drug dealers and sex offenders to operate on Telegram. The arrest is also linked to allegations of data privacy and violating cryptocurrency laws.
Toncoin fell as much as 25% on Sunday to a historic low of $5.24 as panic selling gripped the market following news of Durov’s arrest. Toncoin was trading at $5.68, up less than 1%, by 06:40 ET (10:40 GMT).
The Telegram app played a key role in integrating Toncoin into the ecosystem, and Durov was a central figure in the token’s history and future growth. As such, his arrest caused a wave of panic among Toncoin traders.
The current decline in Toncoin price mirrors the performance of the Binance token, which also saw a pointed decline before rebounding strongly following the resolution of the legal troubles of its CEO, Changpeng Zhao (CZ).
BNB fell about 15% before the CZ ruling in April, but as the market absorbed the news, the token surged almost 35%. The toncoin could follow a similar trajectory, with the initial panic potentially leading to a recovery as investors reassess the situation.
Meanwhile, the X account of blockchain The Open Network (TON) has released a statement about Durov’s arrest in France. The tweet assures users that “the TON community is still strong and fully operational.”
“As a community committed to free speech and decentralization, we stand firmly behind Paul in these difficult times,” TON said in a statement.
Toncoin (TON) was originally developed as part of Telegram’s broader vision to create a decentralized platform that went beyond messaging by introducing blockchain technology into its ecosystem. TON was designed to integrate with the Telegram app, enabling features like in-app payments, bot payments, and micropayments, as well as supporting a sturdy ecosystem for decentralized applications (dapps).
