Investing.com – , the token pegged to The Open Network (TON), has lost approximately $3 billion in market value since Telegram Messenger LLP co-founder Pavel Durov was arrested by French police on Saturday.
The value of the token plummeted after reports emerged that Durov was detained at a Paris airport on charges of allowing drug dealers and sex offenders to operate on Telegram. The arrest is also said to be related to charges related to data privacy and violations of cryptocurrency regulations.
Toncoin price fell by as much as 25% on Sunday, hitting an all-time low of $5.24, due to panic selling following the news of Durov’s arrest. Toncoin was trading at $5.68, up less than 1% as of 06:40 ET (10:40 GMT).
The Telegram app has been key in integrating Toncoin into its ecosystem, and Durov is a central figure in the token’s story and future growth. As such, his arrest sparked a wave of panic selling among Toncoin traders.
The current drop in Toncoin price mirrors the performance of Binance’s token, which also suffered a sharp drop before recovering strongly after the legal troubles of its CEO, Changpeng Zhao (CZ), subsided.
BNB fell by about 15% prior to CZ’s ruling in April, but once the market absorbed the news, the token surged by nearly 35%. Toncoin could follow a similar trajectory, where the initial panic could eventually lead to a recovery as traders reassess the situation.
Meanwhile, The Open Network (TON) blockchain account X posted a statement regarding Durov’s arrest in France. The tweet assures users that “the TON community remains strong and fully operational.”
“As a community committed to freedom of expression and decentralization, we strongly support Pavel during this difficult time,” TON's statement reads.
Toncoin (TON) was originally developed as part of Telegram’s broader vision to create a decentralized platform that goes beyond messaging by incorporating blockchain technology into its ecosystem. TON is designed to integrate with the Telegram app, enabling features such as in-app payments, bot payments, and microtransactions, while also supporting a robust ecosystem for decentralized applications (dapps).
