Telegram CEO Pavel Durov was arrested in France this Saturday, August 24. His arrest raised concerns about the messaging app’s future and related cryptocurrencies like Toncoin (TON) from The Open Network.
French authorities arrested Pavel Durov at the Bourget airport outside of Paris under allegations of facilitating criminal activities on Telegram. According to an SCMP report, Durov was under investigation due to a “lack of moderation” on the messaging app. He will face possible indictment today, which may affect Telegram and TON.
Despite ongoing efforts to separate The Open Network brand from the messaging app, Toncoin surged mainly because of Telegram’s reputation, user base, and infrastructure. Therefore, growing uncertainties related to the future of the company could affect the market’s confidence in the cryptocurrency.
Toncoin (TON) price and social dominance. Source: Santiment / Finbold (@vinibarbosabr)
Essentially, discussions related to Pavel Durov, Telegram, and The Open Network have dominated the cryptocurrency space this weekend while the price crashed, suggesting a direct relation.
Nevertheless, cryptocurrencies are difficult to predict, and further price action will depend on how independent Toncoin really is from Telegram and Durov’s leadership. Retail traders usually respond to negative news by panic selling, making the price crash.
Sometimes, the panic crash will quickly bounce up after investors better digest the not-so-negative news. However, the trend can continue if backed by solid negative fundamentals and intensify as things develop.
If the crash continues, Toncoin could revisit price support at $5.25, $4.9, and $3.5.
TON investors should now closely watch Pavel Durov’s indictment and The Open Network’s further actions to make a plan. Meanwhile, direct competitors could see capital inflow and increased demand while traders speculate in this context.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
