Crypto: Toncoin Collapses by 20% After Durov's Arrest

The arrest in France of Telegram CEO Pavel Durov sent shockwaves through the crypto world, hitting Toncoin (TON) hard. This setback did not spare this crypto, closely tied to the image of its creator, suffering a steep 20% drop. In the face of this situation, the market is questioning the future of TON, now linked to Durov’s fate.

Crypto: Toncoin in free fall after the arrest

The arrest of Telegram’s CEO for pedocriminality in France has already had its effects. Indeed, on August 24, Toncoin’s price plunged by 20%, dropping from $7 to $5.31 in the blink of an eye. This abrupt fall follows the arrest in France of Pavel Durov, the CEO of Telegram, accused of lax moderation of illegal content on his platform.

A true hemorrhage for the crypto TON, whose market capitalization dropped from over $17 billion to around $13.4 billion, before stabilizing around $14 billion.

Crypto analysts expect Toncoin to continue diving if the price breaks the support at $5.25. If this happens, the token could drop to $4.72, confirming a formidable « head and shoulders » bearish pattern.

A scenario investors dread, especially since confidence in the crypto is strongly shaken by recent events. With Durov in hot water, TON risks diving even further.

Telegram: at the heart of the turmoil, TON teeters

The fall of Toncoin shows how much this crypto is tied to Telegram’s fate. Originally developed by the platform, TON is now under the control of the TON Foundation. However, this kinship with Telegram is not reassuring at the moment, especially after Durov’s arrest in Paris, accused of turning a blind eye to illicit activities rampant on his network.

The consequences were quick to follow, and even Notcoin (NOT), another crypto linked to TON, saw its price plunge by 24%, from $0.012 to $0.0091. The market capitalization of this crypto dropped from $1.2 billion to less than $950 million.

Telegram, once a pillar for these cryptos, is now becoming a risk factor. The market is waiting to see if Toncoin can rebound by crossing the 20-day exponential moving average at $6.34, a crucial threshold to reverse the bearish trend.

The arrest of Pavel Durov has sent shockwaves through the cryptosphere, and even President Macron has finally reacted. For Toncoin, the future seems uncertain.