Crypto: Toncoin collapses by 20% after Durov's arrest

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

Crypto: Toncoin plummeting after the arrest

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

A real hemorrhage for the TON crypto, whose market capitalization fell from more than $17 billion to about $13.4 billion, before stabilizing around $14 billion.

Crypto analysts expect Toncoin to continue to dive if the price breaks the support at $5.25. If this happens, the token could fall to $4.72, thus confirming a dreaded ‘head and shoulders’ bearish pattern.

A scenario that investors fear even more as confidence in the crypto has been severely shaken by recent events. With Durov in hot water, TON risks plunging even further.

Telegram: in the heart of the turmoil, TON wavers

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 link to Telegram is not reassuring at the moment, especially after Durov’s arrest in Paris, accused of turning a blind eye to illegal activities flourishing on his network.

The consequences were swift, and even Notcoin (NOT), another crypto linked to TON, saw its price plunge by 24%, dropping from $0.012 to $0.0091. The market capitalization of this crypto fell 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.