Toncoin experienced a sharp decline, dropping 20.6% within 24 hours after the arrest of Telegram founder Pavel Durov at Le Bourget airport near Paris. The cryptocurrency, which is closely linked to the Telegram messaging app, saw its price fall to $5.3, reducing its market capitalization to $13.6 billion and placing it as the ninth-largest cryptocurrency by market cap.
Market Turbulence for Toncoin
Durov’s arrest triggered a significant market reaction, with Toncoin’s daily trading volume surging by 690% to reach $2 billion. Despite a broader market recovery on August 24, Toncoin remained under heavy selling pressure, as investors grew increasingly concerned about the potential fallout from Durov’s legal issues on the cryptocurrency’s future.
Toncoin, also known as TON (Telegram Open Network), has become increasingly integrated with Telegram, an app with nearly one billion users. The platform has positioned itself as a major player in the Web3 space, leveraging its vast user base to drive the adoption of TON.
Legal Charges and Implications
According to French media reports, the 39-year-old Russian billionaire is expected to appear in court soon, facing a range of serious criminal charges, including terrorism, drug trafficking, fraud, money laundering, and involvement in distributing child abuse content. If convicted, Durov could face up to 20 years in prison for allegedly failing to comply with France’s content moderation laws.
The arrest has sparked widespread reactions, notably from X.com owner Elon Musk, who publicly expressed support for Durov. Musk, who has often faced criticism for his own content moderation policies, took to social media to criticize Europe’s laws, which he views as a form of censorship. In a tweet, Musk mocked the situation, stating, “It’s 2030 in Europe and you’re being executed for liking a meme,” in reference to Durov’s arrest.
Content Moderation Controversy
Telegram has been under increasing scrutiny for its perceived lack of content moderation, particularly concerning far-right and neo-Nazi groups that have used the platform to organize riots and spread extremist views. The app was linked to riots in the UK earlier this month, further heightening concerns about its role in facilitating harmful content.
The French National Police’s specialized unit, OFIM, filed a criminal complaint against Durov, accusing him of complicity in Telegram’s inadequate moderation efforts regarding fraud, drug trafficking, and the distribution of child sexual abuse material.
Community Support for Durov
In response to the arrest, TON’s official account on X expressed strong support for Durov, emphasizing his commitment to freedom of speech. “We believe his efforts to promote an open and decentralized internet will continue to inspire millions,” the TON community stated on X, signaling their intention to stand by Durov during this challenging time.
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