Toncoin Investors on High Alert as Pavel Durov’s Indictment Threatens Telegram’s Stability

• Toncoin could be the crypto markets’ next “Black Swan” event.
• The TON network suffered a 7-hour outage after 10 million traders began moving assets after Durov’s arrest.
• Toncoin has lost approximately $4 billion from its market cap since Aug. 25.

Telegram founder and CEO Pavel Durov remains detained in Paris as authorities allegedly investigate criminal activity on the app.

This has resulted in concerns that Telegram, The Open Network blockchain, and its native TON token are all under threat, as the messaging giant may face shutdown depending on the outcome of the ongoing investigations.

Toncoin (TON) Finished?

The detention of Telegram founder Pavel Durov has sent shockwaves through the crypto, tech, and political spheres, and many are looking to this moment as something akin to a “Black swan ” event that could bring the market to its knees.

Venture capital firms such as Pantera Capital Management, Mirana Ventures, and Animoca Brands are amongst over a dozen firms that invested heavily in Toncoin.

Notably, sources claim that Pantera poured over $100 million into Toncoin earlier in the year. Pantera has previously described TON as its largest investment yet.

Telegram’s evolution into a Web3 “super app” flush with a crypto wallet, blockchain-based games, trading bots, and other features was a huge draw.

Plus, the app was reported to have 900 million users, proving it had the potential to spur mass adoption of crypto and blockchain technologies.

However, should the many, many damning criminal allegations against Durov and Telegram stick, some fear a domino effect similar to that of Do Kwon’s TerraUSD, which brought several investment firms and the entire market down with it, could soon be on the horizon.

Willingly Arrested?

As per numerous reports, Durov had requested a meeting with Putin during the Russian leader’s state visit to Azerbaijan on Aug. 18/19, but Putin allegedly declined.

Following this, Durov flew – directly – to Paris, where many believe he knew that he would be arrested.

The Telegram boss has become somewhat outspoken against the Russian government since he and the Telegram app rose to prominence and has frequently disavowed the war in Ukraine.

Durov’s arrest has huge implications far beyond just markets and price action.

The Telegram app is a staple of Russian communications, especially for sensitive conversations. Following Durov’s arrest, the Kremlin reportedly ordered all personnel to delete all data and the app from their devices.

Durov’s fate is unknown at this point, as this could all be smoke and mirrors in an attempt to safely extradite Durov away from the Kremlin to safety, where he may prove a valuable ally in toppling the Russian war machine.

Toncoin (TON) Price

The arrest on Aug. 25 resulted in an immediate sell-off for TON, which dropped from $6.80 to $5.33 within 24 hours. This saw roughly $4 billion wiped off its market cap and now trades for $5.58.

Shaking up the nerves of TON investors even more, the TON blockchain suffered a 7-hour outage on Aug. 28.

This was due to the network being overloaded by approximately 10 million traders simultaneously executing transactions on the network.

The memory overload caused transactions to grind to a halt as validators lost consensus with the network.

It was restored after TON rallied validators to restart their nodes. If matters worsen for Telegram or Durov, another mass exodus from Telegram could cause more TON outages in the future.

About the Author

Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.

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