Toncoin Token Plummets $2.7B After Telegram CEO’s Shocking Detention!

Key Points:

• The digital asset linked to Telegram’s blockchain project dropped over 20% after Telegram co-founder Pavel Durov’s detention.
• Toncoin, the 10th largest cryptocurrency, traded at $5.69 but remains down 16% due to ongoing uncertainty.
• Toncoin’s potential as a “super-app” is at risk as its strong ties with Telegram face scrutiny following Durov’s arrest.

The Toncoin token, or TON, connected to Telegram Messenger LLP, finished with a staggering $2.7 billion market value decline due to the market’s fears and uncertainty from being detained by Telegram co-founder Pavel Durov.

Toncoin’s Market Decline and Recovery

Reports that Pavel Durov, the co-founder of Telegram, was detained at a Paris airport Saturday sent the Toncoin token dump by over 20%. That arrest is said to have been caused by allegations he failed to take measures to prevent the use of Telegram for criminal activities.

According to Coingecko, the Toncoin token was up to $5.63. Although it remains 17% down, it is now up 4.6% in one day from its previous value amidst continuous turbulence surrounding Durov.

Read more: Telegram Founder Pavel Durov Arrested In France, TON Slides Over 18%

Telegram’s Super-App Ambitions at Risk

This Open Network blockchain touts a partnership with Telegram, aiming at onboarding various services such as in-app payments and gaming, leveraging the user base of 900 million monthly users that Telegram commands.

The deal has added to speculation that Telegram may evolve into a “super-app” like WeChat in China. Even though the project says it is independent of Telegram, close links have made Toncoin one of the most discussed crypto assets. In May, Pantera Capital Management LP stated that its purchase of Toncoin was its most significant investment ever.

But Durov, still in charge at Telegram, is far from giving up. The company issued a statement touting its compliance with European Union laws, including the Digital Services Act, and that Durov himself has “nothing to hide.”

According to Richard Galvin, a co-founder of DACM, which invested in Toncoin tokens earlier this year, Durov’s detention has not entirely determined how bad the damages are for Telegram. He further said that the recent reaction by the market has already baked in this uncertainty.