- TON has seen a 20% drop in the past 24 hours, while the overall cryptocurrency value plunged by 38%.
- The arrest of Telegram’s CEO Pavel Durov has significantly shaken the cryptocurrency market, leading to drastic devaluations in associated digital assets.
In an unsettling development for the cryptocurrency sector, Pavel Durov, the CEO of the popular messaging app Telegram, has been arrested under serious allegations including terrorism, drug trafficking, fraud, and money laundering. This news has sent shockwaves through the market, particularly affecting cryptocurrencies associated with Telegram’s initiatives, notably Toncoin (TON) and Notcoin (NOT).
Market Impact
Toncoin, the native cryptocurrency of The Open Network (TON), experienced a significant decline, plummeting by 17% on the day of the announcement, with its price dropping from $6.8 to $5.6. This downturn reflects a broader sentiment of uncertainty and risk aversion among investors, culminating in a staggering 38% reduction in the Total Value Locked (TVL) within the TON network. TVL, a critical measure in the Decentralized Finance (DeFi) ecosystem, indicates the total value of digital assets deposited within a protocol or network.
The current TVL has diminished from $508 million to $311 million, according to DeFiLlama, signaling a substantial retreat in investor confidence.
Despite Telegram officially distancing itself from TON in 2020, the network continues to thrive under the stewardship of the TON Foundation. This independent developer community is actively utilizing the open-source technology originally crafted by Telegram. The network’s capabilities to execute smart contracts and host a myriad of applications, from wallets to video games, remain intact and are pivotal to its utility and appeal.
Broader Effects on Related Digital Assets
The arrest has not only impacted Toncoin but also Notcoin, another digital asset associated with the TON network. Notcoin, particularly used in a TON-network-hosted game, rewards players with NOT tokens for completing in-game actions like tapping on a golden coin on the screen. The value of Notcoin has seen a 19% decline within 24 hours, falling from $0.012 to $0.0094, as per the latest charts from TradingView.