Toncoin Plunges 20% After Telegram CEO’s Arrest & 3-Hour Network Transaction Halt

The post Toncoin Plunges 20% After Telegram CEO’s Arrest & 3-Hour Network Transaction Halt appeared first on Coinpedia Fintech News

Toncoin (TON) has experienced a rough ride over the past five days after the arrest of Telegram’s co-founder and CEO, Pavel Durov, in Paris. Due to the strong connection between Toncoin and Telegram, the market reacted sharply, causing TON’s price to fall by more than 20% since the arrest. Apart from this Ton has seen halt of network transaction for more than 4 hours. This sudden decline has left many investors worried and unsure about the token’s future.

TON Blockchain Faces Transaction Halt

The TON blockchain, known for its speed and reliability, recently experienced an unexpected halt. According to PeckShieldAlert, a blockchain security and data analytics company, the TON network stopped processing transactions for three hours straight, causing a complete pause in its normal operations.

This sudden stop has led to various speculations in the community. Some think it might be due to a technical glitch or routine maintenance, while others worry it could be a more serious problem. 

The lack of a clear explanation from TON’s developers has added to the uncertainty, leaving users concerned and waiting for more information.

Telegram CEO Arrested in France

Pavel Durov, the founder and CEO of Telegram, was arrested on August 24 by French authorities, who did not initially provide a reason for the arrest. Later, the French government stated that Durov’s arrest was part of an investigation related to someone accused of sharing child sexual abuse material (CSAM), money laundering, drug trafficking, selling hacking tools, and not cooperating with law enforcement, among other crimes.

Telegram has responded by saying that its CEO has “nothing to hide.” The company has always claimed that it follows industry standards for moderating content. However, Durov’s arrest suggests that French authorities believe Telegram is not doing enough to stop illegal activities on its platform.

Toncoin In Reaccumulation Phase

Following the arrest of Telegram founder Pavel Durov in France, Toncoin experienced a sharp decline, falling from $7 to its current price of $5.3. This drop has caught the attention of many analysts and traders, who see this as an opportunity to buy Toncoin at a lower price.

Coin Signals, a well-known group of crypto analysts on X, recently suggested that Toncoin could be in a reaccumulation phase. They believe that buying at the current price could lead to a 3x to 5x return if the market improves.

They think that the price drop following Durov’s arrest might have been an overreaction. This could create a good opportunity for investors who are willing to take on some risk. As of now, Toncoin is trading at $5.3, showing a nearly 2% drop in the last 24 hours, with a market cap of $13.4 billion.