Toncoin Price Crash: The Story Behind Telegram CEO’s Arrest and Market Impact

You probably know that Toncoin’s value plummeted by 20% recently, but what triggered this significant drop? The answer lies in the unexpected arrest of Telegram CEO Pavel Durov in France. As the founder of Telegram and a key figure in the Toncoin community, Durov’s legal troubles have raised serious regulatory concerns about the platform. 

With Toncoin’s price crashing from $6.7 to $5.6, investors are on edge. But, as usual, there’s more to this story than meets the eye. To understand the full implications of this event, you’ll need to explore the details behind Durov’s arrest and its impact on the cryptocurrency market. That’s what this article aims to help with.

Key takeaways

• 20% price drop. Toncoin’s price dropped from about $6.7 to $5.6 after Telegram CEO Pavel Durov was arrested.
• Arrest impact. The arrest caused worries about legal issues, which hurt Toncoin’s growth and caused its value to decrease.
• Price glitch. A mistake on CoinMarketCap showed a huge 94% drop in Toncoin’s price, which scared investors, but it was quickly fixed.
• Investor confidence. The arrest made investors lose trust, pushing the price down from $6.7 to $5.7 as many people started selling.
• Regulatory concerns. Ongoing legal issues with Telegram are affecting how people see Toncoin. This makes its price more unstable.

Toncoin price crash explained

Toncoin faced a severe test of its resilience. This was due to a considerable event: the arrest of Telegram CEO Pavel Durov in Paris.

This abrupt decline was a direct response to Durov’s arrest. The value of Toncoin, including its conversion rate to USD (or Toncoin to dollar), quickly became a topic of discussion among investors.

The Toncoin price crash led to a drop in market cap to approximately $14 billion. This raised concerns about investor trust and market sentiment. The increased trading volume indicated heavy selling pressure. Key support levels, including the 200-day and 50-day moving averages, were broken.

This price fluctuation wasn’t isolated to Toncoin. It was part of a broader trend across major cryptocurrencies, and it showed the market’s sensitivity to leadership changes and regulatory developments. The arrest of Durov in France served as a catalyst, or trigger for this downturn. Once again, we could see how external events can considerably influence cryptocurrency prices.

Pavel Durov’s arrest details

Telegram CEO Pavel Durov was arrested at Le Bourget Airport in France. This incident aligns with a preliminary police investigation into the platform’s failure to prevent criminal activities. This increased concerns about Toncoin’s future.

Durov’s arrest was anticipated to lead to a possible indictment shortly after the event. Obviously, this made the volatility in Toncoin’s valuation and investor sentiment even worse.

Before the crash, Toncoin had been attracting increased interest due to Telegram’s integration of crypto mini-games and zero transfer fees for users.

However, Durov’s arrest greatly altered this trajectory, leading to a sharp decline from approximately $6.7 to around $5.6 per TON within 24 hours. After an additional 48 hours, it dropped even further down to $5.1.

The incident shows the close relationship between Toncoin’s value and developments surrounding Telegram, particularly those that involve its leadership.

As a result, the market reacted negatively to the news, and the price followed.

Durov’s arrest and its repercussions on Toncoin’s price serve as a stark reminder of the volatility in the crypto market.

Toncoin price indexing glitch

On September 3, 2024, a sudden and drastic 94% drop in Toncoin’s price was reported on CoinMarketCap. Understandably, this caused widespread alarm among traders and investors. You might’ve been among those who witnessed the Toncoin price plummet from around $5.60 to $0.30.

It was later clarified that this dramatic price drop wasn’t a genuine market crash but rather a price indexing glitch on CoinMarketCap.

You should be aware that such glitches, even if they aren’t real, can have significant impacts on market sentiment. This is especially true if they coincide with important events. In this case, the glitch occurred shortly after Telegram founder Pavel Durov’s arrest, which had already led to a 20% decline in Toncoin’s value.

The incident raised questions about the reliability of crypto price tracking platforms. Fortunately, the glitch was quickly resolved, and Toncoin’s price reverted to normal shortly after detection.

This incident should be a reminder to always verify information through multiple sources to avoid reacting to false market signals.

Impact on market sentiment

The price indexing glitch on CoinMarketCap may have been quickly resolved, but its impact was still felt, especially considering the timing coincided with Durov’s arrest.

The arrest triggered immediate panic in the cryptocurrency market, causing Toncoin’s price to plummet. Then, to make things worse, the price indexing glitch happened. It was a perfect storm. Lots of investors were questioning how to sell Toncoin quickly amidst the market volatility

Key points that highlight the impact on market sentiment include:

• Immediate market reaction: Toncoin’s price dropped by 20% in 24 hours following Durov’s arrest.
• Loss of investor confidence: The valuation dropped from $6.7 to $5.6, reflecting decreased trust.
• Market capitalization fall: Toncoin’s market cap fell to $14 billion.
• Increased trading volume: High selling pressure indicated a negative shift in market sentiment.
• Broader market volatility: Toncoin’s decline underscored concerns about investor trust in projects linked to regulatory scrutiny.

Toncoin project overview

Let’s talk a little bit about what TON is all about.

Launched in 2021 as part of The Open Network (TON) blockchain, Toncoin aims to deliver speed, security, and scalability, capable of handling millions of transactions per second.

It operates on a Proof-of-Stake (PoS) consensus mechanism. It allows for transaction speeds of less than one second and enables users to participate in governance and earn rewards through staking.

Here are some key highlights about Toncoin:

• High-speed transactions: Toncoin can process millions of transactions per second, making it highly efficient.
• Proof-of-Stake (PoS) consensus: This mechanism allows for fast transaction processing and participation in governance through staking.
• Total and circulating supply: The total supply of Toncoin is approximately 5.1 billion TON, with a circulating supply of around 2.5 billion TON, which is about 49% of the total supply.
• Market capitalization: As of September 14, 2024, Toncoin’s market capitalization stands at approximately $14 billion, which makes it one of the top 10 cryptocurrencies by market cap (number 9 at the time of writing).
• Trading perks and zero transfer fees: Toncoin offers users trading perks and zero transfer fees within the Telegram ecosystem.

Future price predictions

Despite Toncoin’s recent volatility and challenges, price predictions for 2024 and 2025 offer a (cautiously) promising outlook. For 2024, forecasts anticipate a minimum of $5.10, an average of $6.30, and a maximum of $7.50.

Toncoin price predictions table:

Year	Minimum Price
2024	$5.10
2025	$4.30
2030	$22
2024 average	$6.30
2024 maximum	$7.50

These projections highlight a cautious outlook for 2025 amid market volatility, but suggest significant growth if market conditions stabilize by 2030. The current price trend shows Toncoin facing resistance at $6.70, with a critical need to break through this level for a potential upward movement. 

Historical price analysis indicates November as typically the best month for purchasing Toncoin. It may be a good strategic timing for investors aiming for future gains. Price predictions for Toncoin are consequently mixed but promising long-term.

Of course, as with almost any predictions in the crypto market, Toncoin’s price is still significantly tied to Bitcoin and the overall market sentiment. So, Toncoin’s price action doesn’t depend only on Toncoin.

Recovery and viability analysis

In the aftermath of the 20% crash in Toncoin’s price, the cryptocurrency’s recovery and long-term viability are now under intense scrutiny.

Key considerations for Toncoin’s recovery:

• Market perception. The future recovery of Toncoin depends on market perception and the resolution of legal issues surrounding Telegram and its leadership.
• TON foundation’s development efforts. Ongoing development efforts by the TON Foundation are critical in stabilizing Toncoin and restoring investor confidence.
• Price forecasts. Market predictions suggest a potential rebound, with forecasts for 2024 estimating prices to range between $5.10 and $7.50. 
• Broader market sentiment. While TON has their hands full right now, Toncoin is still part of the crypto market. As such, it’s subject to the overall crypto market sentiment.

Toncoin’s price performance will be heavily influenced by regulatory outcomes and the ability of the TON Foundation to maintain investor confidence.

The media attention and scrutiny following the arrest of Pavel Durov are huge factors. Toncoin’s future is heavily tied to how this story unfolds and, ultimately, ends.

The bottom line

You’ve just explored the Toncoin price crash that was triggered by the arrest of Telegram CEO Pavel Durov in France. The incident broke key support levels and heightened regulatory concerns. This led to a significant 20% drop in value. 

Despite a temporary price indexing glitch, the primary cause of the crash was the arrest’s negative impact on investor sentiment. The Toncoin project now faces scrutiny and uncertainty, which may affect its recovery and viability in the volatile cryptocurrency market.

FAQs

What is Toncoin?

Toncoin is the cryptocurrency of The Open Network (TON), designed for high-speed transactions and scalability. It enables staking and governance participation on the platform.

How much is 1 Toncoin?

As of September 2024, Toncoin’s price fluctuated between $5.10 and $5.60, depending on market conditions.

How to buy Toncoin? Where to buy Toncoin?

You can purchase Toncoin on major cryptocurrency exchanges like Binance, KuCoin, or Bybit. Look for “TON” in the trading pairs section.

How to mine Toncoin?

Toncoin cannot be mined traditionally, as it operates on a Proof-of-Stake (PoS) consensus mechanism. You can earn rewards by staking your coins instead.

How to get free Toncoin?

Some platforms offer promotional campaigns or airdrops that allow users to get free Toncoin. Additionally, staking and participating in governance may also provide rewards.

How to earn Toncoin?

You can earn Toncoin mainly through staking on the TON blockchain. Also, some platforms may offer Toncoin as part of promotional events, airdrops, or by participating in community activities like development bounties or contests.