Toncoin, a cryptocurrency closely associated with Telegram’s 950 million users, has seen a sharp decline following the arrest of Telegram co-founder Pavel Durov. This drop highlights the vulnerabilities in the crypto market that continue to hinder its broader acceptance.
- Toncoin plunged over 20% after Durov’s arrest in France, resulting in a market value loss of approximately $5.9 billion.
- Durov is accused of failing to prevent the spread of illegal content on Telegram, casting a shadow over Toncoin and the TON blockchain.
- Pantera Capital and other major investors like Animoca Brands invested in Toncoin at a discount, but retail investors remain exposed to significant risk.
- The total value locked on TON has fallen from $1 billion in June to $650 million, according to DefiLlama.
The incident raises further questions about the stability of cryptocurrencies and the regulatory pressures they face. With increasing scrutiny of Telegram and associated assets, investors must stay cautious about the future of Toncoin.
