Telegram-linked TON cryptocurrency drops 20.5% after app founder’s arrest

Toncoin, the cryptocurrency linked to messaging app Telegram, fell more than 20% during trading on Sunday, after French authorities announced the arrest of the app’s founder, Pavel Durov, amid uncertainty over the fate of the cryptocurrency.

According to CNN, the cryptocurrency’s value fell from $6.80 to around $5.35, according to CoinMarketCap data, representing a decline of around 20.49% in the last 24 hours, indicating the continued close relationship between the cryptocurrency and the Telegram app.

Toncoin is a blockchain platform that was initially developed by the Telegram app in 2018; Aiming to provide fast transactions, scalability, and ease of use for decentralized applications, the project faced regulatory hurdles that led to the app officially stepping away from cryptocurrency development in 2020.

However, the volatility of TONCOIN’s price in response to Telegram founder Durov’s troubles confirms that investors still see the app’s future and its founder’s involvement in the market as a crucial factor in the fate of the cryptocurrency.

This comes after French authorities arrested Durov (39 years old) on Saturday evening at Paris-Le Bourget Airport as he was getting off a private jet, and authorities have not yet revealed the charges against the billionaire.

The decision to arrest Pavel Durov has been met with increasing criticism from cryptocurrency market participants, who see the move as a nail in the coffin of decentralization, which is the main reason cryptocurrency projects rely on.

The lack of information surrounding Durov’s arrest is also fueling speculation about potential regulatory challenges facing Telegram and its crypto endeavors, and heightening concerns about freedom of expression on social media platforms.