The arrest of Pavel Durov, founder and CEO of Telegram, has increased the selling pressure on Toncoin. Despite this, large whale investors have continued to accumulate the asset. According to data from IntoTheBlock, 92% of the total Toncoin supply is possessed by whales, individuals, or entities that own more than 0.1% of the asset’s total supply of 5.1 billion tokens. The remaining 8% is held by retail investors, who own less than 0.1% of the total supply.
Arrest of Telegram Founder Amplifies Selling Pressure
On August 25, the price of Toncoin fell to a local low of $5.32 and was below $6 per coin. Large holders took the opportunity to accumulate 13.14 million tokens. After Durov’s recent arrest in France, the Toncoin’s value dropped by a whopping 20%, leading to a market capitalization loss of $3.8 billion, which caused it to drop from the eighth to the eleventh position among leading cryptocurrencies.
But as people came out in support of Telegram founder, Toncoin started pulling out of the gutters to a certain extent. At the time of writing, Toncoin moved by 2% in the last 24 hours and is currently priced at $5.62. The market capitalisation of the asset has crossed the $14 billion mark, while daily trading volume in this asset is about $1.2 billion.
Earlier today, Toncoin touched an intraday high of $5.93 but it could not sustain this level because of increased selling pressure. Recent data shows that Toncoin is slightly oversold, and the RSI is at 44. Due to the fear associated with the asset, its volatility is still prone to large fluctuations.
Pavel Durov, the founder of Telegram is facing severe accusations, including money laundering and not cooperating with the law enforcement, and if found guilty can be sentenced to up to 20 years behind bars. In relation to the information about the arrest of Durov at Le Bourget Airport, the price of Toncoin decreased to $5.88, which decreased by 35% compared to its value in June. Rumours suggest that the charges against Durov may involve illegal cryptographic services and unregistered tools related to the TON blockchain platform.
Serious Allegations Against Durov
Durov is accused of wrong doings but there is no concrete evidence against them till-to-date. However, probes continue to roll. Durov could remain in custody until August 28 as new developments continue to unfold. This has raised concerns from various personalities like Elon Musk and Justin Sun where they consider these charges as a violation of the privacy of persons. They say that the charges against Durov are possibly baseless and could set a dangerous precedent for prosecuting other tech entrepreneurs.
Legal Proceedings Create Uncertainty for Toncoin
As the legal battle goes on, the future of Toncoin and the Open Network is at risk as the case unfolds. Telegram is active with 900 million users, and it is integrally connected with the success of the TON. People who support Durov still have hope that the outcome will turn out to be positive despite the fact that the situation may have implications for cryptocurrencies and privacy in general.
At this moment, the entire cryptocurrency community is closely watching how this legal case can affect Toncoin and its position in the digital economy. Now the investors and stakeholders are in suspense as the law-sided approach is working with Durov’s case but the results of which are unpredictable. These developments might have the potential to not only influence the future of Toncoin but also the crypto industry as a whole. For the latest updates on this story and other cryptocurrency market news, keep following DeyThere.
