August 27, 2024
By Anjali Kochhar
With a market valuation of almost $14 billion, Toncoin is a well-known cryptocurrency that rivals Bitcoin and has seen a sharp decline in price of almost 20%. The CEO of Telegram, which is connected to Toncoin, Pavel Durov, was arrested at the same time as the catastrophe. Upon arriving in France via a private plane, Durov was held at Le Bourget Airport. The arrest is a component of an initial police inquiry into Telegram’s purported inability to stop illegal behavior on its network.
Reports indicate that Durov could face indictment as early as Sunday. The investigation is focused on claims that Telegram did not adequately address illicit activities occurring through its messaging service. This development has sent shockwaves through the cryptocurrency market, particularly affecting Toncoin, which has seen significant fluctuations in recent months.
Launched in 2021, Toncoin is an open-source cryptocurrency that operates on The Open Network (TON) blockchain, previously known as the Telegram Open Network. Despite a tumultuous history, including the abandonment of Telegram’s initial cryptocurrency project due to legal challenges from the U.S. Securities and Exchange Commission (SEC), Toncoin has surged in value. The SEC had halted Telegram’s $1.7 billion ICO in 2020, declaring it an unregistered securities sale and mandating the return of funds.
Since then, development of the TON blockchain and Toncoin has been managed by the non-profit TON Foundation. Despite Telegram’s departure from the original TON vision, the cryptocurrency has thrived, buoyed by a booming Bitcoin market and increasing popularity of Telegram-based crypto mini-games utilizing Toncoin.
Durov had previously expressed optimism about the future of blockchain projects following Telegram’s exit from the cryptocurrency space. In a 2021 post, he highlighted his hope that future developers would continue the vision for a mass-market blockchain platform, underscoring Toncoin’s independence from Telegram.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
