It was the 10th largest crypto asset... It lost nearly 3 billion dollars in value within days

Toncoin, a cryptocurrency derived from a blockchain project linked to the Telegram messaging app, has lost 2.7 billion dollars in value, signaling uncertainty following the arrest of CEO Pavel Durov. Toncoin, the token of The Open Network, lost more than 20% of its value immediately after Pavel Durov was detained at a Paris airport on suspicion of failing to take necessary steps to prevent the criminal use of Telegram.

According to data compiled by Bloomberg, Toncoin, the 10th largest crypto asset, recovered some of its losses to trade at 5.69 dollars as of 10:36 AM in Singapore at the start of the week, but remained down 16% as a result of the drama surrounding the 39-year-old Durov.

'ONE OF CRYPTO'S MOST TALKED-ABOUT VENTURES'

The Open Network (or TON) blockchain has access to Telegram's 900 million monthly users through a partnership and aims to enable services such as in-app payments and games. The rise of TON has fueled speculation that Telegram has a chance to become a “super app” in the style of Chinese giants like WeChat.

The foundation behind the project, which is three years old, says it is separate from Telegram. However, the ties between Telegram and TON have made the latter one of the most talked-about ventures in crypto. Pantera Capital Management LP described its purchase of Toncoin in May as the firm's largest investment to date.

'FROM 1.1 BILLION DOLLARS TO 661 MILLION DOLLARS'

Richard Galvin, co-founder of hedge fund DACM, which bought TON tokens in a private round in early 2023, said it was “too early to tell” what the long-term impact of Durov's detention would be on Telegram. Galvin stated that the main appeal of the TON-Telegram relationship was “the ability to introduce Telegram's vast user base to crypto functionality” and that “anything that weakens Telegram's competitive position is negative for TON.”

According to data from DefiLlama, the value of assets locked on the TON blockchain rose to as high as 1.1 billion dollars last month this year, but the figure has now fallen to 661 million dollars. According to CoinGecko, the price of Toncoin has more than tripled over the past year, and the token's current market capitalization is approximately 14.4 billion dollars.

News Source: 12punto