Durov Arrested, Shockwaves Sent Through The TON Ecosystem

Toncoin (TON), the native cryptocurrency for the Telegram Open Network is yet to fully recover from its decline following the arrest of Telegram CEO

Telegram CEO Pavel Durov was arrested on Saturday at an airport near Paris, France, as part of a judicial investigation for alleged criminal activity through the messaging application and non-cooperation with law enforcement, according to the Paris Public Prosecutor's Office.

The investigation by French authorities could potentially implicate Durov in cases of complicity in money laundering, distribution of child pornography, sales of narcotics, organized fraud, provision of unauthorized cryptology services, and criminal association.

Following the news, Toncoin (TON), the native cryptocurrency for the Telegram Open Network (TON), experienced a significant decline, losing almost 20% of its value within several hours.

While memecoins are typically known to be more susceptible to drastic price fluctuations based on news and hype, it's important to note that any unfavorable news or event can negatively impact the fundamental analysis of any cryptocurrency project, including established ones like Bitcoin and Ethereum.

Such news can further dissuade investment in the project and could cause whales and retail investors to pull out funds pending a reversal of the situation.

At the time of writing, TON tested the $5.14 mark, leaving it at risk of touching its 3-month low of $5.01 with little signs of recovery.

Latest News on Pavel Durov's Arrest and TON Price Movement

The latest news confirmed by Watcher Guru reveals that Durov has been released from police custody and sent to court for a potential indictment, according to the прокуратура Парижа.

The Russian citizen's arrest was met with controversy and largely viewed as an attack on free speech, which his platform Telegram has upheld for many years.

In reaction to the news of Durov's release, TON surged over 13%, returning positive sentiments to the native currency and the ecosystem at large.

Throughout the 39 year-old entrepreneur's brief arrest, the TON ecosystem managed to distribute one of the largest airdrops in history against all odds.

On Monday, a Telegram-backed memecoin called DOGS was distributed to about 42 million eligible players who engaged with the airdrop via its Telegram mini-app.

Like NotCoin, a similar project before it, DOGS also featured on the Binance launchpad with billions of dollars worth of BNB and FDUSD stablecoin staked to farm it.

The Telegram Open Network has hosted two of the biggest airdrops this year and will be hosting more in the coming months, including Hamster Kombat, one of the most popular play-to-earn airdrops on earth, having reached over 250 billion people globally and planning to list in September.

TON quickly rode swiftly from 5.33 to 5.84 within just 20 minutes after the news of Durov's release was announced. As of this writing, it trades at $5.60, per CoinMarketCap and could appreciate from here, depending on subsequent news from the Telegram founder's case.