Most TON Holders In the Red as Price Keeps Falling After Telegram CEO Arrest
The post Most TON Holders In the Red as Price Keeps Falling After Telegram CEO Arrest appeared on BitcoinEthereumNews.com.
Toncoin’s price slipped below $5 on Tuesday, hitting a four-month low following the arrest of Telegram founder and CEO Paul Durov in France late last month. The Telegram-linked cryptocurrency, which powers The Open Network (TON), is officially separate from the messaging app. Still, TON has roots with Telegram’s CEO, and it serves as the backbone for Telegram’s crypto features, such as in-app, digital wallets. Over the past day, Toncoin’s price had fallen 4.1% to $4.95, showing a 26% loss over the past two weeks. With the asset market cap at $12.4 billion, Tuesday’s dip was enough to push Toncoin out of the top ten cryptocurrencies ranked by market capitalization, according to CoinGecko. While Toncoin’s integration with Telegram yielded an initial burst of users, Durov’s arrest and a recent network outage have compounded price declines, as TON shows signs of struggling to grow beyond Telegram use-cases, said David Kinitsky, the COO of Dominant Strategies, a blockchain development firm. “You could not ask for two worse events to come back-to-back,” Kinitsky told Decrypt in an interview, adding the events amplified questions about TON’s resilience and growth. Durov was arrested on charges related to Telegram’s lack of moderation. French authorities said he refused efforts to stop the spread of illegal activity on the platform, such as drugs and money laundering. Following his indictment on six charges, Durov was released on bail last week. While Toncoin’s price is up 166% over the past year, a majority of holders are in the red, according to IntoTheBlock data. Around 70% of addresses holding TON bought the cryptocurrency above its current price, while 10% have profits on paper. Telegram began rolling out TON-based wallets to users last September. And nearly a year later, tap-to-earn games are driving a speculative wave of engagement. It all started with Notcoin,…
Filed under: News - @ September 3, 2024 11:26 pm