Toncoin, the native cryptocurrency of The Open Network (TON) ecosystem, recently achieved a significant milestone, surpassing 1.1 million daily active users (DAUs) and reaching a market capitalization of $13.96 billion. However, this success has been clouded by the arrest of Telegram CEO Pavel Durov, which triggered significant turbulence in the Toncoin market.
Toncoin’s Meteoric Rise
Toncoin’s journey to the top of the TON ecosystem has been impressive, with the token breaking the 1.1 million DAUs mark on May 13, according to data from IntoTheBlock (ITB). By August 26, Toncoin held the highest market capitalization within the TON ecosystem, showcasing its growing influence and adoption.
Impact of Durov’s Arrest
The rise in Toncoin’s market cap came just two days after a major disruption: the arrest of Pavel Durov, the CEO of Telegram, on August 24. Durov was detained upon landing at Le Bourget airport near Paris, a move that sent shockwaves through the crypto community. This arrest led to a sharp 25% drop in Toncoin’s price, plummeting to $5.24 on August 25, as panic spread among investors.
Whale Concentration and Market Volatility
Before Durov’s arrest, ITB data highlighted a significant concentration of Toncoin among large stakeholders, known as “whales.” Specifically, two tokens within the TON ecosystem, Gomining and Ston, had 98% of their supply held by whales. While such backing can indicate strong support for the ecosystem, it also poses risks of market volatility, as these large holders can significantly influence price movements.
Potential for Market Rebound
Despite the initial panic sell-off following Durov’s detention, market analysts suggested that Toncoin could be poised for a rebound. Various technical indicators pointed towards a potential recovery, although the market remained cautious given the ongoing legal uncertainties surrounding Durov.
In the aftermath of Durov’s arrest, French President Emmanuel Macron addressed the situation during a press conference on August 29 while on a diplomatic visit to Serbia. Macron clarified that he had no prior knowledge of Durov’s visit to France and emphasized that the case would be handled by the independent French justice system.
Durov has been charged by French prosecutors and is currently out on a €5 million bail bond. As part of the bail conditions, he must remain in France, check in with law enforcement weekly, and await further legal proceedings.
