Toncoin (TON) Price Plunged by 20% After Telegram Founder Pavel Durov's Arrest

Toncoin, a cryptocurrency linked to the Telegram messaging app, has recently seen a sharp decline in its value. The drop of nearly 20% came after news broke of the arrest of Telegram's billionaire founder, Pavel Durov, in France.

Toncoin, a cryptocurrency linked to the popular Telegram messaging app, has experienced a sharp decline in its value following the arrest of Telegram's billionaire founder, Pavel Durov. The drop of nearly 20% in Toncoin's market value has raised concerns about the future of the cryptocurrency.

Durov was arrested by French police on August 24 at Bourget Airport after arriving on his private jet from Azerbaijan. The arrest was made by France's OFIM, an organization dedicated to preventing violence against minors, as part of a broader investigation into Telegram's alleged failure to moderate content on its platform, which authorities claim has enabled criminal activities.

According to French media reports, Durov could face serious charges, including terrorism, drug trafficking, fraud, money laundering, and sharing child abuse content. If found guilty of breaking the country's content moderation laws, Durov could face up to 20 years in prison.

The news of Durov's arrest had an immediate impact on Toncoin's market value. Within hours, the Toncoin price fell by nearly 20%, dropping from $7.1 to $5.6, resulting in a significant loss in market capitalization, which decreased from $17.1 billion to around $14 billion.

Following the arrest, investors rushed to sell their Toncoin holdings, likely fearing further price drops. This sharp drop in Toncoin's market value showcases how the market is responding to the legal issues that Durov and Telegram are facing.

Technical Analysis of Toncoin (TON)

Toncoin (TON) is currently trading around $5.81, indicating a substantial recovery from its recent drop. However, technical indicators suggest that Toncoin remains in a vulnerable position, having dropped below key support levels, including the 200-day and 50-day moving averages.

This technical analysis indicates that Toncoin may experience further downward pressure before finding stability.

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