Toncoin, a digital asset tied to The Open Network (TON) blockchain project, suffered a market value loss of approximately $2.7 billion following the arrest of Telegram co-founder Pavel Durov. Durov was detained at a Paris airport on Saturday over allegations of criminal use of his messaging platform, leading to Toncoin’s value plummeting by over 20%.
Toncoin, initially known as Gram, is the native cryptocurrency of the TON network. As of August 26, 2024, Toncoin’s market cap stands at $14.39 billion, according to Coinbase. Despite claims that Toncoin is separate from Telegram, the close association has made Telegram one of the most-hyped crypto projects.
In May 2024, Pantera Capital, an American investment firm, described its purchase of Toncoin as its largest-ever investment. Telegram responded to Durov’s arrest on X, stating that he has “nothing to hide” and that the platform follows EU laws, adding that it is “absurd” to hold a platform accountable for user abuses.
Richard Galvin, co-founder of hedge fund DACM, told Bloomberg that it is “too early to tell” what long-term impact Durov’s detention will have on Telegram. DACM had purchased TON tokens in a private round in early 2023.
