Pavel Durov’s Arrest. Will TON Recover After a 22% Drop and Rising Market Volatility?

• TON’s price dropped by over 22%, from $6.8 to $5.2, after Pavel Durov’s arrest, raising concerns about the platform’s future.
• Despite the price drop, TON’s open interest surged by 80%, showing increased market engagement amid legal scrutiny.
• TON’s 7.36% daily decline reflects market uncertainty, with a 32.92% drop in trading volume and steady block production.

Pavel Durov, CEO of Telegram, was recently arrested following criminal allegations from French authorities. The charges include serious accusations such as fraud, involvement with underage pornography, narcotics, money laundering, and refusal to assist in government investigations. 

Telegram has responded by asserting that its moderation policies adhere to EU regulations, specifically the Digital Services Act (DSA). Despite these claims, Durov’s arrest has sparked concerns regarding the platform’s management and moderation practices. As these legal proceedings unfold, the cryptocurrency TON, linked to Telegram, has witnessed significant market fluctuations.

TON’s Price Drops Over 22%

TON saw a sharp decline of over 22%, with its price dropping from $6.8 to $5.2 in recent days. This price movement coincided with the arrest of Pavel Durov, fueling market uncertainty. 

From July 20 to August 25, TON experienced a noticeable decline, with steep price movements notably around August 25, when a drastic 20% drop was recorded. The volatility was marked by multiple price swings, stabilizing periods, and intermittent rebounds.

Notably, the percentage changes reflect the market’s unpredictability. Daily price shifts, both negative and positive, occurred throughout the period, with the end of August seeing the most dramatic decline. This downward trend coincided with legal issues surrounding Telegram’s CEO, amplifying concerns among investors.

Increased Open Interest Signals Market Activity

Despite the price drop, TON’s open interest rose significantly. Open interest jumped from approximately $200 million to $360 million, an 80% increase. This surge in open interest suggests increased market engagement, even as TON’s value decreased. Investors may be looking to capitalize on the price movements, anticipating further volatility in the cryptocurrency.

Additionally, the network’s block production has remained steady, with both master and workchains functioning normally. However, the growing legal scrutiny around Telegram and its leadership continues to cast uncertainty over TON’s market performance.

TON’s Current Market Status

At press time, TON was trading at $5.38, a 7.36% decrease over the past 24 hours. Its market cap has dropped 7.37%, currently valued at $13.6 billion. The 24-hour trading volume has also declined, down 32.92% to $990 million. Notably, TON’s volume-to-market cap ratio is now at 7.25%, indicating strong trading activity relative to its market cap.

With a circulating supply of 2.53 billion TON and a total supply of 5.11 billion, the cryptocurrency’s market remains active. However, the market faces challenges ahead, notably the ongoing legal issues surrounding Pavel Durov and their potential impact on TON’s future.