Toncoin price crashes double-digits as Telegram CEO Pavel Durov Arrested
- Toncoin price crashed by double-digit as Pavel Durov, Telegram CEO, was arrested in France.
- French authorities accuse Telegram of facilitating crimes such as terrorism, narcotics trafficking, and fraud, among others.
- On-chain shows TON's Exchange floor balance shows a positive spike, suggesting selling pressure from investors.
Toncoin (TON) plunged 14% in two days, reaching a low of $5.23 on Sunday. As of Monday, it trades at around $5.73. This bearish sentiment was initiated by the arrest of Pavel Durov, CEO of Telegram, by the Fench authorities on Saturday.
Pavel Durov arrested in France
Telegram founder and CEO Pavel Durov has been arrested in France and placed in custody by agents of France's National Anti-Fraud Office, according to a report from reputable French news site TF1 on Saturday.
Durov has been detained by the National Anti-Fraud Office (ONAF). French authorities accuse Telegram of facilitating crimes such as terrorism, narcotics trafficking, and fraud, among others.
A source familiar with the investigation further told the French news outlet:
"On his platform, he allowed countless misdemeanors and crimes to be committed for which he does nothing to moderate or cooperate."
Due to this arrest, the bearish sentiment surrounding Toncoin includes uncertainty about the project's leadership and direction following Durov's arrest. Durov's pivotal role in its development and association with Telegram, a platform integral to Toncoin's ecosystem, potential regulatory implications for Telegram and its associated projects, and a general loss of confidence among investors have also contributed to the bearish sentiment. The arrest has sparked fears that it could hinder the growth and adoption of Toncoin, leading to increased selling pressure.
The coin plunged 14% in two days, making a low of $5.23 on Sunday. As of Monday, it trades at around $5.73.
Toncoin daily chart
Following Pavel Durov's arrest, Tesla CEO Elon Musk posted the hashtag #FreePavel on his social media platform X. #FreePavel and #FreeDurov emerged as supporters protested Durov's arrest and called for his release.
#FreePavel
— Elon Musk (@elonmusk) August 25, 2024
pic.twitter.com/B7AcJWswMs
Santiment's Exchange Flow balance for TON shows the net movement of tokens into and out of exchange wallets. A positive value indicates more Toncoin entered than exited, suggesting selling pressure from investors. Conversely, a negative value indicates more Toncoin left the exchange than entered, indicating less selling pressure from investors.
In Toncoin's case, the Exchange Flow balance has spiked from -111,280 to 251,220 from Friday to Sunday. This positive uptick indicates increasing selling pressure from investors.
During this event, the TON Supply on Exchanges rose by 8%. This is a bearish development, as investors send their TON tokens from their wallets to exchanges, increasing selling pressure and declining the Toncoin price.
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TON Exchange Flow balance and Supply on Exchanges chart
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
