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Toncoin, a digital token linked to the messaging app Telegram, experienced a significant drop in market value after the app’s co-founder, Pavel Durov, was reportedly detained at a Paris airport. The token, part of The Open Network (TON) blockchain, saw its value plunge by over 20%, wiping out around $2.7 billion from its market capitalization.
Durov’s detention has raised concerns about the future of Toncoin, which had been gaining traction due to its association with Telegram’s massive user base of 900 million people. The token’s price recovered slightly but remained down by 16%, trading at $5.58 as of Monday afternoon in London.
The TON blockchain, although technically separate from Telegram, has benefited from its close ties to the messaging platform, fueling speculation that Telegram could evolve into a “super-app” similar to WeChat in China. However, the recent developments have cast doubt on this potential.
Richard Galvin, co-founder of hedge fund DACM, which invested in TON tokens earlier this year, noted that it’s still unclear how Durov’s detention will affect Telegram in the long run. He emphasized that anything undermining Telegram’s position would likely have a negative impact on Toncoin as well.
Telegram issued a statement asserting its compliance with European laws and stated that Durov has “nothing to hide.” The company continues to monitor the situation closely as the market reacts to this unfolding drama.