Pavel Durov Arrest What Will Happen to TON

The detention of Telegram CEO Pavel Durov in France marks the first instance of such a high-profile arrest of a messenger or social network executive for alleged "failure to properly control their platform."

An investigation is currently ongoing, and the implications of this precedent could be significant for the entire industry. The situation will be closely monitored, as it may impact the regulation and governance of digital platforms in the future.

Following Durov's arrest on August 24, the price of Toncoin dropped by more than 20%, but then partially recovered. As of August 30, TON is trading at $5.6 with a market capitalization of $14 billion.

How TON Holders Reacted to Pavel Durov's Arrest

In the initial hours following the news of this event, the market reacted with a significant drop in the token's value. Given that Pavel Durov plays a key role in the management and strategic development of TON, the freezing of his assets could lead to a temporary weakening of the project's market position. Retail investors were the main contributors to this reaction, as they began to sell off their assets en masse, fearing further price declines and uncertainty surrounding the project's future.

The sell-off among retail investors led to a sharp increase in the supply of tokens on the market, which further exacerbated the decline in their value. While major holders are taking a wait-and-see approach for now, many smaller investors chose to lock in their losses to minimize potential risks.

1. One of the most notable actions was taken by the founder of DWF, who purchased TON tokens worth approximately $500,000 on the open market. He stated his intention to hold these assets on-chain until Pavel Durov is released.

2. Zhu Su, the founder of 3AC: Another major player, the founder of Three Arrows Capital (3AC), Zhu Su, publicly announced the acquisition of TON tokens at a price of $5.8 per unit.

3. Memeland treasury funds were used to purchase TON worth $1 million. Memeland representatives also expressed their support, stating that they plan to hold these assets until Durov is released.

But what about market makers and funds?

One of the major liquidity providers for $TON took decisive action by withdrawing all the liquidity provided for the $TON token. Within 4 hours, this participant also sold 356,545 $TON tokens worth $1.98 million at an average price of $5.57 per unit. Address - link

Market maker Wintermute, one of the leading players in the cryptocurrency market, also actively participated in trading TON tokens. Despite the market volatility, Wintermute continued to fulfill its liquidity provision functions, actively trading TON and helping maintain liquidity across various platforms.

Wallet Wintermute - Link

In light of this, we also have something to share. We are pleased to announce that support for the TON blockchain will soon be available on our Arbitragescanner service! Currently, we are the first in the market to have launched a node, and we are already indexing it. During the process, we also encountered some disruptions in the blockchain's operation.

The current situation has had a particularly severe impact on the operations of TON blockchain validators. Validators play a key role in maintaining the security, consensus, and continuous operation of the network. They process transactions, add new blocks to the chain, and ensure the system's decentralization. In the case of TON, it was revealed that a significant portion of the validators are concentrated in France, where the investigation against Pavel Durov began.

Moreover, the concentration of validators in a single region makes the network more vulnerable to potential attacks and interventions. In the case of France, considering that it is a European country with strong regulatory pressure, concerns were related to possible government interference in the operation of the TON blockchain, which could negatively impact its security and decentralization.

These concerns were not unfounded: shortly after the news of the Telegram founder's detention emerged, the TON network experienced a series of disruptions that led to the failure of around 200 validators.

What’s Next for TON?

Pavel Durov plays a key role in the TON ecosystem, being virtually the only public figure associated with Telegram. For many investors, the success and future of the project are directly tied to his activities. In the short term, Durov's arrest certainly puts pressure on the token's price and may create negative sentiment among market participants. However, the cryptocurrency community has faced similar challenges before.

The story of Binance serves as an example: despite the prosecution of its founder, Changpeng Zhao (CZ), both Binance and BNB Chain continue to develop confidently. It is highly likely that TON will also navigate through the current difficulties and may even emerge stronger.

Nevertheless, the market is often driven by emotions rather than rational analysis. In practice, most investors tend to make buy or sell decisions under the influence of emotional factors, which explains the sharp reaction to Durov's detention and the subsequent market fluctuations. Also, check out our latest article on market manipulation in crypto and how to profit from it - Link