Toncoin (TON), the cryptocurrency linked to Telegram, saw its price dip below $5 on Tuesday, marking a four-month low.
Toncoin (TON), the cryptocurrency linked to Telegram, saw its price dip below $5 on Tuesday, marking a four-month low in the wake of Telegram co-founder and CEO Pavel Durov’s recent arrest in France. TON has declined a staggering 8.5% of its value over the past 24 hours, bringing its price down to $4.79. It has lost 20% over the past month, dropping to tenth in market cap ranking, according to CoinMarketCap.
Although TON is officially independent of Telegram, it powers various crypto features within the messaging app, such as digital wallets. The recent price decline reflects growing concerns about the cryptocurrency’s ability to sustain growth beyond its Telegram integration, especially after a series of setbacks that have rattled investor confidence.
Durov was detained on charges related to Telegram’s alleged failure to moderate illegal activities on its platform, including drug trafficking and money laundering. French authorities arrested Durov late last month, accusing him of defying efforts to curtail these activities. Although Durov has since been released on bail, the charges and his ongoing legal battles cast a shadow over Toncoin’s future.
Despite Toncoin’s price being up 166% over the past year, a significant portion of holders are currently in the red. According to data from IntoTheBlock, around 70% of addresses holding TON acquired the cryptocurrency at prices higher than its current value, while only 10% of holders are seeing paper profits.
The situation has been further complicated by a series of network disruptions. Last week, a dog-themed meme coin launch caused the TON network to halt for over three hours, a disruption reminiscent of the outages that plagued Solana and negatively affected its market performance. These technical issues have raised concerns about TON's infrastructure, with critics questioning whether the network can adequately support its growing user base.
While Telegram’s integration of TON-based wallets and the rise of crypto-centric games on the platform have driven user engagement, these developments have not been enough to sustain Toncoin’s upward momentum. Since July, the total value locked (TVL) in TON has plummeted from $776 million to $333 million, highlighting the network’s struggle to expand beyond its initial user base.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
