On August 26, Telegram CEO Pavel Durov was arrested at an airport in France and later produced in a local court on criminal charges. The arrest caused significant fluctuations in the cryptocurrency market, particularly affecting the TON network tokens.
Market Impact
Following the arrest of Pavel Durov, Toncoin lost $2.7 billion in market value, a 20% drop within 24 hours of the news. Traders bet almost $70 million, causing TONNE’s open interest in future markets to jump 32%. Telegram’s tight historical ties to the Toncoin blockchain network rendered Durov’s arrest detrimental to the token's price. The current Toncoin price stands at $5.59.
Token Stabilization
Inspite of Durov’s news, the DOGS token is experiencing an uptrend, having soared 23% and reaching a market cap of $789M. Over the last 24 hours, 8.2 million positions were liquidated, with $3.82 million coming from long positions and $4.20 million from short positions. The PAAL AI token also showed an uptrend of 13.1%, reaching a price of $0.1963.
Conclusion
While the arrest of Telegram co-founder Pavel Durov impacted crypto tokens, such tokens as $DOGS and PAAL AI displayed resilience and growth. This incident highlights the volatility of the crypto market and its sensitivity to external influences.
The arrest of Telegram co-founder Pavel Durov significantly affected the cryptocurrency market, but tokens like $DOGS and PAAL AI show signs of recovery and growth despite negative news.
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