The arrest of the co-founder and CEO of the Telegram social media platform, Pavel Durov, sent shockwaves through the crypto market with top figures commenting and lending their voices to his release. The ripple effect of the arrest was felt by the linked cryptocurrencies Toncoin (TON), and Notcoin (NOT). Since the update, the two aforementioned coins have slipped more than 20% raising concerns about the future trajectory of the projects.
TON and NOT Losses Over 20% in One Week
According to our previous report, Durov was arrested late Saturday on different claims that Telegram had failed to prevent unlawful conduct by its members. Toncoin’s (TON) price has dropped by 21%, as has the network’s largest token, Notcoin (NOT) has fallen by 20%.
Telegram first proposed the Open Network, which uses Toncoin (TON) as its native currency, in 2018 when it released its whitepaper for the “Telegram Open Network.” However, the mobile app company abandoned the initiative as the SEC stated it would have been classified as an unregistered security. This is when the community stepped in, using TON’s code available on GitHub, to complete the project and rename it The Open Network.
The tap-to-earn game Notcoin has been the leader of the cryptocurrency mobile gaming frenzy, which started on Telegram. To earn in-game points, players are urged to repeatedly click on gold coins. This finally led to the biggest cryptocurrency gaming airdrop of 2024, reaching a $2.97 billion market cap.
Numerous more projects have followed suit, developing games based on Telegram and offering airdrops in the future, thanks to the project’s success and significant updates from Telegram. Some Telegram games, like Notcoin and Hamster Kombat, have shown support for the founder after Durov’s recent arrest through in-game features, stickers, and social media posts.
The network’s Resistance Dog, a token that stands for “digital resistance,” has been used to replace the original Toncoin logo. The Resistance Dog became the official Twitter avatar of the TON Society, encouraging other projects and community members to follow suit. The group posted a picture of themselves with the free emoji and the phrase #FreeDurov, alluding to the arrested Telegram CEO. More than 210,000 people have retweeted this message thus far.
Consequently, the Resistance Dog token (REDO) has surged by over 90% over the last week, reaching a market valuation of $67 million making it the fifth-largest cryptocurrency on the TON network aside from stablecoins.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.