Liquidity Crisis Hits TON Following Telegram Founder Arrest

• Pavel Durov’s arrest on serious charges has created uncertainty around The Open Network (TON).
• A liquidity provider sold all TON liquidity, exacerbating the cryptocurrency’s decline.

The recent arrest of Pavel Durov, the founder of Telegram, has had a huge impact on The Open Network (TON) cryptocurrency, resulting in a number of unpleasant incidents.

Toncoin’s (TON) value has dropped sharply after the incident, with a 5.79% drop over the last 24 hours and a shocking 21.59% drop over the last seven days, bringing it down to about $5.39.

This drop has alarmed investors and supporters of the initiative, who are currently watching the cryptocurrency’s quick decline.

Telegram CEO’s Arrest Raises Grave Allegations, Threatening TON’s Future 

Our earlier reports said that Durov was arrested for claimed shortcomings in moderation and cooperation, which has caused conflicting reactions among his followers and the broader IT community.

The gravity of the matter cannot be overstated, as Durov now faces potentially more serious allegations such as terrorism, drug trafficking, fraud, money laundering, and even child abuse. In the worst-case scenario, Durov may face a maximum penalty of 20 years in prison, heightening the uncertainty around TON’s future.

Compounding these concerns, Lookonchain recently revealed that a TON liquidity provider deleted all liquidity and then sold 356,545 TON worth about $1.98 million at $5.57 per TON.

A $TON liquidity provider removed all liquidity of $TON and sold 356,545 $TON($1.98M) at $5.57 in the past 4 hours. #TONCOIN

Address:
0xaba6b18cbcd388745f6b0de936495cb90dbc80d2 pic.twitter.com/rS98WwXYOy

— Lookonchain (@lookonchain) August 26, 2024

This tremendous liquidation has compounded Toncoin’s dismal performance, reducing it to the tenth largest crypto, with selling pressure showing no indications of abating at this time.

On the other hand, before Durov was arrested, CNF reported that Gala had launched Telegram SSO, a feature that facilitates user onboarding across its gaming, music, and cinema platforms. Telegram SSO improves security by giving uniform access to the full Gala ecosystem using a single login.

With games like Treasure Tapper and Music Miner continuing to draw interest from Telegram’s mini-apps users around the world, Gala recognized the necessity of providing a simple and quick way for individuals to join its ecosystem.