Telegram-Linked Cryptocurrencies Plummet Following CEO’s Arrest 📉
If you’ve been keeping an eye on the crypto market this year, you may have noticed that Telegram-linked cryptocurrencies Toncoin (TON) and Notcoin (NOT) have experienced a significant drop in value over the past week. This downward trend coincides with the arrest and subsequent charges against Telegram CEO Pavel Durov in France. As a result of these developments, both tokens have seen a decline of more than 23% in their prices, signaling a challenging period for investors and traders.
A Brief History of the Open Network and Toncoin 📚
The Open Network, originally created by the Durov brothers, Pavel and Nikolai, faced regulatory scrutiny from the SEC for allegedly operating an unregistered security. Following these warnings, the project was abandoned by the founders and later taken over by community members who introduced Toncoin as the native currency of the network. Additionally, Notcoin emerged as the network’s flagship application, offering users a Telegram-based tap-to-earn gaming experience.
CEO’s Arrest Sparks Token Sell-Off 🚨
Over the weekend, reports surfaced that Pavel Durov, the CEO of Telegram, had been arrested in Paris, France, on various charges related to illegal activities conducted through the messaging platform. This news sent shockwaves through the crypto community, leading to a sharp decline in the prices of both TON and NOT tokens. The aftermath of Durov’s arrest has had a direct impact on the market sentiment surrounding these cryptocurrencies, prompting many investors to rethink their positions.
Market Reaction and Token Performance 📉
Since the news of Durov’s arrest broke, CoinGecko data indicates that both TON and NOT tokens have experienced a notable decrease in value, with TON dropping by 23.3% and NOT by 18.1% over the past seven days. The negative sentiment surrounding the Telegram-linked cryptocurrencies has also spilled over to other tokens on the network, such as:
– GAMEE (GMEE) down 31.5%
– PunkCity (PUNK) down 21.1%
– Povel Durev (DUREV) down 8.4%
Network Disruption and Technical Issues ⚠️
One of the contributing factors to the decline in token prices is the temporary halt in operations of The Open Network. A recent incident involving an “abnormal load” on the network resulted in the suspension of block production, causing disruptions to the network’s functionality. This unforeseen technical issue has impacted the network’s ability to maintain consensus among validators and process transactions efficiently, further adding to the challenges faced by investors.
Surge in Network Activity and Market Cap 💰
Recent reports from Notscan have highlighted a surge in network activity, particularly surrounding the launch of the Dogs (DOGS) meme coin. This new token has garnered significant attention, leading to increased network traffic and a temporary slowdown in centralized services. Despite these challenges, the DOGS token managed to achieve a market cap of $673 million within its first week—a testament to the community’s support for Durov and the network.
Hot Take: Navigating the Uncertain Waters of Telegram-Linked Cryptocurrencies 🌊
As an investor in the crypto market, it’s essential to stay informed about the latest developments and news surrounding cryptocurrencies like TON and NOT. The recent events involving the arrest of Telegram CEO Pavel Durov have highlighted the volatility and risks associated with investments in Telegram-linked tokens. By exercising caution and conducting thorough research, you can navigate these uncertain waters and make informed decisions to protect your assets and investments in the crypto space.
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