Toncoin drops 18%, Notcoin drops after arrest of Telegram CEO Pavel Durov

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The price of Toncoin (TON) fell as much as 18% to below $5.53 on Sunday following the news that Telegram co-founder and CEO Pavel Durov was arrested at Le Bourget airport in France, according to CoinGecko data. The value of Notcoin (NOT) also crashed by 21% as concerns about Durov’s legal issues grew.

On August 24, Durov was detained by French police at Bourget airport after arriving on his private jet from Azerbaijan, the BBC reported. His arrest was executed on the basis of a warrant issued by OFIM in France, which deals with the prevention of violence against minors.

The enforcement action is part of a police investigation into Telegram’s alleged lack of moderation, which allegedly allowed criminal activity to proliferate on the platform.

French officials say insufficient oversight by Telegram has allowed illicit activity, raising concerns about the platform’s role in facilitating such behavior, especially given its massive user base of nearly a billion people.

After the news broke, the value of Toncoin suffered a steep decline. TON’s market capitalization declined, falling from $17.1 billion to around $14 billion in a few hours, CoinGecko data shows.

Toncoin is a crypto asset closely related to messaging app Telegram and it founder Pavel Durov. TON is the native open network currency that was originally developed by Telegram but later released independently. TON integrates with Telegram, allowing users to use Toncoin for payments, storing value, and accessing decentralized applications from within the Telegram app.

Like Toncoin, Notcoin is also linked to Telegram. Notcoin is a crypto-based idle game that has skyrocketed in popularity on Telegram this year, amassing over 35 million users in just five months.

The simplicity and accessibility of the game made it a gateway for many Telegram users crypto, allowing them to earn tokens NOT simply by touching their screens.

Notcoin price dropped after Durov’s arrest. NOT is currently trading at around $0.009, down 20% in the last 24 hours while TON is trading at around $5.6. Toncoin’s value is about 31% away from its all-time high of $8.2 set in mid-June.

The broader crypto market remains relatively stable, showing a slight 1.1% increase one day. It existed little change in the price of Bitcoin in the past 24 hours, trading at nearly $64,000 at press time.

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