Toncoin crashes by double digits as Telegram CEO Pavel Durov has been arrested

• The price of toncoin dropped by double digits as Telegram CEO Pavel Durov was arrested in France.
• French authorities accuse Telegram of facilitating crimes such as terrorism, narcotics trafficking and fraud, among others.
• On-chain shows that the core balance of the TON exchange is showing a positive peak, suggesting selling pressure from investors.

Toncoin (TON) fell 14% in two days, hitting a low of $5.23 on Sunday. Since Monday, it has been trading at around $5.73. This bearish sentiment was initiated by the arrest of Telegram CEO Pavel Durov by Fench authorities on Saturday.

Pavel Durov arrested in France

Telegram founder and CEO Pavel Durov has been arrested in France and placed in custody by agents of France’s National Anti-Fraud Office, according to a report on Saturday by reputable French news site TF1.

Durov was detained by the National Anti-Fraud Office (ONAF). French authorities accuse Telegram of facilitating crimes such as terrorism, narcotics trafficking and fraud, among others.

A source familiar with the investigation further told the French news outlet:

“On his platform, he has allowed countless misdemeanors and crimes to be committed that he does nothing to moderate or cooperate with.”

Due to this arrest, bearish sentiment around Toncoin includes uncertainty about the leadership and direction of the project after Durov’s arrest. Durov’s pivotal role in its development and association with Telegram, an integral platform of the Toncoin ecosystem, potential regulatory implications for Telegram and its associated projects, and a general loss of confidence among investors also contributed to bearish sentiment. The arrest sparked fears that it could hinder the growth and adoption of Toncoin, leading to increased selling pressure.

The currency fell 14% in two days, hitting a low of $5.23 on Sunday. Since Monday, it has been trading at around $5.73.

Toncoin Daily Chart

Following Pavel Durov’s arrest, Tesla CEO Elon Musk posted the hashtag #FreePavel on his social media platform X. #FreePavel and #FreeDurov emerged as supporters protested Durov’s arrest and called for his release .

Santiment Exchange Flow Balance for TON shows the net movement of tokens in and out of exchange wallets. A positive value indicates more Toncoin in than out, suggesting selling pressure from investors. Conversely, a negative value indicates more Toncoins have left the exchange than entered, indicating less selling pressure from investors.

In the case of Toncoin, the Exchange Flow balance increased from -111,280 to 251,220 from Friday to Sunday. This positive growth indicates increased selling pressure from investors.

During this event, the supply of TON on exchanges increased by 8%. This is a downward trend as investors send their TON tokens from their wallets to exchanges, increasing selling pressure and driving the Toncoin price down.

TON exchange flow balance and exchange supply chart