$TON Price Plummets After Telegram Founder and CEO Pavel Durov’s Arrest, X Owner Elon Musk Is Outraged

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As a researcher with a keen interest in the dynamic world of cryptocurrencies and blockchain technologies, I find myself both intrigued and concerned by the recent developments surrounding Telegram, The Open Network, and its native currency, Toncoin. The arrest of Pavel Durov, the charismatic CEO of Telegram, has sent ripples through the crypto market, with Toncoin experiencing a significant drop in value. This event underscores the delicate balance between innovation, regulation, and the freedom of speech in our increasingly interconnected digital world.

On August 24, 2024, the detention of Telegram’s CEO, Pavel Durov, triggered a substantial decrease in Toncoin ($TON) value by approximately 18.7%, as observed at 8:45 a.m. UTC on August 25, 2024. This swift downward trend indicates mounting worry within the cryptocurrency industry about how Durov’s legal predicament might affect The Open Network (TON), a blockchain platform closely linked to Telegram.

Telegram’s initial creation, known as The Open Network, serves as a flexible, blockchain-based platform tailored for the seamless deployment of applications without central authority (decentralized apps or dApps). Its primary goal is to optimize and streamline the use of blockchain technology, aspiring to weave an intricate web of interconnected, decentralized networks.

Toncoin serves as the indigenous digital currency within The Open Network, playing a pivotal part in the system’s functioning. It facilitates transactions, payments, executes smart contracts, and enables network governance. The TON blockchain, recognized for its distinctive multi-blockchain structure, can handle millions of transactions per second, ensuring scalability and preventing network overload. This design empowers The Open Network to accommodate a broad spectrum of applications, positioning it as a flexible platform suitable for both developers and businesses alike.

Although The Open Network boasts innovative technology, it has encountered hurdles, notably after Telegram opted out due to regulatory concerns. Subsequently, the cryptocurrency was renamed from Gram to Toncoin. Now, the TON Foundation, a community-led entity, guides the network’s development and management. Yet, Toncoin continues to collaborate with Telegram, enabling commission-free crypto transactions and access to Telegram Mini apps via the TON Wallet.

The arrest of Durov at Bourget airport near Paris has ignited widespread worry. French authorities took Durov into custody as part of an investigation into the lack of moderation on Telegram, which they suspect has allowed illegal activities to persist within the platform unchecked. Durov, a Russian-French billionaire and co-founder of Telegram in 2013 with his brother, is known for championing privacy and freedom of speech. He frequently resists governmental pressures to censor content on the platform.

In areas such as Russia and Ukraine, Telegram has gained significant prominence, functioning as a primary channel for uncensored content. Following Russia’s invasion of Ukraine in 2022, Telegram has taken on a pivotal part in sharing information from various perspectives of the conflict, leading it to be referred to as a “virtual battleground.” This role, however, has also attracted more attention from different governments, particularly those in Europe, who are worried about security and misinformation issues.

1. People have responded quickly to Durov’s detention. Russian authorities have voiced disapproval over France’s actions, likening it to the rebuke Russia received when it tried to block Telegram in 2018. Elon Musk, the proprietor of X (previously Twitter), fueled the commotion by posting about the arrest on Twitter, insinuating that Europe is trending towards authoritarian rule.

Dangerous times

— Elon Musk (@elonmusk) August 25, 2024

#FreePavel

— Elon Musk (@elonmusk) August 25, 2024

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2024-08-25 12:10