- Toncoin hit a $13.96B market cap after Telegram CEO Pavel Durov’s arrest caused a 25% drop in value.
- The token achieved 1.1 million daily active users despite the legal challenges facing its key figure.
- Large investors hold nearly 98% of Toncoin’s network, influencing its price stability and future direction.
Toncoin hit a market capitalisation of $13.96 billion after the recent arrest of Telegram CEO Pavel Durov. This accomplishment highlights the cryptocurrency’s strength despite the legal challenges facing its key figure. Durov was arrested at Le Bourget airport near Paris on August 25, which caused Toncoin’s value to drop by 25%.
Market Reaction to Durov’s Arrest
Durov’s arrest led to a sharp drop in Toncoin’s value, falling to $5.24 as investors reacted quickly. This caused mass sell-offs yet the market soon recovered. Toncoin’s market cap settled at $13.96 billion, signalling a possible return to earlier performance levels. Despite the initial shock, the token stayed among the top 10 cryptocurrencies.
The token’s further strength is further shown by its achievement of 1.1 million daily active users (DAUs). This milestone was reached on May 13 when the token was priced at $5.36. The increase in DAUs points to the growing use of Toncoin within The Open Network ecosystem.
Impact of Large Investors
A key factor in Toncoin’s market is the role of large investors within the ecosystem. Data from IntoTheBlock (ITB) reveals that two tokens, Gomining and Ston, are mostly held by a few big investors. Nearly 98% of these tokens were controlled by large stakeholders as of August 19.
These large investors bring stability but also the risk of market swings for Toncoin. Any big move by these investors could lead to sudden changes in the market. As Durov’s legal issues continue, the actions of these investors will be vital in deciding Toncoin’s future market position.
Legal Case and Market Effects
French President Emmanuel Macron spoke about Durov’s arrest during an August 29 press conference. Macron said he was not aware of Durov’s visit to France and stressed that the case would be handled by the French justice system. Durov is facing charges but was released on a €5 million bail bond with conditions that he stay in France and check in with law enforcement each week.
With Durov’s legal problems still ongoing, how will this situation affect Toncoin’s market stability? And as competitors like TRX and Cardano fight for top spots, the coming weeks will be crucial for Toncoin’s future in the crypto space.
The post Toncoin Reaches $13.96B Market Cap After Telegram CEO’s Arrest appeared first on Crypto News Land.
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