- Toncoin price crashed by double-digit as Pavel Durov, Telegram CEO, was arrested in France.
- French authorities accuse Telegram of facilitating crimes such as terrorism, narcotics trafficking, and fraud, among others.
- On-chain shows TON's Exchange floor balance shows a positive spike, suggesting selling pressure from investors.
Toncoin (TON) plunged 14% in two days, reaching a low of $5.23 on Sunday. As of Monday, it trades at around $5.73. This bearish sentiment was initiated by the arrest of Pavel Durov, CEO of Telegram, by the 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 from reputable French news site TF1 on Saturday.
Durov has been 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 allowed countless misdemeanors and crimes to be committed for which he does nothing to moderate or cooperate."
Due to this arrest, the bearish sentiment surrounding Toncoin includes uncertainty about the project's leadership and direction following Durov's arrest. Durov's pivotal role in its development and association with Telegram, a platform integral to Toncoin's ecosystem, potential regulatory implications for Telegram and its associated projects, and a general loss of confidence among investors have also contributed to the bearish sentiment. The arrest has sparked fears that it could hinder the growth and adoption of Toncoin, leading to increased selling pressure.
The coin plunged 14% in two days, making a low of $5.23 on Sunday. As of Monday, it trades 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.
#FreePavel
— Elon Musk (@elonmusk) August 25, 2024
pic.twitter.com/B7AcJWswMs
Santiment's Exchange Flow balance for TON shows the net movement of tokens into and out of exchange wallets. A positive value indicates more Toncoin entered than exited, suggesting selling pressure from investors. Conversely, a negative value indicates more Toncoin left the exchange than entered, indicating less selling pressure from investors.
In Toncoin's case, the Exchange Flow balance has spiked from -111,280 to 251,220 from Friday to Sunday. This positive uptick indicates increasing selling pressure from investors.
During this event, the TON Supply on Exchanges rose by 8%. This is a bearish development, as investors send their TON tokens from their wallets to exchanges, increasing selling pressure and declining the Toncoin price.
%20[09.46.39,%2026%20Aug,%202024]-638602491928476634.png)
TON Exchange Flow balance and Supply on Exchanges chart
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum bulls could stage 30% rally following Fed Chair's keynote, withdrawing over 284K ETH from exchanges
Ethereum is up over 6% on Friday as bulls have initiated heavy buying pressure following indications from US Federal Reserve (Fed) Chair Jerome Powell that an interest rate cut is imminent.
SUI, OP, ZETA lead $160 million crypto token unlocks next week
The crypto market will witness another round of heavy token unlocks next week, with $164.2 million of cliff unlocks entering into the circulating supply of several top altcoins, per crypto intelligence firm Token Unlocks.
XRP trades above $0.60, Ripple whales shed token holdings
Ripple whales holding between 1 million and 10 million XRP tokens slightly decreased their holdings between August 22 and 23. XRP retail traders holding less than 1,000 tokens accumulated the asset, while whales dropped their assets.
Here's why Bitcoin and the crypto market rallied after Fed Chair's speech
Bitcoin has gained nearly 5% alongside a rally across the crypto market in the past 24 hours following indications of interest rate cut from Fed Chair Jerome Powell's keynote on Friday morning.
Bitcoin: Can BTC break above $62,000 barrier?
Bitcoin (BTC) trades above $60,000 on Friday, gaining more than 4% this week so far, but fluctuating within a range between $57,000 and $62,000 for the last 15 days. On-chain data shows contradicting signs, with institutions accumulating Bitcoin while some whales are selling. Additionally, the US spot Bitcoin ETFs recorded inflows this week, and continued Mt.Gox fund movements could bring volatility in Bitcoin's price in the coming days.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.