Toncoin (TON), the cryptocurrency developed by The Open Network, witnessed a sharp increase in trading activity following the arrest of Telegram CEO Pavel Durov. On August 24, Durov was detained upon his arrival at Le Bourget airport near Paris, facing a series of serious allegations, including terrorism, trafficking, conspiracy, fraud, and money laundering.
In the wake of Durov’s arrest, Toncoin’s Open Interest (OI)—a measure of the active futures contracts on the asset—soared by 32% to $303.09 million, according to data from CoinGlass. This spike in OI indicates a significant shift in trader behavior as many sought to protect their investments or speculate on the volatile market conditions.
As the news broke, Toncoin’s price took a hit, dropping 14.71% to $5.71, as reported by CoinMarketCap. The market sentiment seemed to lean towards pessimism, with many traders taking short positions, anticipating further declines in TON’s value.
Pseudonymous crypto trader Daan Crypto Trades noted the increase in short positions, explaining that traders often move to hedge against potential losses when uncertainty looms, particularly when a key figure like a cryptocurrency’s founder is involved in legal troubles.
Daan also speculated that Durov’s arrest might not lead to a prolonged detention, suggesting that his release could trigger a swift price recovery for Toncoin. He cautioned his followers against making rash decisions in a volatile market, warning, “Always be careful catching a falling knife.”
Similarly, crypto trader Anup Dhungana suggested that Toncoin could rebound quickly if Durov is released, especially if international scrutiny leads to a resolution of the charges. He emphasized that the market could see a quick turnaround, underscoring the unpredictable nature of cryptocurrency trading in the wake of such high-profile events.
The arrest of Durov has undoubtedly shaken the Toncoin market, leading to increased speculation and uncertainty among traders. As the situation unfolds, market participants are closely watching for any developments that could impact Toncoin’s future trajectory.
