Despite recent challenges, Telegram’s TON blockchain has seen a surge in enthusiasm, bucking the trend following CEO Pavel Durov’s arrest. The messaging app’s founder, who was detained in France and later released on bail, has been charged with organized crime for facilitating the distribution of child sexual abuse material, drug trafficking, and organized fraud. This situation has notably impacted the price of Toncoin, the network’s cryptocurrency, which plummeted by a third.
However, the situation has paradoxically worked in Telegram’s favor. A vibrant crowd of developers, marketers, investors, and other blockchain ecosystem participants were seen eagerly waiting to attend a TON-hosted event in Seoul, a sign of robust interest and support. This comes on the heels of TON announcing that its blockchain had surpassed 1 billion transactions during Korea Blockchain Week.
The Impact of Durov’s Arrest
Jack Booth, co-founder of the TON Society, which manages the TON community, noted that despite the challenging circumstances, TON achieved all-time highs for active users and transactions. This suggests that Durov’s high-profile arrest may have inadvertently bolstered the app’s and the blockchain’s popularity.
The Complex Relationship Between Telegram and TON
While Telegram and TON Foundation claim to be separate entities, the reality is more intertwined. Durov and his brother Nikolai Durov founded TON under Telegram, but they were forced to abandon the blockchain after the U.S. Securities and Exchange Commission (SEC) sued Telegram for conducting an unregistered initial coin offering. Since then, Telegram has sought to distance itself from TON, at least structurally.
In response, a group of developers and enthusiasts formed the TON Foundation to continue developing the blockchain. TON has since grown to include various supporting entities, such as the TON Society and The Open Platform (TOP), which created a TON-based crypto wallet integrated with Telegram.
Durov’s February announcement to limit Telegram’s share of TON to approximately 10% of the supply was a move to address concerns about the network’s decentralization, but the arrest has still highlighted the perceived interconnectedness between the app and the blockchain.
The Market’s Response
Despite the legal issues surrounding Durov, the market has shown a surprising resilience. Minho, an individual at Korea Blockchain Week, expressed optimism, stating that he bought more TON since the arrest, hoping for a price rebound following Durov’s release.
In conclusion, while Telegram and TON face uncertain times with Durov’s arrest, the blockchain ecosystem’s enthusiasm and resilience suggest that the TON network may continue to grow, regardless of its founders’ legal troubles.
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