Telegram founder Pavel Durov was arrested on cybercrime charges.

A cloud of skepticism hangs over Toncoin.

Users blame a TON price crash on a technical error. 

Toncoin saw a meteoric rise in 2024, soaring into the CoinMarketCap top 10 by April. This rapid ascent was driven by the introduction of its proof-of-person palm-scanning ID technology, marking a major milestone for the project. The ecosystem continued to expand with the integration of USDT and the launch of popular apps like Notcoin and Hamster Kombat, further solidifying TON’s position in the crypto landscape.

However, recent events have cast a shadow over Toncoin. The arrest of Telegram founder Pavel Durov by French authorities a week ago triggered a 20% drop in the token’s price, raising concerns about its future. Compounding the uncertainty, a recent price glitch briefly displayed severe losses for TON, sparking momentary panic among investors.

Toncoin Price Glitch No Cause For Concern

Toncoin users were stunned on the morning of September 3 (UTC) when CoinMarketCap displayed an alarming 94% drop in TON’s price. Following uncertainty about Telegram’s future after Durov’s arrest, this sudden dip fueled fears that it was all over.  Sponsored

However, it soon became apparent that the dramatic drop was caused by a price indexing glitch on CoinMarketCap, not a real market crash.

Trader Jesse Trading was among the first to notice that TON’s price had reverted to normal. A subsequent check on CoinMarketCap’s TON page confirmed there was no evidence of the massive price crash.

The Toncoin community responded quickly and with a range of emotions to the glitch. On Reddit, some users made light of CoinMarketCap’s history of price glitches, while others reacted more aggressively to what they saw as unwarranted negative sentiment towards TON.

Despite being an irrelevant minor incident, the glitch still fueled growing skepticism about Toncoin’s long-term prospects and its place in the cryptocurrency landscape.

TON Faces a Perfect Storm

A recent DailyCoin article, published shortly before Durov’s arrest, raised several concerns about the Toncoin platform.

The report pointed to issues such as questionable user data handling practices, missing deposits, and allegations that users were banned for complaining about these missing funds.

Additionally, the article connected TON with Russian authorities, adding a new dimension to Durov’s arrest, given Russia’s international isolation by Western governments over the Ukraine war.

Matters have not been helped by a spate of recent major network outages, which Toncoin attributed to abnormal network loads related to the popularity of the DOGS memecoin.

On the Flipside

MultiverseX’s EGLD token also suffered a price glitch, indicating the incident was not Toncoin-specific.

2023 accounts showed that Telegram made a $259.3 million loss, and held $399 million of crypto assets, last year.

French authorities released Durov on bail on August 28.

Why This Matters

The Toncoin price glitch seems to be an isolated incident, but amid heightened attention on the project, its timing has fueled further skepticism.

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