Regulatory issues have been a major risk factor for crypto assets, recently. Among them, Toncoin (TON) was one of the most affected. After a battle with the US SEC, TON faced another major setback with the arrest of Telegram’s CEO Pavel Durov. Following Durov’s release, Toncoin, which is deeply integrated into Telegram’s ecosystem, went up significantly.
The TON price experienced a major rally on the news that the Telegram CEO was released from custody in France and returned safely to Dubai. On Monday, March 17, Toncoin traded at $3.46, up 28% over the last seven days.
This rally saw TON outperform most other crypto assets, which experienced mixed performance last week. For instance, Bitcoin increased by just 3.65%, whereas Ethereum decreased by 5.77%.
“It feels great to be home,” Durov posted on his Telegram channel, confirming his release from custody. Durov, born in Russia and now a UAE citizen, continues to assert that Telegram is fulfilling its responsibilities in combating crime on its platform.
Durov’s issues with France started in August last year when the billionaire was arrested over his management of the Telegram platform. Namely, French authorities claimed Telegram was not doing enough to prevent criminals from using its platform.
Telegram claims it does not share user information with authorities, making it popular among users concerned with privacy. However, this reputation has also attracted criminals, who have reportedly used it to organize and conduct illegal activities.
What Durov’s Release Means for Toncoin (TON)
Durov’s release has had a major effect on the Toncoin price, as the crypto asset is an offshoot of the Telegram ecosystem.
While an investigation by the US Securities and Exchange Commission resulted in Telegram cutting ties with TON, the crypto is still embedded in Telegram’s ecosystem. For instance, Telegram recently announced that it will only allow TON payments within its mini-app ecosystem.
This close relationship between Toncoin and Telegram means that any risks for the messaging app also impact Toncoin. As such, TON’s future performance will likely depend on the outcome of the ongoing legal battle in France.
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