Toncoin Tumbles 20% After CEO Arrest, Ethereum and Crypto Market Feel the Chill
The cryptocurrency world is experiencing a period of volatility, with both Toncoin and Ethereum suffering significant price drops. This downturn coincides with a broader market correction, but the arrest of Toncoin’s CEO, Pavel Durov, in France, has further intensified the selling pressure.
Toncoin Takes a Beating
TON, a cryptocurrency associated with the messaging app Telegram, has been hit particularly hard. The token’s value plummeted by 20% following Durov’s arrest last Saturday. Analysts point to concerning technical indicators, with Toncoin breaking below its 200-day moving average and potentially facing further declines.
Despite its association with Telegram, Toncoin operates independently. The project was open-sourced to avoid regulatory scrutiny, with The Open Network (TON) now overseeing its development.
Liquidations on the Rise
The broader market turmoil has resulted in a surge in liquidations, with over 60,000 traders impacted in the past 24 hours. Long positions, representing bullish bets on future price increases, bore the brunt of these liquidations, totaling over $127 million across centralized exchanges. Ethereum also witnessed significant liquidations, with long positions contributing $46 million to its total of $48 million. Toncoin experienced similar pressures, with long liquidations reaching $1.7 million out of $2.5 million.
Ethereum and Bitcoin Feel the Pinch
While TON suffered the most dramatic losses, both Ethereum and Bitcoin faced price drops. Ethereum fell by over 5%, while Bitcoin, the largest cryptocurrency, saw a more modest decline of around 3%.
Uncertainty Clouds the Future
The current market conditions paint a concerning picture for major cryptocurrencies. Investors are closely monitoring the situation surrounding Durov’s arrest and its potential impact on TON long-term stability. The coming days will be crucial in determining the extent of the market correction and the path forward for Toncoin and the broader cryptocurrency landscape.
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