The Open Network (TON) blockchain, closely linked to the popular messaging app Telegram, has been in the spotlight recently due to a series of events that have shaken the crypto community. From network outages to legal troubles for Telegram’s CEO, the TON ecosystem is navigating rough waters.
Network Hiccup Causes Concern
On August 28, 2024, TON experienced a major setback when its blockchain stopped working for over six hours. During this time, no new transactions could be processed, leaving users and investors worried.
The problem was caused by too many transactions happening at once, which overwhelmed the network’s validators—the computers that keep the blockchain running smoothly.
This surge in activity was reportedly linked to the launch of a new memecoin called DOGS on the TON blockchain. The DOGS token had planned a big giveaway, which attracted a lot of attention and led to a flood of transactions.
Major crypto exchanges had to pause deposits and withdrawals of TON-related assets during the outage. This move was necessary to protect users’ funds and prevent confusion while the blockchain wasn’t working properly.
Telegram CEO’s Legal Troubles Add to Uncertainty
Adding to TON’s challenges, Pavel Durov, the founder and CEO of Telegram, was arrested in France on August 24, 2024. French authorities detained Durov at Paris’s Bourget Airport, citing concerns about how Telegram moderates content on its platform.
The arrest has sparked a heated debate about online privacy and the responsibilities of social media companies. Telegram is known for its strong encryption and commitment to user privacy, which has made it popular but also controversial.
Many Telegram users and supporters of TON view the arrest as an attack on digital freedom. In response, a petition calling for Durov’s release quickly gathered nearly 1.7 million signatures through a Telegram mini-app.
Impact on TON’s Cryptocurrency
The native cryptocurrency of the TON blockchain, called Toncoin, has felt the effects of these events. Following Durov’s arrest, Toncoin’s price dropped by about 20% in just a few days. The network outage caused further uncertainty, with the price falling another 2.14% to $5.27.
Despite these setbacks, some investors see potential in TON. The blockchain was originally developed by the Telegram team but is now run by an independent community. It aims to offer fast transactions and support for decentralized applications (dApps).
Looking Ahead
As TON works to resolve its technical issues and the crypto community watches Durov’s legal situation unfold, the future of the blockchain remains uncertain. The strong response from Telegram’s user base shows there’s still significant support for the project.
However, TON will need to prove it can handle high transaction volumes without crashing if it wants to compete with other major blockchains. The ongoing legal challenges faced by Telegram could also impact TON’s development and adoption.
TON Price Action Post
At the time of this report, TON’s price continues to struggle as it coasts around $5.50. Earlier on August 28, the price recorded a sharp surge towards the $6.00 round figure but was repelled by the $5.98 resistance line.
While the $6.00 mark is the immediate target for bulls right now, bullish sentiment might not return for TON until the price returns above $7.00, the pre-Durov-arrest price point.
TON Statistics Data
TON Current Price: $5.50
Market Cap: $14B
TON Circulating Supply: 2.5B
TON Total Supply: 5.1B
Market Ranking: #9
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