Toncoin battles to stay in CoinMarketCap top 10 as Telegram’s pr nightmare continues

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Last Updated on 9 September 2024 by CryptoTips.eu

The link between the value of the social media platform Telegram (which has more than 1 billion users) and its crypto investments was recently made very clear when global business media outlets discovered that Pavel Durov’s company held some $400 million in digital coins at the end of 2023.

I estimate that amount will have increased in 2024 (due to the initial rise of Toncoin, the success of Notcoin and tap-to-earn games such as Hamster Kombat), but in the last few weeks Telegram is probably seeing its crypto holdings lose a lot of value.

The arrest of CEO Pavel Durov in France and the flow of negative reporting surrounding Telegram also has consequences for Toncoin, the platform’s digital currency that is used to pay influencers.

For the first time in about 6 months, the digital currency fell out of the top 10 of CoinMarketCap this weekend. Back in June, Toncoin was being traded for $8. By now, its value has fallen below $5. At the time of writing, Toncoin is doing battle with Cardano to remain in the top 10.

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France

One of the most remarkable details of the whole Pavel Durov arrest story is that he was arrested in France. Pavel Durov has different nationalities, but was clearly most fond of his French citizenship, which he obtained in 2021 via President Emmanuel Macron himself (who was eager to have the international entrepreneur on his territory).

Macron and Durov met in 2018 at the Elysée, the official residence of the French president, about a year after Macron called on young European entrepreneurs to settle in France (where he wanted to create a ‘new Silicon Valley’ near Paris).

Pavel subsequently changed his own surname on his Telegram channel to “Du Rove”, the same name he has on his French passport. All references to his Russian background were gone, Pavel fully opted for France.

Justin Sun

But the love between Telegram and France faded when last year the then French Prime Minister Elisabeth Borne issued a new rule banning cabinet employees from using messaging apps such as WhatsApp and also Telegram, after it emerged that French state secrets were circulating on servers in Dubai (the official headquarters of Telegram) and in Silicon Valley (where WhatsApp owner Meta is headquartered).

After France took a hard line on curbing ‘freedom of expression’ on social media at the beginning of this year, Telegram quickly came into the crosshairs of the French state. Durov had already received several warnings via his lawyer that French authorities were questioning some of Telegram’s practices, but certainly did not expect to be arrested because groups such as IS could still post on his platform. Yet this is exactly what happened.

Ever since then, the value of Toncoin has fallen sharply. Fewer future users for Telegram also means fewer influencers and therefore less value for the currency in which they will be paid. Toncoin’s place in the top 10 of CoinMarketCap was taken over a few days ago by Tron, the coin of Asian star entrepreneur Justin Sun.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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