Telegram CEO Pavel Durov's Arrest Triggers 14% Drop In Toncoin ETP: Here's Why

In the aftermath of the arrest of Telegram CEO Pavel Durov, the 21Shares Toncoin Staking ETP (TONN) experienced a significant decline on the SIX Swiss Exchange on Monday.

What Happened: TONN, which provides investors with exposure to Toncoin TON/USD and staking rewards, saw a 13.93% fall on the SIX Swiss Exchange on Monday after toncoin prices dropped by over 19% following Durov’s arrest.

Ton is the native currency of the TON network, also known as “The Open Network,” a decentralized layer 1 proof-of-stake blockchain, backed by Telegram.

TON offers users decentralized storage, payments, and a wallet for holding crypto directly within messaging apps like WeChat. Pavel’s Telegram also endorses it.

21Shares recently marked a significant milestone with its Toncoin Staking ETP surpassing $100 million in assets under management (AUM).

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Why It Matters: In a show of solidarity with Durov, the Telegram-linked TON network updated its logo and profile pictures on its official social channels to Resistance Dog, a global symbol for the fight against censorship and freedom through digital resistance.

Tesla Inc CEO Elon Musk also made several posts on X calling for Durov's release. He also posted a clip of Durov's recent interview with Tucker Carlson where he praised the X owner for bringing back free speech to the platform.

Pavel Durov, who launched Telegram with his brother in 2013, exited Russia in 2014 after defying government orders to close down opposition groups on his VKontakte social network. Following Russia's invasion of Ukraine in 2022, Telegram emerged as a key platform for unfiltered information from both sides about the war and its political implications.

Meanwhile, other cryptocurrencies were trading mixed. Bitcoin BTC/USD was up 0.08% in the last 24 hours, while Ethereum ETH/USD was down 0.46% and Dogecoin DOGE/USD gained 0.57%.

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Image via Techcrunch

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari