How a Crypto Trader Make 400% Profit with Telegram's Memecoin $DOGS While Pavel Durov’s Arrest Wiped Out $2.7 Billion of Toncoin

Telegram Founder’s Arrest Sends Shockwaves Through TON Ecosystem

The crypto world was taken by surprise when Pavel Durov, co-founder of Telegram Messenger, found himself in a legal quagmire.

Durov was reportedly detained at a Paris airport over the weekend on suspicion of failing to implement measures to prevent criminal activities on Telegram.

This arrest, first reported on Saturday, cast a shadow over Toncoin, the native token of The Open Network (TON), a blockchain project closely associated with Telegram.

The repercussions were swift and severe. Toncoin, already a significant player in the crypto space, saw its value plummet, shedding more than 20% in the wake of the news.

As uncertainty spread like wildfire, the token’s market value nosedived by a staggering $2.7 billion, reflecting the deep concerns among investors about the future of Telegram’s blockchain initiatives.

By Monday, Toncoin managed to claw back some of its losses, trading at around $5.65, but the damage was done, with the token still down by 16%.

According to Richard Galvin, co-founder of hedge fund DACM, which had invested in TON tokens,

"The market reaction is simply factoring in the uncertainty surrounding Durov's arrest. It's too early to tell what this means for Telegram and TON in the long term, but anything that weakens Telegram's competitive position is negative for TON."

This sentiment reflects the precarious situation facing the TON ecosystem as it grapples with the fallout from Durov’s legal troubles.

Toncoin’s Fall: Market Values and Investor Concerns

The arrest of Durov sent shockwaves not only through Telegram’s user base but also through the broader crypto community.

The TON blockchain, with its strategic access to Telegram's vast network of 950 million monthly users, was considered a cornerstone in the quest to transform Telegram into a “super-app” akin to China’s WeChat.

The drop in Toncoin’s value wasn’t just a number on the screen—it represented the cracking of an ecosystem that had been bolstered by high-profile backers.

The three-year-old TON Foundation, which had sought to distance itself from direct affiliations with Telegram, now faced scrutiny over the future viability of its projects.

TON had seen a meteoric rise in recent months, with the value of assets locked on its blockchain peaking at $1.1 billion just last month.

However, that figure has since retreated to $661 million, as the arrest cast a long shadow over its operations.

Despite reassurances from Telegram that it complies with European laws and that Durov has “nothing to hide,” the markets remain jittery.

In a show of solidarity, TON’s social media presence echoed calls for Durov’s release, adopting the hashtags #FreePavel and #FREEDUROV and even changing its logo to the “Resistance Dog.”

But this hasn’t quelled investor anxiety, highlighting the deep interconnectedness of the TON blockchain and Telegram’s fortunes.

$DOGS Trader Nets 400% Profit Amid Telegram Controversy

While the TON ecosystem was reeling from the uncertainty surrounding Durov's detention, other areas of the crypto market witnessed contrasting fortunes.

On 26 August, a savvy crypto trader seized an opportunity amidst the chaos, capitalising on the buzz around DOGS tokens, the native meme coin of the Telegram ecosystem.

This trader’s strategy exemplified the volatile yet potentially lucrative nature of crypto trading.

The trader initiated his journey by acquiring 55.9 million DOGS tokens with 3,271 TON, valued at approximately $18.4k.

Timing was everything.

The buzz surrounding anticipated listings on major centralised exchanges (CEXs) like OKX, Gate.io, and Bybit provided the perfect storm.

As DOGS began trading on decentralised exchanges (DEXs) before its CEX debut, the trader seized the moment, selling 20 million DOGS for 6,150 TON, roughly $34.6k.

As the listing news continued to fuel the token’s rise, the trader made a decisive move, depositing the remaining 35.9 million DOGS tokens on centralised exchanges.

This calculated risk paid off spectacularly, earning him a profit of over 400%, amounting to $77.3k from his initial $18.4k investment.

The crypto community buzzed with admiration and speculation, with many enthusiasts expressing optimism about DOGS' future price trajectory given the listing momentum and market optimism.

But what exactly is DOGS?

At the heart of this trading frenzy is the DOGS token, a meme coin native to the Telegram ecosystem.

While its playful branding aligns it with the broader trend of meme coins, DOGS differentiates itself through its integration into Telegram’s burgeoning ecosystem, particularly its utility in non-fungible tokens (NFTs) and related applications.

The recent momentum surrounding DOGS was largely driven by its listing on several major CEXs, including its inclusion as the 57th protocol on Binance’s Launchpool—a milestone that significantly raised its profile.

As a result, DOGS has not only attracted the attention of individual traders looking for quick profits but has also piqued the interest of those who believe in its longer-term potential within the Telegram ecosystem.

As one trader remarked,

“DOGS has potential. The market is buzzing, and with the support from these big platforms, I wouldn’t be surprised to see it go even higher.”

DOGS once traded at $0.00172241 but saw a sharp decline following the arrest. Currently, it's trading at $0.001214, reflecting a 30% drop in the last 24 hours.

However, its trading volume in the past 24 hours has surged to nearly $1.5 million, reflecting the growing investor interest and market activity surrounding the token.

In the volatile world of cryptocurrency, where fortunes can be made or lost in the blink of an eye, the contrasting fates of Toncoin and DOGS on 26 August highlight the complexities and opportunities that define this dynamic market.