Pavel Durov, the founder of Telegram, was arrested in France on August 24th. French authorities allege that Durov faces charges related to terrorism, money laundering, and drug trafficking. The arrest was reportedly due to Telegram's insufficient regulatory oversight, which has led to the platform being used for various criminal activities, including the spread of misinformation and hate speech.
The news of Durov’s arrest had a significant impact on the cryptocurrency market, especially the value of Toncoin, a token closely associated with Telegram. After the arrest, the value of Toncoin fell by more than 20% and continued to fall.
DOGS Token, which was also set to be listed on August 26, has been caught in the crossfire of Durov’s arrest. The news has injected a level of uncertainty into the market, with investors and traders now questioning the token’s short-term viability. The listing was intended to coincide with International Dog Day, but excitement has waned somewhat following Durov’s arrest. The project team may be re-evaluating its strategy, and the market’s reaction will be closely watched as the listing date approaches.
There is growing speculation that the arrest of Pavel Durov might be part of a broader strategy to limit his increasing influence in the cryptocurrency sector. Through initiatives such as Telegram mini-games and tap-to-earn projects, Durov has been pioneering the integration of blockchain technology with social media, providing users with unique opportunities to earn and interact. Some suggest that his arrest could be a deliberate move by powerful interests to hinder this progress and prevent the further decentralisation of communication and financial power.
Born in Russia, 40-year-old Pavel Durov currently resides in Dubai and became a French citizen in 2021. He is well-known for founding both VKontakte (VK), Russia's largest social media platform, and Telegram, a popular messaging app. Durov left Russia in 2014 after stepping down as VK's CEO due to management disagreements and has since focused on growing Telegram, which now has a significant user base in Russia, Ukraine, and other countries. Telegram is especially popular among Russian-speaking users and has ambitious plans to reach 1 billion users by next year. Forbes estimates Durov's net worth at $15.5 billion.
Telegram founder and CEO Pavel Durov
In 2018, Telegram launched The Open Network (TON), a blockchain project designed to support decentralized applications and digital assets. However, due to regulatory pressures, the project was discontinued in 2020, although it was later taken over by the NewTON team, now known as the TON Foundation. TON aims to simplify cryptocurrency transactions through Telegram's extensive user base, making blockchain technology more accessible and user-friendly.
Despite the project's potential, Durov's recent arrest has heightened fears about Telegram's ability to navigate regulatory challenges. Investors have responded by selling off related tokens, further destabilizing the market.
Before his arrest, Durov announced that Telegram's user base had grown to over 950 million, driven in part by the platform's integration of cryptocurrency games within its "mini apps." One of these games, Hamster Kombat, reportedly attracted more than 300 million players in the months leading up to the launch of its token airdrop (HMSTR).
Despite its large user base, Telegram has not gone public and has raised significant funds through other means, including over $1.5 billion through bond sales and $1.7 billion from cryptocurrency-related financing as of April this year.
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Cointelegraph