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Toncoin (TON), the native token of the The Open Network blockchain, has experienced a significant sell-off in recent days. Despite maintaining its position among the top 10 cryptocurrencies, the price decline has raised concerns about the future of the project.
One of the primary factors contributing to the selling pressure is the exit of a large liquidity provider (LP) from the market. The LP sold over 350,000 TON at a price of $5.57, which could have triggered a domino effect among smaller holders.
The arrest of Pavel Durov, the CEO of Telegram, has also added to the uncertainty surrounding TON. Durov was detained in Paris on allegations of Telegram’s failure to adequately moderate content and cooperate with law enforcement. While Telegram has denied these allegations, the arrest has raised concerns about the future of the project and its compliance with regulatory requirements.
The combination of these factors has created a challenging environment for TON holders. If the selling pressure continues, the price could fall below the immediate support level of $4.8. This would likely lead to further panic selling, as investors seek to exit their positions before the price declines further.
It remains to be seen whether TON holders will follow the lead of the liquidity provider and sell their holdings. The short-term trend of the token will depend on the actions of investors and the broader market sentiment.
The arrest of Pavel Durov and the uncertainty surrounding Telegram’s future could also have a significant impact on TON. If the project is unable to address these concerns, it could face additional challenges and further declines in price.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
