Toncoin, the native cryptocurrency of the TON Blockchain, has recently faced significant turbulence, primarily due to a major network disruption and ongoing uncertainty surrounding Telegram CEO Pavel Durov’s arrest. This double whammy has cast a shadow over Toncoin, raising concerns about potential sell-offs and further price instability.
Network Disruption Hits TON Blockchain
The chaos began when the TON Blockchain experienced a severe disruption in its block production process. According to the TON Blockchain team, the issue was triggered by an “abnormal load” on the network, which prevented several validators from cleaning the database of outdated transactions. This, in turn, resulted in a loss of consensus and halted block production.
The disruption was promptly acknowledged by the TON Blockchain team on X (formerly Twitter), where they provided users with updates on the situation. The team reassured users that no cryptocurrency assets were at risk, stating, “Rest assured your transactions will be made, no cryptocurrency assets will be lost due to the issue.”
Despite these assurances, Toncoin’s price began to slide. The cryptocurrency extended its losses into the “red” zone, with the price dipping to a low of $5.15 during the outage. Although the network quickly resumed normal operations after a call to validators to restart, the damage to Toncoin’s price had already been done.
Price Impact and Market Sentiment
At the time of writing, Toncoin’s price stood at $5.33, down 1.33% from its previous value. The crypto experienced a high of $5.63 before the disruption and has struggled to regain momentum since. The recent server issues have only added to the existing pressure on Toncoin’s price.
The situation is compounded by $1.43 million in long liquidations over the past 24 hours, as reported by Coinglass. This liquidation activity has likely contributed to further downward pressure on Toncoin’s price. Adding to the volatility, Toncoin has faced a 20% decline over the past week, exacerbated by the recent arrest of Telegram CEO Pavel Durov in France.
Durov’s arrest on August 25 has introduced an additional layer of uncertainty, impacting market sentiment and contributing to the decline in Toncoin’s value. Although there was a brief rebound in the price on the optimism surrounding his potential release, it proved to be short-lived.
Also Read: Toncoin Drops 20% Amid Telegram CEO’s Arrest – Is This A Buying Opportunity?
Looking Ahead
The Toncoin community is now grappling with a period of heightened uncertainty. The recent network disruption, coupled with the legal troubles of Telegram’s CEO, has created a challenging environment for Toncoin. Investors and enthusiasts will be keenly watching how these factors play out in the coming days and whether the Toncoin price can stabilize amid the ongoing turbulence.
As Toncoin navigates these challenges, it remains to be seen how the cryptocurrency will respond to both network and external pressures. For now, the crypto market is left to grapple with the impacts of these recent events and their implications for Toncoin’s future.
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.
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