Spanish High Court Suspends Telegram, Causing Toncoin Price to Crash

Spain has suspended Telegram due to copyright concerns, resulting in a dip in the price of Telegram-backed cryptocurrency TON.

Spain's High Court Suspends Telegram, Sending Toncoin Price Plunging

Madrid, Spain - A temporary suspension of Telegram's services in Spain has been ordered by the High Court, in response to complaints from media companies that the platform has been allowing users to upload their content without permission. This development has sent shockwaves through the cryptocurrency market, leading to a significant drop in the price of Telegram's native token, Toncoin (TON).

High Court Intervenes Amid Copyright Concerns

Spain's High Court has taken action to temporarily halt Telegram's services in the country, signaling a growing concern among media companies about copyright infringement. Media giants such as Atresmedia, EGEDA, Mediaset, and Telefonica filed complaints, claiming that Telegram's platform had become a haven for unauthorized distribution of their content.

In accordance with the complaints, Judge Santiago Pedraz has issued a temporary ban on Telegram's services, pending the court's investigation into the allegations. Telegram, which ranks as the fourth most popular messaging app in Spain, boasts an impressive global user base of over 700 million.

Spain's decision to suspend Telegram is a significant move, joining a select group of countries that have taken similar measures. North Korea, China, Iran, and Pakistan have previously blocked the messaging app due to concerns over content regulation.

Toncoin Price Takes a Hit

The court's decision has sent shockwaves through the cryptocurrency market, particularly affecting Toncoin. Developed by Telegram, Toncoin serves as the decentralized blockchain underlying the messaging platform. News of the suspension triggered an immediate 5% drop in TON price.

Despite recent positive developments, including Telegram's upcoming IPO and the securing of $330 million through bond sales, Toncoin's price has struggled to maintain stability. However, in the past 24 hours, TON has managed to recover slightly, gaining 10% and 27% over the past week.

Currently, TON is trading at $4.76, fluctuating between a low of $4.16 and a high of $5.15 within the past 24 hours. The trading volume has witnessed a significant 140% increase, indicating growing investor interest amidst the recent setbacks.

Telegram's Future in Spain Uncertain

The High Court's decision has cast a shadow over Telegram's future in Spain. The suspension comes at a crucial time, as the company prepares for its highly anticipated IPO. The court's investigation is expected to shed light on the extent of copyright infringement and Telegram's role in facilitating it.

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