Toncoin (TON) Crashes 57% to $3.53 After Founder Pavel Durov's Arrest

Toncoin (TON) has dropped by 57% to $3.53, leading to a $9 billion wipeout as its market capitalization fell from $18 billion to $8.8 billion.

Toncoin has crashed by 57% to $3.53, leading to a $9 billion wipeout as its market capitalization fell from $18 billion to $8.8 billion.

The token’s price started crashing after its founder, Pavel Durov, was arrested and charged with 12 crimes in France.

His charges include drug trafficking, sharing of images of child sex abuse, and allowing illicit transactions.

The decline accelerated after most tokens in its ecosystem failed to meet expectations. Hamster Kombat (HMSTR) has crashed by over 80% from its all-time high, giving it a valuation of just $103 million.

Market analysts had projected a valuation exceeding $10 billion due to its 300 million users.

Other tokens in the TON Blockchain ecosystem, including Tapswap, Notcoin, Catizen, and DOGS, have also plummeted by double digits.

Moreover, the number of active wallets on the TON Blockchain has declined significantly. TonStat data indicates that active monthly wallets have fallen to four million, the lowest level since July last year.

The network had over 12 million monthly wallets in August. The number of on-chain wallet activations has dropped to 30,778, down from 655,000 in August.

Other on-chain metrics, including daily transactions and annual inflation rates, have also been bearish for the coin.

To add to its woes, the TON Blockchain has continued to lose market share in other areas.

The total value locked in its decentralized finance ecosystem has dropped to $172 million, ranking it as the 37th-largest blockchain.

Over the past 30 days, its decentralized exchange protocols handled just $629 million in volume, compared to Base, which processed $40 billion.

A look at the daily chart shows that TON peaked at $8.2790 in June 2024. It recently formed a death cross pattern as the 50-day and 200-day exponential moving averages crossed each other.

Toncoin has dropped below the key support level of $4.45, which was its lowest point on September 5. It has also moved below the 61.8% Fibonacci retracement level.

The Relative Strength Index and the MACD indicators are both pointing downward.

Therefore, Toncoin is likely to continue falling, with sellers targeting the key support at $2.68, the 78.6% retracement level.