Is Toncoin the one losing out on Bitcoin’s newest bullrun?
Last Updated on 28 November 2024 by CryptoTips.eu
Although Toncoin, the official cryptocurrency of the social media channel Telegram, has increased by about 20% in the last seven days (the cryptosphere profited from a ‘bounce’ yesterday just as Bitcoin found strong support at the $93,000 level), it still seems to me that this one is the big loser of this crypto bull run. That seems like a contradiction in terms, but allow me to explain.
Bullrun
During almost every Bitcoin bull run in recent years (2017-2018, 2020-2021), there was always one coin from CoinMarketCap’s top 20 that seemed to do less well than the others, for one reason or another.
The last time it was mainly XRP, Ripple Labs’ currency, because Gary Gensler’s SEC had started a lawsuit against the company. This time it seems to be Toncoin, Telegram’s cryptocurrency.
Ever since Pavel Durov’s arrest in France in August, Toncoin has not managed to trade above $7 again (a value it easily crossed earlier in the year), although Telegram admitted to the Financial Times this week that crypto is becoming increasingly important for their revenue stream.
“Telegram reported huge gains in the value of its digital assets in the first half of 2024, which rose to $1.3bn compared with nearly $400mn at the end of last year.”
Surge
Although CEO Pavel Durov has pledged to cooperate with French authorities (Telegram will now pass on IP addresses to European authorities if those addresses are under legal investigation), none of these promises or changes to Telegram’s modus operandi were enough to drop the charges.
As Durov owns the majority of the Telegram holding company and faces a 10-year prison sentence as a result of the charges in France, it makes sense that crypto investors are wary of Toncoin at this time.
As said, I do expect a rise in the Toncoin price if Durov reaches an agreement with the French court before the end of the year, but there is clearly a brake on price growth until such is the case.
