Key facts:
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Obviously, TON will not have the support of some governments.
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The price of Cryptocurrency fell after the arrest of Pavel Durov.
Amidst the volatility of the cryptocurrency market, the debate over the viability of Toncoin (TON) as an investment is still raging. Some analysts believe that TON still has room for recovery, while others believe that the road will be rocky.
Despite setbacks such as the recent arrest of Telegram’s CEO, Pavel Durovand technical problems in the TON network, The price of the cryptocurrency has shown a resilient performance, which has generated divergent opinions among specialists.
The trader and market analyst known as Pastanaga Crypto on the social network X highlighted that, despite the adversities, the price of Toncoin has shown positive behavior.
“The currency is performing well despite the bad news, indicating that it could rise significantly if conditions improve,” he said. This optimism is based on the possibility that, with the arrival of positive news, the value of TON could experience a considerable increase.
On the other hand, Pantera Capital, one of the main investors in the TON network, has not withdrawn its money from the project (or at least has not announced it), which suggests that its bullish theses remain valid.
In May 2024, as it was reported CriptoNoticias, the firm announced a significant investment in TON, although it did not specify the exact amount. In June, Pantera Capital opened a fundraising round to continue investing in TON, with a minimum investment of $250,000, which sends a message to the market of your confidence in the project.
TON faces challenges
However, TON faces notable challenges. Although there is no official link between TON and Telegram, they both share a common past, and Much of the TON ecosystem is designed to be used within the messaging appmainly through bots.
This dependence on Telegram can play both in favor and against TON, especially considering that Telegram does not have a large penetration in the United States, the main financial market in the world. In addition, Any negative news about Telegram or its founder could negatively impact TON.
Precisely, the arrest of Pavel Durov In France, suspicions of enabling crimes via Telegram due to a lack of moderators and poor cooperation with authorities have raised concerns among the platform’s users, estimated at nearly 900 million.
This news directly affected TON, whose price fell by 10% in the last seven daysgoing from $6.85 to $5.50 after Durov’s arrest was announced, and is currently trading at $5.15, as shown in the following chart. TradingView.
TON Price. Source: TradingView.
This reflects one of the dangers of cryptocurrencies, which is that they have ties to their founder. Investors can find themselves in a precarious situation, where external events such as legal problems can cause the value of their investment to plummet.
Cryptocurrency faces internal problems
One of the downsides of TON is its infinite maximum supply, which could lead to a long-term depreciation against currencies like Bitcoin, which has a maximum supply of 21 million coins.
While an infinite supply offers flexibility, the risks associated with inflation, volatility, and loss of trust often outweigh the benefits, potentially putting TON at a disadvantage in terms of value and long-term adoption compared to Bitcoin.
The TON network has also experienced technical problems. On August 28, The network experienced a block production interruption due to abnormal network load. Several validators failed to clean up the database of old transactions, leading to the loss of consensus, according to reported the account in X of the network.
Despite this setback, the network managed to recover, reporting on September 2, that it has reached 1 billion transactions on its Blockchain, with half of this volume recorded in the past three months. In addition, the network reached a new all-time high of 1.1 million daily active users last week, as seen in the following chart.
Active users of the TON network. Source: Token Terminal.
While some analysts see TON as an investment opportunity with potential for recovery, others warn of the significant risks it faces, both due to its dependence on Telegram and its technical issues and infinite supply. TON’s future will largely depend on how it handles these challenges in the coming months.
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