- Following Pavel Durov’s arrest, Toncoin’s price fell sharply, triggering a 32% surge in open interest among traders.
- Traders are taking short positions on Toncoin, anticipating further declines amid market uncertainty.
- Speculation about Durov’s potential release has traders poised for possible price volatility and rebound.
The arrest of Telegram CEO Pavel Durov has sent shockwaves through the cryptocurrency market, particularly affecting Toncoin, the native cryptocurrency of The Open Network (TON). Durov was detained at Bourget Airport near Paris, facing serious charges including terrorism and money laundering, which immediately impacted Toncoin’s market performance. Shortly after the news of Durov’s arrest broke, Toncoin’s value tumbled, leading to a notable 32% increase in open interest, according to data from CoinGlass. This indicates a significant rise in the number of derivative contracts like futures and options, as traders look to hedge against or profit from the ongoing uncertainty.
At the time of reporting, the price of Toncoin had dropped by 14.71% since the news of the arrest, trading at $5.71. The increase in open interest suggests that most traders are leaning towards short positions, expecting the price to fall further.
Traders Anticipate Further Developments
Crypto trader Daan Crypto Trades expressed on social media that the surge in open interest largely consists of short positions or hedges against further price drops. This strategy is common among traders when uncertainty hits the market, especially when it involves key figures associated with a cryptocurrency.
However, there is also speculative anticipation that Durov’s situation might see a quick resolution. Daan cautioned his followers about the risks of betting on such outcomes, using the analogy of “catching a falling knife” to describe the potential dangers of entering the market during such volatile conditions.
Another trader, Anup Dhungana, pointed out that if Durov is released sooner than expected, especially after facing serious international scrutiny, Toncoin could experience a swift price recovery. This scenario would likely result in volatile and choppy price movements until the situation stabilizes.
