- • Tron’s TRX has become the 10th largest cryptocurrency by market cap, surpassing Toncoin (TON) following the arrest of Telegram CEO Pavel Durov.
- • Telegram’s TON token plunged 17% over the past week as Durov’s arrest raised concerns about the platform’s compliance with regulations.
- • The surge in interest for meme coins on Tron’s network, fueled by the launch of the SunPump platform, has contributed to TRX’s rise to the top 10 cryptocurrencies.
The price of Tron’s TRX token has surged into the top 10 largest cryptocurrencies by market capitalization. This comes on the heels of Telegram CEO Pavel Durov‘s arrest in France and a corresponding drop in the price of Telegram’s affiliated TON token.
Arrest of Telegram Founder Sinks TON Token
Telegram CEO Pavel Durov was arrested by French authorities over the weekend outside of Paris. Durov arrived on a private jet from Azerbaijan. The closely affiliated TON token saw its price plummet following the news.
TON is independent from Telegram, but the messaging app has increasingly integrated the token. Telegram uses TON to pay channel operators and launched an in-app currency called Stars tied to TON. There’s also been a surge of crypto games on Telegram utilizing TON for tokens.
Following the arrest, Telegram claimed Durov has nothing to hide and that the platform follows EU laws. French authorities allege Telegram enables illegal activities by not moderating enough.
Tron Meme Coins See Spike in Interest
The hype around meme coins and tokens may not be over, just transitioning to new chains like Tron. The network’s flagship meme coin, Sundog, surged after launching August 15. At one point its market cap exceeded $300 million.
Tron aims to build a decentralized internet. Activity has jumped following the launch of SunPump, a platform for launching meme coins. SunPump’s growth helped boost TRX’s price last week.
Meme coins are highly volatile and popular for speculative trading. The surge of new meme coins on Tron has fueled more interest.
Conclusion
Telegram’s legal troubles have created an opening for Tron and meme cryptocurrencies to grab the spotlight. Tron’s ascension to the top 10 largest cryptocurrencies shows the power of hype and speculation in the crypto sector. However, it remains to be seen whether new meme coins on Tron can sustain interest long-term.
