Amid ongoing legal scrutiny, the price of Toncoin faces significant pressure as South Korean authorities have initiated an investigation into Telegram, the platform behind the cryptocurrency. This probe is focused on allegations that Telegram facilitated the spread of deepfake pornography, adding to the encrypted messaging app’s global regulatory challenges.
The investigation by the Seoul Metropolitan Police Agency is part of a broader effort to address the rising incidence of digital sex crimes in South Korea, particularly those involving deepfake content that disproportionately targets South Korean women. According to a 2023 report by Security Hero, South Korean women constitute 53% of individuals featured in global deepfake incidents.
Why a Memecoin Nearly Broke the Toncoin Blockchain
This legal scrutiny extends beyond South Korea, with Telegram facing similar investigations in various countries, including EU members, India, and Indonesia. These investigations center around the platform’s encryption practices and their role in the potential spread of harmful content. The arrest of Telegram’s CEO, Pavel Durov, though not directly linked to the South Korean probe, has compounded the situation, raising further concerns about the platform’s future and governance.
As a result of these issues, Toncoin has experienced considerable market volatility. In the last 24 hours alone, the cryptocurrency’s price has dipped by 2.38%, with a trading value hovering just above the $5 mark at $5.16. Additionally, trading volume has declined by 3.69%, indicating a waning interest among general traders, likely spooked by the ongoing legal controversies and the platform’s uncertain future.
Despite the general market bearishness, not all investors are retreating. According to data from Santiment, while smaller investors have been selling off their Toncoin, whale investors have seized this opportunity. Specifically, wallets holding between 1 million and 10 million TON saw a sharp increase in balances on August 26, coinciding with the news of Durov’s arrest. This suggests that while retail confidence wavers, major stakeholders are potentially positioning for a rebound by accumulating more Toncoin at lower prices.
Pixelverse Launches Black Puma Bot NFTs on TON Blockchain
The current legal troubles of Telegram in South Korea and elsewhere could potentially lead Toncoin to breach the $5 threshold if the situation deteriorates further. However, the actions of whale investors indicate that there might still be a belief in the long-term value of Toncoin, assuming Telegram can navigate through its legal challenges effectively.
Investors and traders of Toncoin will need to closely monitor the developments in these investigations and be prepared for further fluctuations driven by both market sentiment and legal outcomes. As the situation evolves, the resilience of Telegram’s leadership and the strategic actions of large-scale investors will be crucial in determining the future trajectory of Toncoin’s price.
Read More: Toncoin (TON) Surges 18% Following Binance Listing Announcement
