Toncoin Bucks Market Slump Following Durov's Statement and TON's $24M DeFi Initiative

By: Eliza Bennet

Toncoin, a digital asset tied to Telegram, has shown resilience in a declining market after the app's founder, Pavel Durov, made a significant statement addressing his recent arrest in France. This comes amid a larger initiative by the TON Foundation to inject $24 million into its DeFi ecosystem, seeking to fortify its position in the decentralized finance sector.

According to data, Toncoin increased by over 4% in the past 24 hours, reaching $5 before settling around $4.77 at press time. In contrast, top cryptocurrencies like Bitcoin, Ethereum, BNB, and Solana experienced losses exceeding 2% within the same timeframe.

Durov’s Response

On September 5, Durov utilized his Telegram channel to express his surprise at the actions of French authorities. He emphasized that Telegram has a dedicated representative in the EU for legal and regulatory matters and highlighted that authorities had other ways to reach him, given his regular visits to the French Consulate in Dubai.

Durov remarked that utilizing antiquated laws to charge a CEO for third-party actions on their platform is a misguided approach. He further stressed that the challenging environment of technological innovation necessitates protection from such personal liabilities to ensure continued development and innovation.

Following his statement, Telegram updated its FAQ page to reflect a shift in its content moderation policies. The platform now encourages using the 'report' button to flag illegal content, marking a significant change from its previous stance of not processing content-related requests.

DeFi Expansion

The TON Foundation's recent $24 million injection is strategically aimed at incentivizing liquidity providers on its two largest DeFi protocols. This move is part of a broader strategy to attract more traders and bolster the network's decentralized finance ecosystem.

The initiative underscores the importance of liquidity in DeFi, providing substantial rewards to those who contribute, thereby ensuring the network remains competitive and attractive to users and investors alike.

Durov has hinted at further enhancements to the messaging application, signaling a commitment to continuous improvement in content moderation and platform security. He mentioned that significant steps have already been taken internally, with more details to be shared soon.