Telegram Drama Tanks Toncoin | OpenSea Feels SEC’s Squeeze

App-linked crypto nosedived 20% after Durov’s arrest.

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Nina Bambysheva Staff Writer, Forbes Money & Markets
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Steven Ehrlich Director, Forbes Digital Assets
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TELEGRAM CEO ARREST RATTLES CRYPTO MARKETS

When Pavel Durov, the elusive Telegram founder and CEO, was arrested by French authorities last Saturday, the ripples were felt far beyond Paris. Toncoin, the cryptocurrency linked to the messaging app, has taken a 20% plunge since the news broke. The coin, native to The Open Network blockchain—a direct descendant of the Telegram Open Network conceived by Durov and his brother—has seen its value slide from $6.70 to $5.40 as of Friday morning. Though TON now operates independently, Telegram still allows users to make payments with the token—apparently, bad news for Durov is bad news for Toncoin.

The crypto community, heavily reliant on Telegram, is rallying around the Russian-born billionaire. Tron blockchain founder Justin Sun has pledged $1 million to establish a blockchain-based decentralized autonomous organization (DAO) aimed at securing Durov’s “legal freedom.” Meanwhile, Durov’s arrest is sending shockwaves through the venture capital world, where investors like Pantera Capital Management, Animoca Brands and Mirana Ventures have significant stakes in Toncoin.

NFT MARKETPLACE OPENSEA GETS SEC’S WARNING

The U.S. Securities and Exchange Commission has issued a Wells Notice to OpenSea, signaling its intent to sue the company. Once the go-to platform during the NFT gold rush, OpenSea has seen its shine fade as rivals like Blur and Magic Eden emerged.

According to CEO Devin Finzer, the SEC alleges that the tokens on its platform are unregistered securities—a claim that could see OpenSea join the growing list of crypto companies tangled in legal battles with the regulator. Kraken, Coinbase, Consensys and Uniswap have all been in the SEC’s crosshairs, with some still engaged in legal proceedings. However, the agency’s latest action is a “move into uncharted territory,” wrote Finzer. “By targeting NFTs, the SEC would stifle innovation on an even broader scale: hundreds of thousands of online artists and creatives are at risk, and many do not have the resources to defend themselves. We should not regulate digital art in the same way we regulate collateralized debt obligations.”

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CURRENT PRICE OF TOP 5 COINS (7-Day % Change)

Coin

Price

Percent Change

Bitcoin (BTC)

$58,566

4.9%

Ether (ETH)

$2,465

7.9%

Tether (USDT)

$1.00

0.0%

Binance Coin (BNB)

$528

9.3%

Solana (SOL)

$134

7.3%

Sources: Forbes Digital Assets, CoinGecko. Prices as of 1:18 p.m. on August 30, 2024.

VENEZUELA: HOW CRYPTO POWERS RESISTANCE

In the chaotic aftermath of Venezuela’s July presidential election, where the National Electoral Council still hasn’t delivered clear results, the Maduro administration is taking drastic measures—detentions, censorship and good old-fashioned repression against the efforts of the opposition coalition. But amidst the turmoil, bitcoin and stablecoins have become tools of resistance, funding legal defense efforts and supporting human rights activists fighting against the regime’s strong-arm tactics. Read more.

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