With the new changes coming to the Telegram mobile messaging app, the Toncoin (TON) market could be impacted.
Pavel Durov, co-founder and CEO of Telegram, announced this week that he is now Users’ IP addresses and phone numbers may be disclosed to authorities. This is in case there are any possibilities of violation of its rules, he explained.
“Now that Telegram’s most attractive feature is no longer available, Toncoin (TON) could be at risk of a sell-off,” warned analyst Ali Martinez. Until now, the app stood out from competitors like WhatsApp by offering data privacy to users. However, with the changes, this will no longer be the case.
Although the development of TON is not related (at least officially) to Telegram today, it has been created by its team, as CriptoNoticias’ Cryptopedia explains. This is why, sometimes, initiatives linked to the mobile messaging application impact its community and the cryptoasset market.
Telegram’s new move comes almost a month after Durov was arrested in France and released four days later after posting a bail of USD 5 million. The arrest occurred in the margins of an investigation that accuses him of facilitating several crimes through the use of Telegram.
For the crimes he is accused of, which include allegedly facilitating tools for the distribution of child pornography, money laundering and drug trafficking, Durov could face up to 10 years in prison. Following his arrest, the businessman has expressed his intention to prevent criminal activity on his platform and comply with regulations in this regard.
TON saw a slight drop after Telegram’s change
Following the announcement of the changes, which compromise the privacy of Telegram users, TON price saw a 2% dropThis move goes against the slight rise experienced by bitcoin (BTC) of 1%.
However, for the moment, Toncoin remains in the lateral range it has been in for three weeks around $5.50 (USD). For now, this movement reflects a recovery from the fall it had after Durov’s arrest, although it has not yet recovered the levels it previously had above $6.50, as shown in the following chart.
Against this backdrop, the TON market could continue to wait and see how Durov’s legal proceedings and Telegram’s changes are in order to comply with regulatory pressures.
It is worth clarifying that, just as TON could suffer a massive sell-off, as anticipated by the aforementioned trader Ali Martinez, the opposite could also occur. If the market takes positively the fact that Telegram gives in to regulators, then the price of TON will probably rise.