Toncoin, the native cryptocurrency of the TON Blockchain, experienced a significant price dip following a major disruption in its network’s block production process. The outage, caused by an “abnormal load” on the blockchain, raised concerns of a potential selloff, especially given the ongoing uncertainty surrounding Telegram CEO Pavel Durov’s arrest.
The incident occurred when several validators were unable to clean the database of old transactions, leading to a loss of consensus. The TON Blockchain team acknowledged the disruption on X (formerly Twitter), assuring users that their transactions would be processed and no assets would be lost. However, the price of Toncoin, already under pressure due to Durov’s arrest, experienced a further decline.
To resolve the issue, TON Core issued a call to validators to restart at 4 a.m. UTC. Fortunately, the network successfully reestablished consensus, and block production resumed normally. The disruption coincided with a surge in activity on the TON network, driven by the airdrop of the DOGS meme coin and its subsequent listing on Binance.
The outage had a direct impact on Toncoin’s price, which dropped by 1.33% to $5.33 at the time of writing. The cryptocurrency experienced a low of $5.15 during the disruption before rebounding slightly. Additionally, the incident contributed to $1.43 million in long liquidations over the past 24 hours, further weighing on the price.
The uncertainty surrounding Durov’s situation has already had a significant impact on Toncoin. The cryptocurrency’s price has declined by 20% in the past week, with a brief rebound following news of Durov’s potential release being short-lived.
The recent network outage and the ongoing Durov saga have created a challenging environment for Toncoin. While the blockchain network has successfully recovered from the disruption, the broader uncertainty surrounding the project’s future remains a significant factor influencing its price. Investors will be closely watching developments in both the network and the legal proceedings involving Durov to gauge the potential impact on Toncoin’s long-term prospects.
