Thomas Daniels
Toncoin (TON), the native cryptocurrency of The Open Network, experienced a significant price drop following the arrest of Pavel Durov, CEO of Telegram. In response, futures traders seized the opportunity, leading to a 32% surge in open interest. This increase reflects a heightened level of activity and speculation on the future price movements of TON.
Pavel Durov, the prominent figure behind Telegram and The Open Network, was detained on August 24 upon his arrival at Bourget airport near Paris. Durov is reportedly facing serious charges, including terrorism, trafficking, conspiracy, fraud, and money laundering. The news of his arrest triggered a notable market reaction.
Within hours of the reports, Toncoin’s Open Interest (OI) soared to $303.09 million, according to data from CoinGlass. The influx of traders followed a sharp decline in TON’s price, which fell to $5.71, marking a 14.71% drop since August 24, as per CoinMarketCap data.
Open Interest represents the total number of unsettled derivative contracts, such as options or futures. A rise in OI suggests that traders are increasingly confident in their predictions about the direction of TON’s price, whether upwards or downwards.
Pseudonymous crypto trader Daan Crypto Trades suggested in an August 24 post on X (formerly Twitter) that the majority of traders were likely positioning themselves for a further decline in TON’s price. “Most of these are undoubtedly shorts/hedges,” he remarked.
Such trading behavior is common during periods of uncertainty and fear, especially when they involve key figures in the cryptocurrency space. Traders often take short positions to hedge against potential losses or to profit from anticipated price declines.
Despite the current market sentiment, Daan Crypto Trades expressed optimism about Durov’s situation, stating his belief that Durov would likely be released soon. He cautioned his 380,300 followers, however, about the risks of betting on further declines, advising them to “always be careful catching a falling knife.”
“If he were to be released, that announcement should give a good squeeze. Might see a few days of volatile & choppy price action until then,” he added, suggesting the potential for a sharp rebound if Durov’s release is announced.
Echoing these views, crypto trader Anup Dhungana pointed out that from a fundamental perspective, if Durov is released following interrogation and potential international objections, Toncoin could experience a faster-than-expected price recovery.
