Toncoin (TON) 20% Catastrophe: Will It Recover? Bitcoin (BTC) Denied Before $70,000: What's Happening? Ethereum (ETH) Unable to Break This Resistance

U.Today

The price of Toncoin fell by almost 20% in a brief period of time, resulting in a major market blow. Pavel Durov, the billionaire founder of Telegram and a significant figure in Toncoin, was arrested shortly before this drop. Although Durov's arrest was a shock for communities outside of the digital assets world, the cryptocurrency market is focused even more on TON's performance.

As of writing, the price of TON is approximately $5.60, having fallen from highs close to $7.00 earlier this month. The strong selling pressure that followed the announcement of Durov's arrest has made the abrupt decline in value even more severe. Chart by TradingView

For a brief while the cryptocurrency made an attempt to level off around $600 but further losses resulted from that support snapping. Technical indicators indicate that TON is in a risky situation right now.

The 200-day and 50-day moving averages, which frequently serve as psychological barriers for traders, are among the important support levels that the cryptocurrency has broken below. The breaking of these levels suggests that before TON finds any real support it may experience more downward pressure.

Concerns are further raised by the notable increase in trading volume that occurred during the sell-off, suggesting that heavy selling rather than a lack of interest in purchases was the primary cause of the decline.

This implies that many investors were keen to sell their holdings, probably because they were afraid that prices would drop even further. Even though it is difficult to forecast TON's immediate future, the cryptocurrency desperately needs encouraging developments to win back investor trust.

Bitcoin failed to reach $70,000

Bitcoin has recently faced strong opposition as it has gotten closer to the $70,000 threshold. Though traders and investors were expecting a breakthrough due to the previous bullish momentum, Bitcoin has not reached this crucial psychological level, which has resulted in a significant price decline.

The obstacles that the cryptocurrency faces are highlighted by its price performance over the last few days. Bitcoin's rising trajectory started to stall after hitting a peak of $64,600; at this point, the price is down to about $63,951. As Bitcoin got closer to the $70,000 mark, which has been both a target and a barrier in recent weeks, this decline highlights the lack of buying conviction among traders.

There are a number of possible reasons why Bitcoin is not able to continue its upward trend toward $70,000. Above all, it is important to recognize the psychological significance of this round number. Because they expect a reversal or correction, traders frequently place sell orders at these levels, which further builds resistance.

Perhaps a wave of profit-taking was sparked by the failure to break through this barrier, which accelerated the decline. Further evidence that Bitcoin is encountering strong resistance comes from technical indicators. The 200-day moving average is offering more resistance as the price tests the upper bounds of a well-established channel.

Bitcoin may have been overbought during its recent surge, according to the relative strength index (RSI), which could have caused a natural cooling off as buying pressure decreased. With Bitcoin trading just below $70,000, the market's attention will probably turn to whether it can regain momentum and break through this crucial barrier once more.

Ethereum in difficult position

Ethereum is presently having a lot of difficulty breaking through a critical resistance level. Currently trading at about $2,750, the digital asset is battling at the 26-day exponential moving average. The difficulty of Ethereum in breaking through this level suggests that there may be more consolidation or even a possible reversal in the market.

Although Ethereum has recovered from its lows, the price action of late suggests that there isn't the momentum necessary to move past $2,750 and approach the $3,000 mark.

The current state of Ethereum's network is among its fundamental problems. The network's usage metrics indicate that it is far from fully loaded even with the price recovery. The underutilization may be a factor in the absence of purchasing power required to raise the price.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Asia & MENA Crypto Roundup: Korean Founder Secures $80 Million Investment, Dubai Legalizes Crypto Salaries, and More

Beincrypto

BeInCrypto’s Asia Crypto Roundup dives into the region’s most crucial updates and developments. Covering key markets like China, South Korea, Japan, and Singapore, our roundup offers insights into Asia’s regulatory shifts, blockchain innovations, major project launches, and market trends.

Last week’s notable events include Story Protocol’s successful $80 million series B funding round and Dubai’s legal ruling that recognizes cryptocurrency payments for salaries.

Bitpanda and RAKBANK Partner to Boost UAE’s Crypto Access

On August 19, Bitpanda Technology Solutions (BTS) and The National Bank of Ras Al Khaimah (RAKBANK) finalized an agreement to enhance digital asset access in the UAE. This collaboration will enable UAE residents to manage various digital assets securely. The partnership is a strategic move that allows banks to participate in the virtual asset economy without developing in-house capabilities.

In this initiative, Bitpanda Broker MENA DMCC’s operational approval and licensing by the Virtual Assets Regulatory Authority (VARA) are crucial. Similarly, RAKBANK must obtain approval from the Central Bank of the UAE (CBUAE).

Korean Founder Secures $80 Million from Andreessen Horowitz

On August 21, venture capitalist Andreessen Horowitz (a16z) announced leading an $80 million series B funding round for PIP Labs, the developer of Story Protocol. The funding also saw participation from Polychain Capital and notable investors like HYBE founder Bang Si-hyuk and Paris Hilton. This investment propels PIP Labs’ valuation at over $2.2 billion.

Story Protocol is a blockchain startup that helps creators protect their intellectual property (IP). It aims to generate sustainable revenue in an era where AI-driven copyright theft is becoming increasingly prevalent.

Furthermore, it provides creators with a platform to register their IP, set usage terms, and receive compensation for their work. These will effectively protect their creations from unauthorized AI usage.

“We believe that all intellectual and creative works can fall under the category of IP, and all of them are going to face dramatic changes in this new age of AI. […] Story is trying to solve a problem of how IP will be monetized when the entire internet is being scraped by these AI models,” Jason Zhao, Chief Protocol Officer and co-founder of the PIP Labs, said.

Zhao, a former product manager at Google’s AI lab DeepMind, co-founded PIP Labs with Lee Seung-Yoon, a South Korean entrepreneur who sold his mobile fiction platform, Radish, for $374 million in 2021. Together, they bring deep expertise in the tech and creative industries to Story Protocol.

The firm has already attracted over 200 entities to register over 20 million intellectual properties on the platform. Story Protocol is gearing up for its mainnet launch to become a cornerstone for future internet content creation and monetization.

Dubai Recognizes Crypto as Legitimate Salary Payment

The Dubai Court of First Instance has recently recognized cryptocurrency payments for salaries under employment contracts. The ruling was based on Article 912 of the UAE Civil Transactions Law and the Federal Decree-Law No. (33) of 2021. It emphasizes the importance of upholding clear contractual agreements, provided they align with public policy and law.

This ruling contrasts with a previous decision in 2023, where a similar claim was denied due to the plaintiff’s failure to provide a precise valuation of the digital currency involved.

The recent case involved a wrongful termination and unpaid wages claim. The plaintiff’s employment contract stipulated a salary in fiat currency and additional payment in EcoWatt tokens, a form of cryptocurrency.

The employer argued that the crypto payments were not legally enforceable. Still, the court ruled in favor of the employee. It validated the payment in EcoWatt tokens rather than converting them into fiat currency.

Malaysia Cracks Down on Illegal Bitcoin Mining

Following a court order, on August 19, Malaysian authorities destroyed 985 Bitcoin mining machines worth approximately $452,500. The machines, seized during enforcement operations from 2022 to April 2023, were crushed with a steamroller in the Perak Tengah district.

This action came after the arrest of seven individuals involved in illegal Bitcoin mining operations that allegedly stole electricity to power their activities. The suspects were detained separately last week, including three local residents and four foreign nationals.

Sepang District Police Chief ACP Wan Kamarul Azran Wan Yusof stated that these individuals had no prior criminal records, but their illegal activities had caused significant losses to the country. The authorities estimate Malaysia lost as much as 3.4 billion Malaysian ringgits ($757 million) between 2018 and 2023 due to electricity theft linked to Bitcoin mining.

Illegal Bitcoin Mining Rigs Seized by Malaysian Authorities. — Beincrypto

Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir highlighted the growing prevalence of this issue. He emphasized the detrimental impact of electricity theft for crypto mining on Tenaga Nasional Berhad (TNB) and the country.

“The theft of electricity by those who mine cryptocurrency occurs because they believe this activity cannot be detected due to the absence of meters on their premises. However, energy supply companies have various methods to detect unusual energy consumption in an area,” Nasir said.

Tether Unveils UAE’s First Dirham-Pegged Stablecoin

On August 21, Phoenix Group PLC, a holding company listed on the Abu Dhabi Securities Exchange (ADX), unveiled a strategic partnership with Tether, a leading issuer of stablecoins, to introduce a stablecoin linked to the UAE dirham. Green Acorn Investments Ltd. supports this initiative, which aims to revolutionize the digital asset sector.

By merging the UAE dirham’s reliability with blockchain’s technological advantages, this stablecoin provides a reliable digital currency that mirrors one of the world’s most stable currencies. Moreover, it could potentially play a pivotal role in enhancing business operations and expanding growth opportunities in the digital age.

Backed by Phoenix Group and Tether’s financial strength and technical expertise, this stablecoin will be governed by strict regulatory compliance procedures that align with the UAE’s regulatory framework. The introduction of this stablecoin is expected to be globally accessible, with deep roots in the UAE’s economic strength and stability.

Risk Warnings and Disclaimers

Add to Favorites

These Telegram Coins Face Uncertain Future Amid Pavel Durov’s Detention

Beincrypto

As of this writing, NOT’s price has decreased by 20% in the last 24 hours. PAAL’s price, on the other hand, slid by 7.99%. Will these tokens recover?

Notcoin Price at Risk of Further Losses

On August 22, Notcoin’s price was $0.010 and showed signs of reclaiming $0.012. However, Durov’s unfortunate arrest appears to have invalidated that prediction.

At press time, NOT trades at $0.0095 and has nosedived below the descending trendline. According to the daily chart, the drawdown could be linked to the wider market sell-offs, which happened as an aftereffect of the incident in France.

As seen in the chart below, Bull Bear Power (BBP) has dropped to the negative region. The BBP, also known as the Elder Force Index (EFI), gauges if buyers or sellers are stronger in the market.

When the indicator crosses above the zero line, bulls are stronger. However, since it is below it, it means bears are dominating, and the selling pressure, if intensified, could drag NOT’s price further down.

Notcoin Liquidation Heatmap. — Beincrypto

On the same indicator, the higher the liquidity concentration at a point, the higher the chances of a price moving toward that area. As of this writing, Notcoin has a high concentration of liquidity at $0.0090.

Durov’s Detention Halts PAAL AI Rally

The Relative Strength Index (RSI) also proved the thesis. According to the chart below, the RSI, a technical oscillator that measures momentum, was on the cusp of crossing the 50.00 neutral line.

PAAL Daily Analysis. Source: Trading View

Meanwhile, crypto traders on X believe that Durov, who is believed to be worth $15 billion, might be released soon. One of those with such a perception is Daan Crypto Trades.

Risk Warnings and Disclaimers

Add to Favorites

Russia-France tensions flare following Telegram CEO’s arrest: reports

The Block

Russian officials have "reacted angrily" to the arrest of Telegram's founder and CEO, Pavel Durov, on Saturday as he stepped off his private plane at Paris's Le Bourget airport, according to a recent report in the Wall Street Journal.

The Russian Embassy in France released a statement early Sunday alleging the French authorities were refusing to engage with their attempts at accessing Durov. "After the news of P.V. Durov's detention appeared in the media, we immediately requested clarification from the French authorities about the reasons and demanded that they ensure the protection of his rights and provide consular access. As of today, the French side has so far avoided engaging on this issue. We are in contact with P.V. Durov's lawyer," a translated version of the statement reads.

Some Russian officials have described the arrest as an indirect hostile act towards Russia, the Wall Street Journal report states. While some reports indicate Durov is a dual citizen of France and Russia, others state he has dual French and U.A.E. citizenship.

French officials are expected to address the arrest in a statement on Monday, the Paris prosecutor's office reportedly told NPR. According to French media, Durov could face charges related to Telegram's operations and the dearth of moderation on the platform, from money-laundering charges to "pedocriminal content."

Telegram also addressed the arrest for the first time on Sunday, claiming, "Telegram abides by EU laws, including the Digital Services Act," and, "Telegram's CEO Pavel Durov has nothing to hide and travels frequently in Europe," in its statement posted to X.

While some news outlets have stated that Durov could face 20 years in prison, that figure was not present in initial reporting by French media.

Many significant figures across the crypto industry have expressed support for Durov following his arrest, including X platform owner Elon Musk, Ethereum co-founder Vitalik Buterin (who noted his opinion was based on information available so far), TRON founder Justin Sun, Solana co-founder Anatoly Yakovenko, and others.

The price of Toncoin has fallen about 13% since news of the arrest broke, according to The Block's Toncoin Price Page.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

Risk Warnings and Disclaimers

Add to Favorites

FTX’s Reorganization Plan Under Fire for Unequal Creditors Treatment

Beincrypto

FTX’s reorganization plan is under scrutiny as it faces several challenges ahead of its confirmation hearing in October.

On August 23, Andrew R. Vara, the US Trustee overseeing the FTX bankruptcy case, filed an objection to the plan, citing ten major concerns.

US Trustee and Creditors Challenge FTX’s Reorganization Plan

Vara’s primary issue is the legal immunity granted to certain entities involved in the bankruptcy. He argues that the plan provides excessive legal protection to the estate’s administrators and advisers, far exceeding what is typically offered under relevant statutes.

He highlighted that such immunity is unwarranted for professionals whose employment and compensation are already subject to court approval and oversight.

“Pragmatically, such immunity would negate the exceptions for gross negligence, willful misconduct, and fraud. Further, such immunity would far exceed the protections that estate professionals whose employment and compensation are subject to Court approval,” Vara added.

Vara also criticized the plan’s unequal treatment of creditors. He noted that the top 2% of creditors could receive up to 143% of their claims. On the other hand, the remaining 98% would receive only up to 119%. This disparity, according to Vara, raises concerns about fairness.

“The Debtors will not have business operations going forward, [so] reserving the Supplemental Remission Fund for the largest 2% of customers by number does not have a business-related justification,” Vara said.

Additionally, the US Trustee objected to including costs related to last year’s Kroll data breach in the plan. According to him, these costs should not burden the debtor’s estates. Further, he pointed out that estate professionals have already sought millions in compensation for addressing the breach.

“The Plan should be revised to specify that nothing in the Plan is releasing any claims or causes of action relating to the Kroll data breach, and nothing in the Plan shall constitute the allowance of, nor prejudice the ability of parties in interest to object to, any professional fees relating to the data breach,” he stated.

Given these concerns, Vara urged the court to reject the FTX reorganization plan unless the bankrupt firm satisfactorily resolves the issues.

Before the US Trustee’s objection, FTX creditors, including Sunil Kavuri and two others, had also filed an objection to the reorganization plan. They argued that the plan’s broad exculpation provisions and lack of in-kind distribution options for customers are problematic.

The creditors pointed out that the broad definition of exculpated parties contradicts existing case law and could unjustly cover pre-petition conduct. They also reiterated their request for in-kind distributions to help them avoid forced taxation.

“It is painfully apparent that the Debtors’ proposed Plan will inflict additional hardships on customers through forced taxation that could be avoided by making an ‘in kind’ distribution,” the creditors argued.

Despite these objections, FTX claimed last week that its reorganization plan had received strong preliminary support from creditors, with over 95% of them — representing 99% of the claims by value — endorsing the plan.

Risk Warnings and Disclaimers

Add to Favorites

Toncoin Price Crashes Double Digits After Telegram Founder Pavel Durov Is Arrested In France

ZyCrypto

Pavel Durov, the billionaire founder and CEO of the Telegram messaging app, was arrested at Le Bourget Airport in France late Saturday and placed in custody by agents from the country’s National Anti-Fraud Office.

As the shocking news circulated online, the price of Toncoin (TON) — the token of the Telegram-linked The Open Network — logged double-digit losses as traders exited their positions in a panic.

Why Durov Was Arrested

Durov was apprehended while traveling with a woman and his bodyguard from Azerbaijan to Paris, TF1 reported. The 39-year-old was the subject of a search warrant from France’s National Anti-Fraud Office (OFIM), an office tasked with combating sexual exploitation against minors.

The enforcement action originates from a criminal complaint from OFIM over Telegram’s alleged lack of moderation, which has allowed criminal activities to increase on the platform, the report noted. French officials argue that Telegram’s negligence has enabled illegal activities, raising concerns about the platform’s role in fostering terrorism, the sale of narcotics and stolen goods, and fraud.

“Pavel Durov will end up in pre-trial detention, that’s certain… on his platform, he allowed countless offenses and crimes to be committed for which he does nothing to moderate or cooperate,” an investigator from OFIM told TF1.

It’s not clear why Durov, who reportedly travels less to many territories where Telegram is under intense scrutiny, had flown to France on Aug. 24.

Due to the nature of the alleged offenses, the billionaire, who is also a citizen of that country, faces up to 20 years in French prison.

Impact On TON

Originally, the Open Network (TON) was developed internally at Telegram, but the company ditched the project in 2020 due to heightened regulatory scrutiny. Development continued externally through a community of developers, but Telegram has since integrated the blockchain network within its ecosystem.

While that close connection has seemingly fueled the TON price by a staggering 300% in the last year, that association became a bane for the crypto this weekend. TON plunged by as much as 24% to hit $5.31 earlier today. The token has since recouped some of the losses and is changing hands at $5.89 as of press time, a -13.5% change on the day, according to CoinGecko.

Moreover, the blockchain protocol insists it remains fully operational amid Durov’s detention.

“As a community committed to freedom of speech and decentralization, we stand firmly by Pavel during this challenging time,” an official statement on TON blockchain’s X account reads.

Other notable figures in the crypto community have likewise affirmed support for the detained Telegram founder, including Ethereum founder Vitalik Buterin and Dogefather Elon Musk.

Risk Warnings and Disclaimers

Add to Favorites

Shiba Inu to Explore Decentralized Governance with Upcoming DAO Launch

Beincrypto

Shiba Inu plans to launch a Decentralized Autonomous Organization as part of its strategy to become a versatile blockchain platform.

On August 24, Shiba Inu’s marketing lead, Lucie, announced that the network is establishing DAO governance. This move aims to ensure that Shiba Inu’s growth stays true to its core values of transparency and inclusivity.

How DAO Governance Will Transform Shiba Inu

The initiative will allow SHIB holders to participate in the decision-making process within the Shiba Inu ecosystem. Lucie stated that the DAO’s launch will cement the meme coin’s role as a leader in decentralized governance.

“Shib is preparing to become a key player in decentralized governance with the upcoming launch of its DAO. This transition will empower every holder, regardless of the size of their stake, to have a say in the community’s direction,” Lucie explained.

However, the marketing executive mentioned that the DAO is still under development. Despite this, Lucie clarified that the governance model will feature two main councils: the Charity Council and the Culture & Heritage Council. These councils will manage community initiatives, such as charitable efforts and preserving Shiba Inu’s unique cultural identity.

Additionally, Lucie noted that other tokens within the SHIB ecosystem, like BONE and LEASH, will play crucial roles in the DAO process. For example, BONE holders will have the ability to guide the ecosystem’s efforts in advancing blockchain knowledge and innovation. Meanwhile, LEASH holders can vote on issues that promote fairness and transparency within the community.

Lucie highlighted that these developments will increase the number of tokens’ practical applications. According to her, they will become “symbols of what can be achieved when vision, leadership, and a united community come together to create something truly impactful.”

“Shib’s rise from a community experiment to a leading cryptocurrency showcases the power of decentralized initiatives driven by passionate communities. More than just a token, Shib is setting the stage for how decentralized projects can redefine both finance and governance,” Lucie added.

This initiative demonstrates the meme coin’s commitment to integrating real-world utility into its ecosystem. Over the past year, the digital asset has made notable strides, including the launch of Shibarium, a Layer-2 scaling solution, and the introduction of various innovations aimed at enhancing its blockchain network.

Among these initiatives is a plan to build a Layer-3 blockchain on top of the existing Ethereum layer-2 Shibarium. The L3 will incorporate Fully Homomorphic Encryption (FHE) and enable developers to securely process data without decryption.

Risk Warnings and Disclaimers

Add to Favorites