Digital assets related to the Telegram app have lost about $2.7 billion in the crypto market due to uncertainty following the news of the arrest of its founder, Pavel Durov at a French airport.
He was arrested on August 24 last because he was suspected of failing to take steps to prevent criminal activities that were rampant on the Telegram social application.
The TON network, which has access to 900 million users and provides sharing services such as payments in internet gaming applications, has fueled speculation that it has the potential to become a 'super application' like China's WeChat.
The value of the asset jumped this year to a high of $1.1 billion last month and shrank to $661 million recently.
Meanwhile, the value of Toncoin tripled last year and the token has a current market value of approximately US$14.4 billion.
However, the connection between Telegram and TON has been a surprising news for the cryptocurrency market. Pantera Capital Management in May described the purchase of Toincoin as the firm's largest investment.
According to Richard Galvin, co-founder of hedge fund DACM said it is too early to make any official statement. Crypto market sentiment is now more focused on the current TON position.
Recently, the authorities have blamed Telegram for taking the facilitation of criminal activity for granted and there are some who support the freedom of users.
The Telegram application is now increasingly popular in the crypto community, especially in sharing investment management tips.