TON Surges 29% as Durov Returns to Dubai

TON, the native token of The Open Network layer-1 blockchain, saw a notable 29% increase over the week following a significant development in the legal situation of Pavel Durov, the CEO and co-founder of Telegram. Durov was granted permission to leave France and return to Dubai, a decision that had a direct impact on the value of TON. The token's price rose to $3.46, reflecting a substantial gain compared to the relatively modest movements of major cryptocurrencies like Bitcoin and Ethereum, which fluctuated by around 5% each during the same period.

Durov announced his return to Dubai through his personal Telegram channel, which boasts 11.9 million subscribers. He shared that he had been in France for several months due to an investigation into alleged criminal activities facilitated through Telegram. Despite the ongoing investigation, Durov expressed his relief at being able to return home.

Durov was indicted in August 2024 on charges that Telegram had enabled criminal activities on its platform. As a result, he was initially restricted from leaving France. However, recent decisions by investigative judges allowed him to return to Dubai for a short period, a move that likely contributed to the surge in TON's value.

The Open Network and Telegram, while operating as separate entities, share a common origin and remain closely connected. The Durov brothers, Pavel and Nikolai, initially developed TON under the name Telegram Open Network. However, regulatory scrutiny led them to abandon the project in 2020. Development continued independently, and over the past two years, Telegram has increasingly integrated TON into its operations, utilizing it for various capabilities such as paying channel operators a share of ad revenue. Earlier this year, Telegram and TON formed an exclusive partnership, ensuring that all Telegram mini apps with crypto connections must use TON.

This partnership has significantly boosted crypto user adoption for both The Open Network and Telegram. Mini apps have played a crucial role in increasing Telegram's monthly active user numbers to over 950 million as of June 2024. The NOT token of Notcoin, the first play-to-earn game on Telegram, saw a remarkable surge to a market cap of nearly $3 billion soon after its launch last summer.

Despite its recent gains, TON remains down 58% from its all-time high of $8.25, which was reached last June. The token's price experienced a sharp decline last August following news of Durov's arrest, with many TON project builders voicing their opposition to the detention. The recent legal developments and Durov's return to Dubai have provided a boost to TON's value, highlighting the interconnected nature of Telegram and The Open Network.