Toncoin Price Pressure Mounts: Will It Fall Below $5 Amid Telegram’s Legal Troubles in South Korea?

• South Korean authorities have launched an investigation into Telegram for allegedly aiding the spread of deepfake pornography.

• The probe adds to existing investigations in other countries, intensifying scrutiny on the platform amid global concerns.

South Korean authorities have launched a preliminary investigation into Telegram, the encrypted messaging app, as part of a broader effort to combat the spread of deepfake pornography. This comes amid rising public and political demand after a number of cases of sharing adult content with South Korean women were identified on the social network. The probe conducted by the Seoul Metropolitan Police Agency is centered on whether Telegram has aided in the distribution of this material, according to a Reuters report. 

Woo Jong-soo, the chief of the National Office of Investigation, stated that the investigation is in progress and referred to the French counterparts who have already started probing into Telegram. The South Korean Cyber Investigation Bureau, however, has refrained from providing further details about the current investigation. 

This investigation is a timely development in South Korea’s fight against the rising cases of digital sex crimes, which have been on the rise due to the use of platforms such as Telegram. The authorities intend to engage with counterparts from other countries, including French counterparts, to identify possible mechanisms for investigation and possible prosecution of those involved in the dissemination of deepfakes. 

Telegram Faces Intensifying Global Scrutiny over Deepfake Concerns

According to a 2023 report by Security Hero, a U.S. identity theft protection startup, South Korean women constitute 53% of individuals featured in such deepfakes globally. In addition,  the South Korean police said that deepfake-related sex crimes have risen this year, with 297 cases, up from 156 cases in 2021. 

The probe in South Korea is not the only one, as Telegram has been under similar pressure in several other countries, including EU members, India, and Indonesia. These investigations may pose a significant threat to the platform, in which the company has always emphasized its focus on users’ privacy and encryption. 

The arrest of the CEO of Telegram, Pavel Durov, has only added more attention to the platform across the globe. While the specific allegations against Durov remain unknown, his arrest has led to speculations regarding the management and direction of Telegram. 

During the same period, the price of Toncoin, the cryptocurrency that is linked to Telegram’s blockchain, has been rather volatile. In the last 24 hours, the price of Toncoin has decreased by 2.38%, trading at $5.16. The trading volume of the cryptocurrency has also dropped by 3.69%, indicating that the interest of traders has decreased. 

Toncoin Whales Take Advantage of Price Dip

Despite the bearish market outlook, the big investors in Toncoin, the whale holders, have not been deterred. According to Santiment, the number of TON supply held in wallets with a balance between 1 million and 10 million TON has risen sharply. This surge was recorded on August 26 at the same time when the information about Pavel Durov’s arrest in France appeared. 

However, while these whales were buying TON, smaller investors appeared to be selling their assets. Wallets holding 10,000 to 1,000,000 TON experienced a decrease in their balances during the same period. This behavior hints at the fact that major investors could be taking advantage of the price drop in the market, possibly planning to buy back Toncoin in the future.