A popular cryptocurrency analyst believes one of the major Ethereum (ETH) competitors could be on the verge of a massive sell-off.
Ali Martinez told her 72,400 followers on social media platform X that Toncoin (TON) could be in for a rough few weeks following a new announcement from messaging platform Telegram that it would be handing over user data to governments in certain circumstances.
Telegram originally developed Toncoin in 2018, but parted ways with the project in 2020 following a legal dispute with the U.S. Securities and Exchange Commission (SEC). The Open Network, an open-source community of developers, took over technical management that year.
However, TON can still be sent to 900 million users within the Telegram platform without having to enter a long wallet address.
Telegram founder and CEO Pavel Durov was arrested by French authorities last month on charges of failing to moderate content related to drugs, fraud and other criminal activity, a move that has been condemned by many prominent free speech advocates.
On Monday, Durov announced via Telegram that he would be updating the terms of service and privacy policy on his platform.
“We make it clear that the IP addresses and phone numbers of those who violate our regulations may be disclosed to the relevant authorities upon valid legal request.
These measures should deter criminals. Telegram Search is for finding friends and discovering news, not promoting illegal products. We will not allow malicious actors to threaten the integrity of our platform for nearly a billion users.”
Martinez said removing Telegram’s “most attractive feature” could lead to a sell-off of TON.
He also thinks that TON’s chart “could be following the path” of Celestia (TIA), a layer 1 modular blockchain that crashed from over $20 in February to under $4 this month.
At the time of writing, TON is trading at $5.70. The 10th largest cryptocurrency asset by market cap is up about 1.5% over the last 24 hours.
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