Tron Enters Top 10 Amid Meme Coin Hype as TON Plummets
TRX, the native token of the Tron blockchain, has become the tenth-largest cryptocurrency by market cap after surging 4.4%, flipping Telegram-linked token Toncoin (TON). The development follows news regarding the arrest of Telegram CEO Pavel Durov and the hype around meme coins on the Tron network.
As of this writing, TRX’s market capitalization stands at $13.93 billion, while that of TON is $13.72 billion. According to data from CoinGecko, TRX and TON are changing hands for $0.1609 and $5.43, respectively. TON has shed 19.4% of its value in the past seven days.
Why is TON Plunging?
Toncoin started its downtrend on Saturday after a France-based news outlet reported that the French authorities had arrested Durov in Paris. The French government claimed that Durov’s arrest was due to Telegram’s failure to moderate content or prevent illegal use of the platform by criminals.
According to the France Public Prosecutor’s Office, Telegram has allowed organized criminal organizations and scammers to carry out prohibited activities.
Telegram Responds to CEO’s Arrest in France
In response to these allegations, Telegram released a statement on Monday, arguing that neither the messaging app nor Durov is responsible for the alleged abuse of the platform. It also called for the immediate release of its CEO, terming his arrest illegal.
It is worth mentioning that Telegram abandoned the TON project in 2020. However, considering that most Telegram-based crypto games run on the TON blockchain, many have continued associating the messaging platform with the token, which explains why the digital asset took a hit when news of Durov’s arrest emerged.
Why is TRX Rallying?
Meanwhile, TRX, the token that powers the blockchain controlled and owned by people who use it, has benefited from TON’s troubles and the buzz on meme coins following the rollout of a token-launching platform, SunPump.
Several meme coins have been launched via SunPump on Tron over the last ten days. This has caused increased demand for TRX, thus pushing the token’s price to higher levels. Some of the leading Tron-based meme coins include BULL, SUNDOG, MUNCAT, SUN, and Dragon Sun.
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