A popular crypto analyst is predicting a rough patch for Toncoin (TON), a major competitor to Ethereum. The reason? Telegram, the messaging platform that initially developed TON, has announced it will share user data with governments under certain circumstances.
Telegram’s Shift
Telegram’s founder, Pavel Durov, recently announced that the platform is updating its terms of service and privacy policy. This update means that Telegram will now provide user IP addresses and phone numbers to authorities in response to legal requests. Durov claims this is necessary to “discourage criminals” and protect the platform’s integrity.
The Impact on Toncoin
Ali Martinez, a crypto analyst with over 72,000 followers on X (formerly Twitter), believes this change could be a major blow to Toncoin. He argues that the ability to send TON within Telegram without long wallet addresses was a key feature for the cryptocurrency. Removing this feature could lead to a sell-off, he says.
A Troubling Trend
Martinez also points to the recent decline of Celestia (TIA), another Layer-1 blockchain, as a potential warning sign for Toncoin. Celestia’s price plummeted from over $20 in February to less than $4 this month. He believes Toncoin’s chart could follow a similar path.
What’s Next for Toncoin?
It remains to be seen how Telegram’s new policy will impact Toncoin’s price. However, Martinez’s prediction suggests that investors should be cautious. It’s important to remember that crypto markets are volatile, and any news, especially regarding privacy and security, can have a significant impact.
