In a significant disruption that attracted widespread attention, The Open Network (TON), initially developed by Pavel and Nikolai Durov, founders of Telegram, experienced an unexpected outage late Tuesday evening. The blockchain project abruptly halted transaction processing and ceased block production for over four hours, sparking concerns about its stability and future prospects. This event has drawn particular scrutiny given Telegram’s attempts to distance itself from TON following the intervention of the U.S. Securities and Exchange Commission (SEC).
Technical and Operational Disruptions
The unexpected outage was a major event for TON, a network already dealing with high traffic due to the launch of the $DOGS meme coin. Tonscan, a blockchain explorer, had reported increased network strain before the outage, attributing it to heightened activity around this new token. Despite this, the precise cause of the total transaction halt remains undetermined, adding to the uncertainty surrounding the network’s technological infrastructure and operations.
Legal Troubles and the Durov Connection
The backstory of TON is closely intertwined with the Durov brothers, particularly Pavel Durov, who has been embroiled in legal issues. Originally unveiled in a 2018 whitepaper on Telegram, TON’s native token, Gram, saw a highly successful initial coin offering (ICO). However, the SEC stepped in, classifying the Gram token offering as unregistered securities, forcing Telegram to officially pull back from the project by 2020. Since then, community developers, led by Anatoliy Makosov and Kirill Emelianenko, have taken the reins.
Pavel Durov’s legal woes deepened recently when he was arrested in Paris on charges ranging from facilitating illegal transactions to refusing to cooperate with law enforcement. These incidents underscore the complex legal landscape that TON and Telegram find themselves navigating. Despite its withdrawal from TON, Telegram has recently shown a renewed interest in the network, initiating projects that reward channel owners with Toncoin and enabling content creators to earn cryptocurrency via in-app features.
Market Reaction and User Growth
The market’s reaction to the recent disruptions in TON shows a mixture of stability and caution. While the price of TON remained relatively steady following the outage, it had already declined by more than 20% amidst the news of Pavel Durov’s arrest. Concurrently, Telegram continues to experience significant user growth, surpassing 950 million users as of July, bolstered by the popularity of crypto-based games like Hamster Kombat, which boasts over 300 million players. An anticipated token launch and airdrop for this game are expected to drive engagement even further.
Uncertain Future Amidst Legal and Operational Challenges
This unexpected halt in operations has led to questions about the technical robustness of TON and its capability to sustain long-term growth, keeping the community and stakeholders on high alert about its next steps. Telegram had aimed to launch TON as a groundbreaking blockchain initiative, but the SEC’s actions forced the messaging company to abandon the project and reorient its focus. Despite this separation, TON has continued to operate independently, trying to establish its place in the competitive blockchain space.
