Toncoin Bounces Back Following Durov’s Release

Toncoin (TON), the native cryptocurrency of The Open Network (TON) blockchain, recently jumped back over 9% within a short span.

This upward movement in Toncoin’s value followed a key development linked to the Telegram messaging app, which is closely associated with the TON blockchain.

However, despite this positive price action, the TON blockchain has been grappling with technical issues that cast a shadow over its long-term prospects.

What’s Behind the Rise?

Toncoin’s price surged from $5.30 to $5.80 TON-USDT on Gate.io, marking an increase within just 20 minutes.

This spike was driven by market reactions to the release of Telegram CEO Pavel Durov from French custody.

The association between Telegram and the TON blockchain plays a crucial role in Toncoin’s market dynamics.

Investors often link the performance of Toncoin with developments related to Telegram due to the history and close ties between the two.

However, while this price surge may seem like a positive development, it is essential to understand the broader context and the underlying factors that could influence Toncoin’s future performance.

The price rise reflects short-term optimism, but the long-term sustainability of Toncoin’s value will depend on the TON blockchain’s ability to overcome its current challenges.

TON Blockchain’s Technical Challenges

Over the last few days, the TON blockchain has been facing significant technical difficulties that have raised concerns among users and investors.

On August 27, the network experienced a critical outage, during which block production halted for approximately seven hours.

This kind of disruption is a serious issue in the world of blockchain technology, where uninterrupted operation is vital for maintaining user trust and network integrity.

Although the network resumed operations on August 28, it soon faced another disruption, halting block production again later that day.

Tonscan showed that the network didn’t produce blocks around 16 UTC, which was TON’s second big outage.

The TON blockchain team attributed these outages to an overwhelming influx of transactions related to the newly launched DOGS meme coin.

The sudden spike in activity, triggered by the minting of DOGS tokens, overwhelmed the network, causing significant delays and interruptions in block production.

While the team has assured users that they are actively working on a solution and that user cryptoassets are not at risk, these repeated outages have sparked concerns about the…