Is A Selloff Ahead For Toncoin Price As TON Blockchain Faces Major Outage?

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As a seasoned analyst with years of experience navigating the volatile world of cryptocurrencies, I can’t help but feel a mix of emotions when witnessing the tumultuous journey of Toncoin. The recent server disruption on the TON Blockchain, caused by an “abnormal load,” is yet another hurdle for this promising crypto to overcome.

Toncoin, the cryptocurrency tied to the TON Blockchain, experienced price fluctuations after a significant interruption in its block production system. This interruption was caused by an “unusual strain” on the network. The recent downtime has sparked worries about Toncoin sell-offs, as the digital currency is currently dealing with uncertainty due to the arrest of Telegram CEO Pavel Durov.

TON Blockchain Faces Server Disruption

The outage led to several validators being unable to clean the database of old transactions, resulting in a loss of consensus. The disruption was first acknowledged by the TON Blockchain team on X (formerly Twitter), where they informed users about the issue. This raised concerns of further dump in TON price.

“The TON Blockchain is facing an interruption in block creation at the moment. This problem stems from an unusually high amount of activity on the TON network. Due to this overload, several validators are having trouble clearing their databases of old transactions, resulting in a loss of consensus among them.”

They additionally provided peace of mind to users, confirming, “Don’t worry, your transactions are safe and none of your cryptocurrency assets will vanish as a result of this problem.” Yet, the price of Toncoin quickly dipped into the negative market zone following that.

To solve the issue, TON Core requested validators to restart at 4 a.m. UTC, with the aim of helping the network re-establish agreement among its nodes. Luckily, this attempt proved successful, as the TON Blockchain team later announced that “TON is now functioning correctly! We’re back up and running.”

Previously, the TON network underwent a significant test due to the activation of the airdrop for the DOGS meme coin. During this period, the DOGS token recorded an astonishing transaction speed of 150,000 times per second. Additionally, the listing on Binance further fueled network activity.

Toncoin Price Dips

Regardless of the resolution, the event significantly influenced Toncoin’s price. At this moment, TON is trading at a 1.33% decrease, amounting to $5.33. During the incident, it dipped as low as $5.15 but has since slightly recovered. The peak for the day was set at $5.63 before the server disruption occurred.

1. In the last day, Toncoin experienced approximately $1.43 million worth of long positions being forcedly closed, as reported by Coinglass. This substantial liquidation could potentially continue pushing the price down. Additionally, the arrest of Telegram CEO Pavel Durov in France on August 25 has already been putting pressure on Toncoin’s price.

Over the past week, the ambiguity regarding Durov’s circumstances seems to have triggered a 20% drop in the value of TON. Furthermore, this temporary uptick in price due to hopeful speculation about his possible release has proven fleeting as well.

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2024-08-28 10:35