The Open Network (TON), a blockchain project initially developed by brothers Pavel and Nikolai Durov, experienced a significant disruption late Tuesday, as users began reporting that the protocol had stopped processing transactions. This unexpected outage has drawn attention to the network, which has deep roots in the messaging platform Telegram, despite the company’s recent attempts to distance itself from the project.
According to Tonscan, a blockchain explorer monitoring TON, the network ceased producing new blocks for over four hours. This disruption led major cryptocurrency exchanges, including Binance and Bybit, to suspend all deposits and withdrawals related to the network, further amplifying concerns among users and investors.
Meme Coin Traffic Strains the Network
Prior to the outage, Tonscan had reported that the launch of the $DOGS meme coin had generated a substantial increase in network traffic. The heightened activity was reportedly causing strain on several central services within the network, leading to brief interruptions. However, the total cessation of transactions indicated a more severe underlying issue, prompting widespread speculation about the network’s stability.
TON’s history is closely tied to Telegram, as the blockchain was unveiled by Pavel and Nikolai Durov in 2018 through a whitepaper published via the messaging platform. The project quickly gained traction, with its initial coin offering (ICO) of the native token, Gram, becoming the second-largest in history. However, the U.S. Securities and Exchange Commission (SEC) intervened, halting the project by classifying the Gram token offering as unregistered securities.
Following this setback, Telegram officially withdrew from the project in 2020. Nevertheless, a group of community developers continued to work on the network, which eventually led to the launch of the current iteration under the leadership of Anatoliy Makosov and Kirill Emelianenko.
Legal Troubles for Durov and Ongoing Association with TON
The disruption of TON’s network comes on the heels of serious legal challenges for Pavel Durov. The Telegram founder was arrested in Paris on Saturday, facing multiple charges, including allegations of facilitating illegal transactions, refusing to cooperate with law enforcement, and allowing illicit activities such as child pornography, drug distribution, organized fraud, money laundering, and illegal cryptographic activities to occur unchecked on Telegram.
Despite Telegram’s efforts to distance itself from TON following the SEC’s intervention, the messaging platform has recently begun to re-engage with the network. This renewed interest includes initiatives such as compensating channel owners with a share of ad revenue through Toncoin (TON), the network’s native cryptocurrency. In August, Telegram introduced a feature allowing content creators to earn cryptocurrency through the in-app currency “Stars,” which can be converted into TON or used for advertising payments within the platform.
Market Impact and Telegram’s Growing User Base
Despite the network outage and Durov’s arrest, the price of TON remained relatively stable on Tuesday, though it has experienced a decline of over 20% since the news of Durov’s legal troubles first broke. The market’s reaction reflects a cautious stance, as investors await further developments regarding both the network’s operational status and the legal proceedings against Durov.
Telegram’s user base has continued to grow, surpassing 950 million in July, fueled in part by the rising popularity of crypto-based games accessible through integrated “mini-apps” within the platform. Among these, Hamster Kombat has emerged as the most popular, reportedly attracting over 300 million players in recent months. The game’s success is likely to be bolstered by its upcoming token launch and airdrop, which could further drive user engagement and adoption.
Uncertain Future for TON and Telegram’s Role
The recent disruption of TON’s network raises questions about the future of the blockchain project and its relationship with Telegram. As the network’s developers work to resolve the current issues, the broader Web3 community is left to speculate on the long-term viability of TON and its ability to maintain user trust in the face of technical challenges and legal scrutiny.
Telegram’s re-engagement with TON, particularly through its integration of Toncoin into the platform’s monetization strategies, suggests that the messaging giant may still see potential in the blockchain project. However, with Durov’s legal troubles casting a shadow over both Telegram and TON, the path forward remains uncertain. The coming weeks will likely be critical in determining whether TON can overcome its current challenges and continue to evolve as a key player in the decentralized internet landscape.
