The crypto space continues to evolve with unexpected turns, keeping everyone eager to see what’s next. Thankfully, there are always reliable crypto news sources to satisfy our curiosity. This week in crypto, TON’s price took a significant hit following the arrest of Telegram founder Pavel Durov in France. Durov’s detention is reportedly linked to criminal activities on the Telegram messaging app, though some speculate that the arrest has political motivations.
In other developments, Wyoming is making strides toward adopting crypto payments, potentially outpacing the Federal Reserve in the race to a digital dollar. Consumer payments are often viewed as the “killer app” for crypto, serving as a gateway to mainstream adoption of blockchain technology. Meanwhile, Shiba Inu is making headlines as its Shibarium platform hits another major milestone after a series of crucial upgrades. Read on for detailed coverage of this week’s top crypto stories.
Toncoin Plunges as Telegram CEO, Pavel Durov is Arrested
If you’re a crypto fan, you already know how even the slightest event can send shockwaves through the market. This week, Toncoin saw a dramatic decline after news broke that Pavel Durov, often dubbed “Russia’s Mark Zuckerberg,” was arrested by French authorities upon his arrival in Paris on Saturday, August 24th. Toncoin, the cryptocurrency linked to Telegram, collapsed alongside Notcoin, which dropped by 18.87% within the same timeframe.
Who is Durov and Why Was He Detained?
Pavel Durov, a Russian-born billionaire, is the founder of Telegram, the world’s third most-downloaded messaging app, trailing only WhatsApp and Snapchat. Before Telegram, Durov co-founded VKontakte (VK), a social media platform that became one of Russia’s most popular networks.
Durov first made international headlines in 2013 when he publicly offered a job to Edward Snowden, the former NSA contractor and whistleblower. However, by 2014, Durov sold his stake in VKontakte and fled Russia, citing pressure from the Russian government to hand over data from the accounts of Ukrainian pro-democracy activists—a demand he refused.
In a recent interview with journalist Tucker Carlson, Durov disclosed that President Vladimir Putin’s administration had begun to assert control over VKontakte, prompting him to focus his energy on Telegram, which he co-founded with his brother Nikolai.
Reports indicate that Durov’s arrest in France stems from allegations that Telegram has facilitated cybercrime activities. According to the French prosecutor’s office, Durov is being investigated for 12 different offenses, including the distribution of child exploitation material, enabling illicit transactions, fraud, and refusal to cooperate with authorities by withholding information.
Reactions to Durov’s Arrest
The arrest of Pavel Durov has sparked a global outcry, particularly among advocates for free speech and digital privacy.
Elon Musk, the CEO of Twitter (now X), tweeted the hashtag #FreePavel, adding, “It’s 2030 in Europe and you are being executed for liking a meme.”
Edward Snowden, who gained fame for exposing extensive US intelligence surveillance, called Durov’s arrest “an assault on the basic human rights of speech and association.”
Robert F. Kennedy Jr., who recently withdrew from the US presidential race to endorse Donald Trump, also defended Durov, stating on Twitter, “The need to protect free speech has never been more urgent.”
In response to the growing backlash, French President Emmanuel Macron took to Twitter on Monday, addressing what he described as “false information” circulating about France’s role in Durov’s arrest. He asserted, “This is in no way a political decision. It is up to the judges to decide.”
Wyoming is Pushing Crypto Payments, Aiming to Outpace the Fed with a Digital Dollar
As cryptocurrency investments gain traction, especially with the rise of Bitcoin ETFs, Wyoming is paving the way for the next significant phase in crypto’s evolution: consumer payments. The state is spearheading this initiative with the Wyoming Stable Token, a U.S. dollar-backed stablecoin set to launch in 2025.
Wyoming’s Vision for the Future of Payments
The Wyoming Stable Token is designed to offer businesses and individuals a faster, more cost-effective transaction method while generating a new revenue stream for the state. The token is also intended to serve as a model for a federally recognized digital dollar. Interest earned on the token’s reserves is earmarked to fund public schools, further integrating this digital asset into the state’s economy.
Speaking at the Wyoming Blockchain Symposium in Jackson Hole, Governor Mark Gordon outlined the state’s ambitions: success would be the “adoption of a stablecoin that’s transparent, fully backed by our short-term Treasurys, and dollar-dependent.” He emphasized the importance of repatriating debt, noting, “If it’s bought by Treasurys and supported by Treasurys, it will help stabilize that market to a degree.”
Governor Gordon firmly believes that digital assets are poised to play a crucial role in the financial future, asserting, “The United States has to address this issue. Washington’s being a little bit stodgy, which is why Wyoming, being a nimble and entrepreneurial state, can make a difference.”
The state’s plan involves issuing the token through an exchange, which will then distribute it to retail users. Flavia Naves, a commissioner at the Wyoming Stable Token Commission, explained the practical implications, saying, “When you walk into Cowboy Coffee in Jackson, Wyoming, and want to buy your latte, there will be a wallet in Solana that you can use to buy your coffee.”
Keeping Parity
Stablecoins aim to maintain parity with their underlying assets, typically the U.S. dollar. However, factors such as shifts in demand, poor collateralization, network issues, or regulatory failures can cause deviations from this peg.
To address these concerns, Naves emphasized the importance of a “buffer” in the reserves to account for potential deviations. She also highlighted the transparency of the project, noting, “There will be audits available to the public on how many tokens are in circulation and how much money is in the bank account backing them, so you can always see there is a 1-to-1 stablecoin-to-dollar ratio.” This level of transparency is crucial for establishing and maintaining public trust in the token.
Currently, Wyoming is in the process of evaluating potential partners and vendors with the technological expertise required to bring the Wyoming Stable Token to life.
Shiba Inu’s Shibarium Hits Another Milestone
Shiba Inu’s layer-2 scaling solution, Shibarium, has been making significant strides in the crypto space, marked by a series of impressive achievements. Shibarium has now processed over 90 million transactions since its launch, maintaining an average of 7.5 million daily transactions. The total transaction count is nearing 420 million, reflecting a robust increase in network activity.
Earlier this month, Shibarium recorded 66 million transactions, and since then, this figure has surged by over 35%. This growth underscores the rapid adoption and usage of Shibarium, with the network continuously breaking new records. Data from Shibariumscan also highlights an increase in the total number of blocks, now standing at approximately 2,077,814, and wallet addresses, which have reached 1,305,042. The high transaction volume on the network has led to the expenditure of millions of BONE tokens in transaction fees, setting the stage for the much-anticipated Shiba Inu token burn.
Despite these positive developments, some metrics have underperformed recently. New daily transactions have dipped to the 3,000-4,000 range, a noticeable decline from the millions recorded in the first quarter of the year. The price of Shiba Inu (SHIB) has also seen a slight decrease, down 1.5% in the past 24 hours, currently trading at around $0.0000147. With a market capitalization of approximately $8.6 billion, SHIB remains the 16th-largest cryptocurrency by market cap.
Shibarium’s Anniversary and Upgrades
The significant progress of Shibarium is particularly noteworthy as the protocol celebrates its first anniversary. Over the past year, Shibarium has implemented several critical upgrades aimed at enhancing user experience and providing additional benefits to the community. In April, the team launched a new user interface (UI) update, designed to be “faster, smoother, and more accessible than ever,” with improved compatibility for popular self-custody wallets such as MetaMask, Trust Wallet, and Coinbase Wallet.
Shortly after, Shibarium underwent a hard fork to further enhance user experience, empower developers, and improve block processing times. The team also introduced measures to stabilize transaction fees during periods of high traffic, making costs more predictable and fair for all users.
According to them “we are also smoothing out transaction fee variations during high traffic times, making costs more predictable and fair for everyone. This ensures our platform remains affordable and accessible.”
Most recently, Shibarium adopted a burning mechanism known as the “Burn Portal.” This system is designed to reduce the circulating supply of SHIB by sending a portion of tokens to a designated burn address. Unlike the original program embraced by the meme coin project, this mechanism uses a portion of the gas fees paid in BONE to purchase SHIB tokens, which are then burned. Participants in this initiative must collect a minimum of 100 BONE to be eligible.
In the Shibarium ecosystem, BONE functions as the governance token and plays a crucial role in covering gas fees. Validators and delegators rely on BONE for transactions within the network, and the burning mechanism is a key part of Shibarium’s strategy to increase the value of SHIB over time.
Conclusion
If there’s one thing every crypto investor should remember, it’s the market’s inherent volatility. Toncoin’s price plunged by 18.87% this week, following the arrest of Pavel Durov. Although prices are anticipated to recover, Durov’s arrest, rumored to have political undertones, leaves many waiting on the court’s judgment.
Meanwhile, Wyoming’s stablecoin project has a unique public benefit aspect, with plans to reinvest reserves into Treasuries and use the earned interest to fund public schools. Shibarium, designed to boost the Shiba Inu ecosystem by enhancing speed, scalability, and reducing transaction fees, continues to make progress, which could have a positive impact on SHIB’s price.
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