Notcoin and Hamster Kombat Down After Telegram Founder’s Arrest

• Notcoin ($NOT) decreased by 12.69% weekly and Hamster Kombat ($HMSTR) by 6.10% in the last seven hours after Pavel Durov's arrest.
• The French government arrested the Telegram founder for not cooperating with ongoing investigations into the use of Telegram for alleged criminal purposes.
• $TON's TVL has fallen by 36% in the last 24 hours, showing The Open Networks is also feeling the impact of Durov's arrest.

After the Telegram founder's (Pavel Durov) arrest on Saturday evening in Paris, Notcoin and Hamster Kombat have also been impacted.

$NOT decreased by 12.69% and its24-hour trading volume is down by 30.55%, showing significant fear, uncertainty, and doubt (FUD) among investors.

Hamster Kombat ($HMSTR) shows extremely high' volatility on Coincodex, though the overall sentiment remains bullish. The coin (although not officially launched yet) has fallen by 6.10% today.

How will this unfold, and will Pavel Durov's arrest put the two projects at further risk? Let's see.

Unlikely to be Released in August, Durov's Arrest Sows FUD

The current Polymarket odds of Durov's release in August are 26%, a 24% decrease since the initial 50% on August 25. After the French authorities seemed to hold Durov in pre-trial detainment, the odds lowered to the current 26%.

Durov was arrested after refusing to cooperate with ongoing investigations into the use of Telegram for alleged criminal purposes. Telegram issued a statement, saying it's absurd to claim that a platform or its owner are responsible for abuse of that platform.

It's worth noting that Telegram is based in Dubai, UAE. Technically, even if Durov is found guilty withholding user data, it might not impact Telegram's operations beyond limiting/preventing his own contribution to the company.

The Chat Control' EU law would change things for the worse, though the law wasn't passed yet, despite numerous attempts.

After Durov's arrest, Rumble (YouTube alternative) founder and CEO Chris Pavlovski left Europe since French authorities had threatened' the company in November 2022.

He also made a scathing public statement where he criticized the French government for their arrest of Pavel Durov.

Rumble will not stand for this behavior and will use every legal means available to fight for freedom of expression, a universal human right. We are currently fighting in the courts of France, and we hope for Pavel Durov's immediate release.Chris Pavlovski, Rumble CEOAre $NOT and $HMSTR Going Down? What About $TON?

$NOT has dropped by 15.24% since yesterday, from $0.01111 to $0.009469. Its 24-hour trading volume is also down by 30.55%, and its market cap has fallen below $1B.

Due to current events, Notcoin is down by 12.21% across its entire lifetime. This has happened three other times historically, with Durov's arrest marking the fourth.

Hamster Kombat isn't looking any better, either. While it wasn't launched yet, several exchanges are trading Hamster Kombat IOUs (very risky in our opinion).

On the day of the arrest, $HMSTR dumped by 7.45%, regained ground, and fell again by 6.10% today. This shows there's significant FUD among investors, and diamond hands HODLing doesn't seem to be a priority now.

Despite a hint of $HMSTR being listed on Binance earlier this month, helping the coin recover some of its losses, Durov's arrest might throw a wrench and even delay its upturn.

Both coins have seen a stark decrease in price, and we estimate this will continue until more developments come through, or the company demonstrates it can run effectively without Durov's involvement.

Another worrying indicator is $TON's (unofficial Telegram coin) massive 36% TVL dump in the last 24 hours. It fell from $508.27M to $325.06M between August 24-25, settling at $388.24M today.

This tells us Telegram's entire crypto ecosystem' is feeling the impact of Durov's arrest.

Our Summary - How Bad Is Durov's Arrest for Crypto?

Pavel Durov's arrest by the French government has undoubtedly negatively impacted $NOT, $HMSTR, and The Open Network.

But will these effects last?

If Durov is released, the coins will likely make a full recovery, especially with enough community support. However, if the French government finds him guilty, we could be looking down the barrel of a more long-term bearish scenario until the company proves it can run effectively without Durov.

At this point, we can only speculate on the news. With more incoming developments, what happens next should become increasingly clear.

References

• Hamster Kombat Price Performance (Coincodex)
• Polymarket Odds on Pavel Durov's Arrest (Polymarket)
• Chris Pavlovksi X About Durov's Arrest (X)
• $NOT Performance (CoinMarketCap)
• Ton TVL (DefiLlama)
• Telegram Official Statement (Telegram)

The post Notcoin and Hamster Kombat Down After Telegram Founder's Arrest appeared first on The Tech Report.