Altcoin

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

Published

3 weeks ago

August 28, 2024

Toncoin, the native crypto of the TON Blockchain, faced price turbulence following a major disruption in the network’s block production process. The disruption, which occurred due to an “abnormal load” on the network. The recent outage raises concerns of Toncoin selloff as the crypto already faces uncertainty amid Telegram CEO Pavel Durov’s arrest.

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.

“TON Blockchain is currently experiencing a disruption in block production. The issue is occurring due to the abnormal load currently on TON. Several validators are unable to clean the database of old transactions, which has led to losing the consensus,” the team wrote.

They further reassured users, stating, “Rest assured your transactions will be made, no cryptocurrency assets will be lost due to the issue.” However, the Toncoin price extended into the “red” territory shortly after.

To resolve the problem, TON Core issued a call to validators to restart at 4 a.m. UTC, hoping that this would allow the network to reestablish consensus. Fortunately, the effort paid off, as the TON Blockchain team later confirmed that “TON is now producing blocks normally! We are back online.”

Earlier, the TON network faced a stress test as DOGS meme coin’s airdrops claim went live. Amid the claims, DOGS registered a speed of 150,000 times per second. Moreover, the subsequent Binance listing also boosted activity.

Toncoin Price Dips

Despite the resolution, the incident had a noticeable impact on the Toncoin price. At the time of writing, TON price dropped 1.33% to $5.33. The crypto hit a low of $5.15 during the disruption before rebounding slightly. The high for the day was recorded at $5.63 prior to the server disruption.

Adding to the pressure on Toncoin, it saw $1.43 million in long liquidations over the past 24 hours, according to data from Coinglass. This liquidation activity is likely to weigh on the price further. Moreover, Toncoin price has already been under pressure following the arrest of Telegram CEO Pavel Durov in France on August 25.

The uncertainty surrounding Durov’s situation has contributed to a 20% decline in TON price in the 7-day frame. Moreover, the brief rebound on optimism around his potential release was also short-lived.