Gram Drops 3% Amid Russia's 'Terrorist' Label for Telegram Founder Pavel Durov

Russia's decision to label Telegram founder Pavel Durov a 'terrorist' has sent shockwaves through the cryptocurrency market, causing Gram (previously known as Toncoin) to drop by approximately 3%.

The move was seen as a direct hit on the Telegram ecosystem and its associated token, given Durov's close ties with the project. The designation came after Durov refused demands for mass surveillance and censorship on Telegram, highlighting the growing tensions between Russia and the platform.

A recent Benzinga report notes that prior government actions against Durov have already impacted the token, including a sharp drop when he was arrested by French authorities in August 2024 for alleged moderation failures. The report suggests that traders are quicker to sell when new legal headlines hit due to this precedent of pronounced drawdowns.

The combination of fresh Russian 'terrorist' designation news and recirculated enforcement stories may have contributed to the selling pressure, with some holders potentially de-risking in response. This vulnerability was exacerbated by a prior positive catalyst, Durov's announcement of the largest rollout of non-custodial crypto wallets for over 1 billion Telegram users, which had previously lifted GRAM by about 7%.