Kyrrex Blog

Telegram CEO Pavel Durov's world was shaken last Saturday evening with a shocking arrest in Paris, sparking significant buzz across decentralized blockchain predictions platform Polymarket.

Odds Against Durov's Release

Polymarket bettors initially placed Durov's chances of release at 50% when the bet was created on Sunday. However, as details emerged about the French authorities' determination to keep the tech titan in pre-trial detention, the odds plummeted to just 25%. This startling development reflects growing skepticism about his release before August 31.

Legal Storm Surrounding Durov

Durov's arrest marks a pivotal moment in a preliminary police investigation by France’s National Anti-Fraud Office. The Russian-born multi-national, who holds citizenship in France, the UAE, Russia, and Saint Kitts and Nevis, is under scrutiny for allegedly allowing a spectrum of criminal activities on his platform, Telegram, due to insufficient moderation and a lack of cooperation with law enforcement.

Accusations and Flight Risks

French law permits holding a suspect for 96 hours before a judge must decide on further detainment. However, Durov's billionaire status, valued at $15.5 billion, dual nationality, and access to a private jet categorize him as a potential flight risk, complicating the judicial proceedings.

“Pavel Durov will end up in pretrial detention, that’s for sure,” an unnamed investigator commented, highlighting the severity of the situation.

Telegram's Staunch Defense

Telegram has vehemently defended Durov, dismissing the allegations as "absurd" and affirming their compliance with EU laws, including the Digital Services Act.

"It is absurd to claim that a platform or its owner are responsible for abuse of that platform," Telegram stated in response to the arrest.

As the legal drama unfolds, all eyes remain on the next steps the French judicial system will take. Will Durov manage to secure his release, or will he remain in custody as the investigation deepens?

Editor: Yana Davydiuk

The tech world was shaken this week when news broke that Telegram CEO Pavel Durov had been detained by French authorities. The incident occurred on August 24 at an airport outside Paris, yet the details remain murky. As of now, there has been no official confirmation that Durov has been formally arrested or charged with any crimes.

French Authorities to Issue Statement

French officials have announced they will provide further clarification on the situation come Monday, August 26. In the meantime, the Russian embassy has demanded access to Durov and transparency about the circumstances of his detention. However, according to sources, French authorities have yet to cooperate on this matter.

Community Reaction and Market Impact

In the wake of Durov's detention, social media has become a hotbed of activity. From messages of support to the hashtag #FreeDurov, the community is rallying behind the tech mogul. Even Elon Musk has voiced his support, sharing an earlier interview with Durov and amplifying the #FreeDurov movement.

The market, however, has not reacted as positively. The price of TON, Telegram's cryptocurrency, has dipped by over 12% since the news broke. Despite this, the incident appears to have strengthened Durov's support base within the cryptocurrency and Telegram communities.

Official Statement from Telegram

Telegram itself has also weighed in on the matter. On August 25, the company issued a statement reaffirming its commitment to EU laws, including the Digital Services Act, and emphasizing that its moderation is within industry standards.

"Telegram abides by EU laws, including the Digital Services Act — its moderation is within industry standards and constantly improving. Telegram's CEO Pavel Durov has nothing to hide and travels frequently in Europe. It is absurd to claim that a platform or its owner are responsible for abuse of that platform. Almost a billion users globally use Telegram as means of communication and as a source of vital information. We’re awaiting a prompt resolution of this situation. Telegram is with you all."

What’s Next?

The upcoming statement from French authorities will be crucial in shedding light on Durov’s detention and the potential legal ramifications. Until then, the tech community remains on edge, and the #FreeDurov movement continues to gain momentum.

Editor: Emiliia Morozova

Bitcoin's price is on a breathtaking ride, capturing the attention of traders and analysts alike. As Bitcoin (BTC) hovers around the $64,000 mark, experts caution that recent gains might be fleeting.

BTC Price Struggles to Maintain Gains

After a swift climb at the end of last week's Wall Street session, Bitcoin experienced a relatively uneventful weekend. The rally was fueled by promising signals from the U.S. Federal Reserve regarding potential policy easing in September, including the first interest rate cuts since 2019. Despite a slow initial reaction, BTC surged to a two-week high of nearly $65,000 before settling lower.

"The levels with more liquidations are $63.5k (1h50EMA) & $62.2k," noted popular trader CrypNuevo, predicting a potential drop to support levels that could liquidate late longs.

The Potential of a "Bart Simpson" Pattern

CrypNuevo and other traders foresee BTC/USD forming a classic "Bart Simpson" pattern, characterized by a price spike followed by a sharp drop. Such a move could see Bitcoin retreat to the 50-period exponential moving averages (EMAs) on 1-hour and 4-hour chart timeframes.

"It would make sense because they'd be filling the wick, stopping short positions and trapping some breakout traders," CrypNuevo explained.

Crypto Chase, another prominent trader, suggested that a breakout above $65,700 would indicate bullish momentum. Conversely, a drop back to $60,000 would require keen observation on how the price action responds.

"Watch how PA responds if 60K-61K is retested (to determine whether to long for another test of daily resistance 65K or short towards 57.5K~)," Crypto Chase advised.

Historical Context and Future Prospects

Despite the cautious outlook, some analysts remain optimistic. Trader and analyst Rekt Capital highlighted that Bitcoin is nearing a crucial technical event he refers to as the "post-halving reaccumulation range." This range has historically seen Bitcoin resynchronize with post-halving price tendencies, suggesting a potential for stabilization and future gains.

"The importance of this technical event cannot be understated," Rekt Capital emphasized.

As the week unfolds, all eyes will be on Bitcoin's performance, with traders keen to see if BTC can defy the odds and maintain its recent gains.

Editor: Emiliia Morozova

The latest surge in Bitcoin has captured the attention of the financial world. Following a pivotal announcement by US Federal Reserve Chair Jerome Powell during his annual Jackson Hole symposium, Bitcoin's value soared, signaling a potential new era for the cryptocurrency market. Powell hinted that interest rates might fall, sparking immediate reactions from investors.

Surge Triggered by Fed's Interest Rate Signals

"Bitcoin demand in the US spiked today as the Fed signaled the cycle of lower interest rates will begin," commented CryptoQuant’s Head of Research Julio Moreno on Aug. 24.

This bullish sentiment is not only driving Bitcoin's value up but also creating potential opportunities for select altcoins to shine. Investors are keen to see if these cryptocurrencies can sustain their momentum and break through significant resistance levels.

Bitcoin's Bullish Comeback

Bitcoin recently vaulted above its 50-day simple moving average, indicating a reduction in bearish pressure. With the 20-day exponential moving average turning upward and the relative strength index entering the positive zone, the bulls are making a strong comeback. Minor resistance lies at $65,660, but a break above this could see Bitcoin reaching $70,000. However, the bears are not out of the picture yet and could attempt to pull the price back below the moving averages.

Thriving Altcoins: Polygon, Sui, Render, and Bittensor

Other cryptocurrencies like Polygon (MATIC), Sui (SUI), Render (RENDER), and Bittensor (TAO) are also garnering attention. Polygon's moving averages are on the verge of a bullish crossover, indicating a potential rise to $0.75 if the support holds. Sui is showing aggressive buying at lower levels, with a possible climb to $1.20 if bullish sentiment persists. Render surged above its moving averages and could rally to $8, while Bittensor might complete a double bottom pattern if it surpasses the $361 mark, potentially reaching as high as $500.

Future Prospects and Market Sentiment

The current bullish trend in Bitcoin and select altcoins could improve market sentiment further. If Bitcoin maintains its recent gains, it could propel these altcoins above their respective resistance levels, sparking a broader market rally. Investors are advised to stay cautious and monitor critical support levels, as any break below these could shift the advantage back to the bears.

The evolving landscape of cryptocurrencies continues to offer exciting opportunities and challenges. Stay tuned as we closely follow these developments and their implications on the crypto market.

Editor: Vitalina Patskan

The unexpected arrest of Telegram co-founder and CEO Pavel Durov has sent shockwaves through the crypto community. Developers of popular Telegram-based games, such as Hamster Kombat and Notcoin, are rallying in his support, creating content and messages to protest the French authorities' actions.

A United Front in the Gaming Community

On the evening of Durov's arrest, which took place in France after his private jet landed from Azerbaijan, developers of prominent Telegram crypto games quickly mobilized. An animated sticker featuring the Telegram app icon began circulating on community channels, accompanied by passionate messages condemning the arrest.

"Charging for technology is the dumbest thing ever," the official Notcoin community channel declared, asserting that "Privacy is not a crime."

Game Developers Take Action

Hamster Kombat, a game boasting over 300 million players, introduced a new card labeled "#FREEDUROV" on Sunday. The card echoed the sentiment seen across the crypto community, with the message "Privacy is not a crime." The official TON account also voiced its support, tweeting,

"As a community committed to freedom of speech and decentralization, we stand firmly by Pavel during this challenging time."

Wider Repercussions and Prominent Voices

The arrest has garnered attention beyond the gaming and crypto sectors. Notable personalities such as Elon Musk and whistleblower Edward Snowden have publicly criticized the move. Snowden's tweet emphasized the broader implications, stating,

"The arrest of Durov is an assault on the basic human rights of speech and association."

The Bigger Picture

Durov's detention, reportedly due to Telegram's alleged lack of moderation over illegal activities on the platform, has ignited a debate on privacy and technology. Supporters argue that penalizing technology for its misuse by others is misguided. As the situation unfolds, the crypto community continues to rally around Durov, reinforcing the principles of freedom and decentralization that he champions.

Editor: Yana Davydiuk

The cryptocurrency world is buzzing as Cardano (ADA) experiences an impressive 18% surge in its price, reaching the $0.38 mark. This meteoric rise in value comes at a time when a significant piece of news has left investors on edge.

Charles Hoskinson Announces Hard Fork Delay

"It appears that Binance and a few others need more time to get their affairs in order, so the rocket will wait on the launch pad until the weather clears up. The next window for the Chang hard fork is September 1st," Hoskinson stated.

On Friday, Charles Hoskinson, the founder of Cardano, announced that the long-awaited Chang hard fork has been postponed once again. The delay was deemed necessary due to some major centralized exchanges, including Binance, not being ready for the update.

Investor Skepticism and Market Reactions

According to data from IntoTheBlock, ADA holders reacted skeptically to the news. The visualization of order books shows that the total sell orders surpass the buy orders by a staggering $80 million. Should investors decide to offload such a large volume of tokens, the ADA price could temporarily dip.

Market Trends and MVRV Ratio

Interestingly, the recent price hike has also impacted the Market Value to Realized Value (MVRV) ratio. On August 20th, ADA's 30-day MVRV ratio stood at a negative 0.32%, indicating that the average holder was at a loss. However, it has now risen to 10.36%, suggesting that if holders were to sell at the current price, they would turn a profit.

Price Forecast and Potential Risks

The daily chart reveals that ADA broke through critical support at $0.31 and a descending trend line, indicating strong bullish momentum. Trading above the 20 (blue) and 50 (yellow) exponential moving averages (EMAs), ADA remains in a bullish phase. Should this trend continue, ADA could surpass the psychological resistance at $0.40 and aim for $0.42. However, traders should remain cautious of a potential "death cross" forming, which could signal a bearish trend and potentially push the price down to $0.37.

Editor: Emiliia Morozova

Toncoin (TON) faced a dramatic plunge in value over the past 24 hours following the unexpected arrest of Telegram CEO Pavel Durov by French authorities. Prices dropped by a staggering 25%, reaching $5.24 on Aug. 25, just a day after Durov's detention sent shockwaves through the community.

The Arrest that Shook the Market

Durov is facing serious charges related to data privacy and cryptocurrency regulation violations. Telegram has played a pivotal role in integrating and promoting Toncoin within its platform, making Durov a central figure in the cryptocurrency's narrative and future. Consequently, his arrest triggered a wave of panic selling among traders.

"When news of legal troubles breaks, especially involving key figures like Durov, it triggers a wave of panic selling as traders rush to protect their investments from potential fallout."

Historical Parallel with Binance

Interestingly, this situation mirrors the performance of Binance Coin (BNB) before the sentencing of former Binance CEO Changpeng Zhao (CZ) in the United States. BNB experienced a 13.50% decline ahead of CZ's sentencing on April 30, only to recover by nearly 35% once the legal dust settled. This historical precedent suggests a possible rebound for Toncoin as well.

Technical Indicators Suggest a Rebound

From a technical standpoint, Toncoin trades within a well-defined ascending channel range. The TON/USDT pair has bounced from this channel's lower trendline, which has provided strong support since its formation earlier this year. Additionally, TON’s daily relative strength index (RSI) reading was 37.54 on Aug. 25, nearing its oversold threshold of 30, which typically leads to consolidation or a rebound.

"Rising open interest (OI) and funding rates signal growing market confidence."

Market Confidence on the Rise

The futures market data for Toncoin indicates increasing confidence among traders. Following Durov’s arrest, TON’s open interest rose to $303.62 million, its highest since July. Meanwhile, funding rates for every eight hours soared to a three-month high of 0.0101%. These trends suggest that traders are increasingly willing to bet on a price increase, potentially driving TON toward the $8.50 target and beyond.

In conclusion, while Durov's arrest initially caused a panic sell-off, the strong technical indicators and historical parallels hint at a significant rebound for Toncoin in the coming weeks.

Editor: Emiliia Morozova

In an unexpected turn of events, Thai authorities have cracked down on an illegal Bitcoin mining operation in Ratchaburi, a town situated just west of Bangkok. The raid, which took place on Aug. 23, comes after numerous complaints from residents about persistent power outages that have plagued the area for over a month.

The Raid Unveils the Culprit

Following an investigation prompted by continuous power failures, the Provincial Electricity Authority (PEA) and local police identified a single house as the source of the electrical drain. Upon inspection, the house was found to be a base for Bitcoin (BTC) mining. Jamnong Chanwong, the chief district security officer, revealed that the property's electricity consumption was suspiciously high, while payments for that electricity were unusually low. This discrepancy suggested that the operators were stealing power to fuel their cryptocurrency endeavors.

The Aftermath and Ongoing Investigation

Interestingly, no arrests were made during the raid, as the operators had likely fled upon realizing law enforcement was onto them. The investigation remains ongoing, and authorities are working to locate the individuals responsible for the illicit operation. The mining equipment had been installed by a company that had rented the house for approximately four months, coinciding with the period of significant power outages.

A Regional Epidemic

Illegal Bitcoin mining has become a growing concern in Southeast Asia. Operators exploit the region's relatively low electricity costs while evading the hefty energy bills associated with the energy-intensive process of mining cryptocurrencies. For instance, in Malaysia, illegal mining operations have stolen an estimated $723 million worth of electricity between 2018 and 2023.

Thailand's Regulatory Challenges

While Thailand has generally adopted a more crypto-friendly regulatory stance, this incident underscores the complexities involved in regulating such a rapidly evolving and technically demanding industry. The Thai government has implemented various regulations to protect investors and maintain financial stability, yet the rise in illegal mining operations indicates a need for stricter enforcement and monitoring. In January, the Thai Securities and Exchange Commission relaxed restrictions on retail investors, allowing them to purchase digital tokens backed by real estate or infrastructure projects.

The Road Ahead

The recent raid in Ratchaburi highlights both the potential and the pitfalls of the burgeoning cryptocurrency industry in Thailand. As authorities continue their investigation, the focus will likely shift to developing more robust measures to prevent electricity theft and illegal mining activities. This incident serves as a stark reminder of the challenges and responsibilities that come with the digital age.

Editor: Yana Davydiuk