TON Network Halts Block Production Amidst DOGS Memecoin Frenzy
The Open Network (TON) has encountered significant disruptions, resulting in a halt of block production and the suspension of transactions on certain crypto exchanges.
TL;DR
- The TON network experienced a significant outage due to the DOGS memecoin frenzy.
- Block production has been halted, leading to transaction delays and disruptions.
- TON Foundation is working to restore consensus and network stability.
- The price of TON has declined following the arrest of Telegram CEO Pavel Durov.
- The future outlook for TON remains uncertain, with potential downside risks.
TON Network Outage and Transaction Delays
The TON network experienced an ongoing outage, which was attributed to a surge in market hype surrounding the newly launched memecoin, DOGS. As a result, the network was unable to produce new blocks, leading to transaction delays and instability.
The last confirmed transactions on TON were processed in block 45341899, and no new blocks have been generated since then. This disruption caused major crypto exchange ByBit to temporarily suspend deposits and withdrawals to TON until the network is restored to normal operations.
TON Foundation Blames Network Overload
TON Foundation member Justin explained that the outage was primarily caused by a network overload due to the overwhelming number of DOGS transactions. Additionally, the validators on the TON network became overloaded, leading to a loss of consensus.
To address the issue and restore consensus, validators will be required to restart at 4:00 UTC. However, there is no specific timeline for when the network will be fully operational again.
DOGS Memecoin Takes Center Stage
The DOGS memecoin, launched on TON on August 27th, has experienced meteoric growth. Within the first ten hours of its launch, DOGS witnessed a staggering $1.7 billion in trading volume and reached a peak market capitalization of $891 million.
Despite the initial surge, the price of DOGS has since corrected, currently trading around $0.0013. The memecoin’s popularity can be attributed to its association with the TON Society’s rebranding in support of Telegram creator Pavel Durov, who was recently arrested in France.
TON Society’s Open Letter and Support for Durov
The TON Society launched an “Open Letter Mini App” on Telegram, urging the French authorities to release Durov from detention and protect the freedom of expression and right to private life for Telegram users. The letter has garnered significant support, reaching over 1.48 million signatures.
TON/USD Technical Analysis and Outlook
The arrest of Pavel Durov has had a negative impact on the price of TON. Since Durov’s detention, TON has experienced a 24% decline and is currently trading at $5.22.
The technical outlook for TON appears unfavorable following Durov’s arrest. Toncoin has broken below its 200-day moving average and is forming a head and shoulders pattern on the chart. If this pattern plays out, the price could see further declines, potentially reaching $2.
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