The cryptocurrency market recently witnessed a sharp downturn in Toncoin (TON) values following the United Arab Emirates (UAE) authorities’ unequivocal refutation of claims associating TON token staking with eligibility for the nation’s coveted Golden Visa program. This incident underscores the critical need for verifying information through official channels in the volatile digital asset landscape, as speculative announcements can trigger significant market shifts based on unconfirmed partnerships.
- Toncoin (TON) experienced a significant price drop after UAE authorities denied claims linking TON staking to Golden Visa eligibility.
- TON’s initial assertion was that staking $100,000 in TON for three years, plus a $35,000 fee, could qualify individuals for a 10-year UAE Golden Visa.
- This claim initially boosted TON’s value by 10% to $3.03, but the subsequent official denial led to a swift 6% decline to $2.84.
- UAE governmental bodies, including the Federal Authority for Identity, Citizenship, Customs and Port Security, explicitly stated that Golden Visas are not issued based on digital asset ownership.
- Binance founder CZ voiced skepticism, questioning the $35,000 fee and highlighting the lack of official government partnership for such a significant claim.
Earlier, The Open Network (TON) had asserted that individuals staking $100,000 worth of TON for a minimum of three years, along with a $35,000 processing fee, could qualify for a 10-year UAE Golden Visa. This announcement initially propelled the token’s value upwards by 10%, briefly reaching $3.03. However, the subsequent denial by key UAE governmental bodies led to a swift 6% decline in TON’s price, bringing it down to $2.84 from its 24-hour peak, highlighting the market’s sensitivity to regulatory clarity and official endorsements.
Official UAE Stance on Golden Visas and Digital Assets
On Monday, the Emirates News Agency reported a joint statement from the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority. These entities explicitly denied issuing Golden Visas based solely on digital asset ownership. They clarified that regulations governing cryptocurrency investments operate independently and have no bearing on Golden Visa eligibility criteria. The authorities also urged investors to consult official sources for accurate information to mitigate risks of misinformation and potential fraud.
The UAE introduced its Golden Visa program in 2019, primarily to attract skilled professionals, investors, and talented individuals who can contribute to the nation’s economic growth. Eligibility for this long-term residency visa is well-defined and typically includes categories such as:
- Real estate investments of at least AED 2 million.
- Business investments or tax contributions totaling at least AED 250,000 annually.
- Entrepreneurs with approved ventures.
- Skilled professionals earning a minimum of AED 30,000 per month.
- Distinguished scientists, creatives, retirees, and exceptional students.
This official framework starkly contrasts with the claims made regarding TON staking, underscoring the discrepancy that led to the market correction.
Industry Scrutiny and Skepticism
The claims surrounding TON’s Golden Visa potential drew immediate scrutiny from prominent figures within the cryptocurrency community. Binance founder and former CEO, CZ, publicly voiced his skepticism. He pointed to concerns among the online community that the alleged $35,000 processing fee might merely be for forwarding applications to an agent, who typically charges a significantly lower fee, around $1,000. CZ emphasized that the TON announcement lacked sufficient specificity and contained vague details regarding Golden Visa eligibility. While acknowledging his support for Telegram CEO Pavel Durov, who had reposted the TON announcement on X, CZ stressed the importance of the “trust but verify” principle, noting that he would expect such a significant claim to be accompanied by a formal government partnership announcement. This incident reiterates the importance of due diligence and official verification in the digital asset space, particularly when unverified claims can significantly influence investor sentiment and market stability.
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.