TON Coin Plunges 6% After UAE Authorities Debunk Golden Visa Claims

The cryptocurrency market often reacts sharply to news, and recent events surrounding TON Coin provide a clear example. The native asset of The Open Network experienced a notable dip following a crucial denial from authorities in the United Arab Emirates regarding a potential pathway to the coveted UAE golden visa through staking the digital asset.

Why Did TON Coin Price Drop?

Reports had circulated, notably initiated by The Open Network itself, suggesting that individuals staking $100,000 worth of Toncoin for three years could become eligible for the UAE’s 10-year golden visa program. This claim initially fueled positive sentiment, causing Toncoin’s price to climb by 10% to $3.03 on Sunday.

However, this upward momentum was quickly reversed. The Emirates News Agency released a joint statement from key UAE regulatory bodies, including the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority. This statement directly refuted the claim, clarifying that golden visas are not issued based on holding digital assets and that digital currency investments fall under separate regulations unrelated to golden visa eligibility.

Following this official denial, the crypto price of TON Coin retracted significantly. It dropped by 6% from its 24-hour peak, trading around $2.84 at the time of the report. This swift market reaction highlights the sensitivity of cryptocurrency valuations to regulatory news and official statements.

Understanding The Open Network’s Claim and the UAE’s Response

The initial claim from The Open Network outlined a specific scenario: staking $100,000 in TON for three years, plus a $35,000 processing fee, for golden visa eligibility. This was a bold assertion, potentially positioning TON as a unique investment vehicle with a tangible residency benefit in a popular global hub.

Adding to the buzz, Telegram CEO Pavel Durov reportedly reposted an announcement about the claim on X, although he made no direct official comment. This further amplified the visibility of The Open Network’s statement.

However, the UAE authorities were unequivocal in their response. Their joint statement, reported by the Emirates News Agency, explicitly stated:

• Golden visas are not issued to digital asset holders.
• Digital currency investments are governed by specific regulations.
• Digital currency investments are unrelated to golden visa eligibility.

They also urged investors to seek information from official, credible sources to avoid misinformation. This firm stance directly contradicted The Open Network’s publicized claim, leading to the negative market reaction for TON Coin.

What is the UAE Golden Visa?

Introduced in 2019, the UAE golden visa is a long-term residency program designed to attract talented individuals and investors. It offers residency durations of five to 10 years without requiring a national sponsor, providing a stable environment for professionals, entrepreneurs, and investors.

Eligibility criteria are strict and typically include:

• Individuals with specialized skills (doctors, scientists, researchers).
• Public investors with investments of 2 million United Arab Emirates dirham (approximately $544,000) or more.
• Entrepreneurs with registered, tech-based startups recognized by UAE authorities.

The official criteria clearly focus on traditional investment routes or specific professional qualifications, making The Open Network’s claim about digital asset staking a significant departure from established pathways.

Insights and What This Means for TON Coin and Crypto Investors

The incident serves as a reminder of the importance of verifying claims, especially those involving potential regulatory benefits like residency. For investors interested in Toncoin or other digital assets, relying solely on project announcements without official confirmation from relevant authorities can be risky.

The swift price correction demonstrates that while positive news can boost a crypto price, unverified or refuted claims can lead to equally rapid downturns. This event underscores the volatility inherent in the cryptocurrency market and the impact of regulatory clarity (or lack thereof).

While this specific claim has been denied, it doesn’t inherently affect the underlying technology or development of The Open Network. However, it does raise questions about the project’s communication strategy and the accuracy of information disseminated.

Conclusion: Navigating Crypto Claims

The dip in TON Coin‘s price after the UAE denied the golden visa claim highlights a critical lesson for the crypto community: always verify information from official sources. While the prospect of gaining residency through crypto staking was appealing, the reality is that such claims must align with government regulations. This event underscores the need for caution and due diligence when evaluating investment opportunities tied to bold, unverified claims, especially those involving regulatory benefits like the UAE golden visa.