Toncoin Price Plummets 10% After UAE Authorities Reject Golden Visa Claims

UAE Denies Toncoin Golden Visa Program

Toncoin experienced a sharp 10% price decline following an official denial from UAE authorities regarding claims that staking the cryptocurrency could qualify investors for a Golden Visa. The correction came after a brief surge when the Ton Foundation's official website launched a promotional campaign offering UAE Golden Visa eligibility to users who stake at least $100,000 worth of TON.

Three Major UAE Regulatory Bodies Issue Joint Statement

On July 6, three UAE regulatory authorities released a joint statement refuting Toncoin's Golden Visa claims. The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA) collectively denied any connection between Toncoin staking and Golden Visa eligibility.

ICP Clarifies Golden Visa Requirements

The ICP stated that Golden Visas are awarded exclusively based on specific guidelines focusing on areas such as real estate investment, science, technology, entrepreneurship, and humanitarian work. Cryptocurrency investors do not qualify under these established criteria.

SCA and VARA Confirm Separate Digital Asset Rules

Both the SCA and VARA emphasized that digital assets operate under different regulatory frameworks that do not relate to the Golden Visa system. VARA specifically noted that TON lacks proper licensing or regulation from their office, making any connection to the visa program unauthorized.

Binance Founder Questions Ton Foundation's Legitimacy

Binance founder Changpeng Zhao expressed skepticism about the legitimacy of the Ton Foundation's offer. CZ highlighted conflicting information in their announcement and questioned the absence of an official government press release supporting the initiative.

Market Reaction and Investor Sentiment

The Toncoin price fell 10% immediately after the UAE's official denial, erasing earlier gains from a 12% increase that occurred when the Ton Foundation initially announced the Golden Visa campaign. The news had initially led to increased speculative buying in the cryptocurrency market.

Investor Confidence Turns Negative

Investor confidence quickly deteriorated when key UAE regulatory bodies denied any link to Toncoin's Golden Visa program. Many investors began questioning the Ton Foundation's claims, leading to concerns about misleading promotions and resulting in a rush to sell holdings.

Need for Transparency in Crypto Announcements

The market correction highlighted the critical need for transparency and accountability in cryptocurrency announcements. Investors felt misled by promises of residency benefits that lacked government support, increasing distrust in the project.

Key Takeaways

The Toncoin price drop serves as a reminder of the importance of verifying claims made by cryptocurrency projects, especially those involving government programs or regulatory benefits. UAE authorities urged the public to rely on official government websites for accurate information and cautioned against trusting unverified online offers.

The incident demonstrates how quickly market sentiment can shift when regulatory authorities contradict promotional claims, emphasizing the need for crypto projects to maintain accurate and authorized communications with investors.