Toncoin (TON), the native token of The Open Network, is currently facing a major credibility setback following the denial of the Golden Visa deal by UAE authorities. Over the weekend, the TON Foundation claimed that it had entered into partnership with UAE allowing Toncoin stakers to gain a 10-year Golden Visa in the country. This news ignited a 12% pump in the price of TON.
However, the rally did not last long as UAE authorities issued a formal statement against the claims. This sparked chills amongst Toncoin investors who sold-off making the price crash. Additionally, what initially appeared to be a major breakthrough for the crypto project has raised serious concerns about promotional ethics in the crypto sector.
Toncoin’s UAE Golden Visa Buzz Short-Lived
On July 6, the TON Foundation announced a new staking program that would allow Toncoin stakers to gain a 10-year Golden Visa in UAE. According to the announcement shared on the official TON website, stakers would only be required to stake $100,000 in TON for three years, along with paying a $35,000 fee, to secure a Golden Visa for themselves and their families.
https://twitter.com/crownmax/status/1941793879692337660
This announcement arrived at a time when Toncoin is already gaining traction due to deeper integrations with Telegram, including wallet features and mini-apps. The visa program also led to a spur in investor enthusiasm triggering a 12% pump in the value of TON. The token rose to $3.03 riding on the wave of investors looking to take advantage of the buzz.
However, this trend did not last long as UAE government agencies released a joint statement refuting the claims associated with the TON-linked visa. The joint statement was issued by the Federal Authority for Identity, Citizenship, Customs & Port Security (ICP), the Securities and Commodities Authority (SCA), and Dubai’s Virtual Assets Regulatory Authority (VARA). These agencies clarified that Toncoin is not a recognized or licensed financial product in the UAE. Also, staking the token does not qualify anyone for the Golden Visa.
“The ICP clarified that golden visas are issued according to clear and officially approved frameworks and criteria, which do not include digital currency investors…It also clarified that the company TON is neither licensed nor regulated by VARA,” the statement noted.
The clarification led to a sharp price correction. As of this writing, Toncoin (TON) is currently at $2.79 with a 5.27% dip on the day, per CoinMarketCap.
Damage to TON’s Reputation and Key Takeaways
Although the decline in prices may seem minor, Toncoin might eventually face profound reputation damage. The project’s close relations with Telegram and its increasing presence in Web3 mini apps and wallet services has made it a serious layer-1 competitor. However, this misstep with UAE authorities could compromise investor confidence.
The incident also highlights the general dangers of blending financial products with legal or immigration benefits. To traders, developers, and anyone interested in the unique opportunities, the Toncoin visa saga serves as a sobering reminder that aggressive promises can lead to temporary profits.
As shared by Binance founder Changpeng Zhao (CZ), investors must verify information before jumping to invest on hype. “You never know what to believe these days. DYOR!” he wrote. Moving forward, the crypto community will continue to track Toncoin’s price movement amid the visa saga.
