David Edwards
Toncoin, the native cryptocurrency of The Open Network, dropped 6% from its recent high after United Arab Emirates regulators publicly denied claims that staking TON could qualify investors for a UAE golden visa. The correction came shortly after the token had surged 10% to $3.03 on speculative optimism.
The rally was triggered by a claim from The Open Network suggesting that staking $100,000 worth of Toncoin for three years and paying a one-time $35,000 processing fee could make applicants eligible for the UAE’s 10-year golden visa program.
However, the Emirates News Agency later issued 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, dismissing the claim. The regulators stated unequivocally that golden visas are not issued based on digital asset holdings.
The agencies clarified that cryptocurrency investments are subject to separate regulatory frameworks and have no bearing on residency eligibility. Investors were urged to consult official channels to avoid falling victim to misinformation or fraud.
Although Telegram CEO Pavel Durov amplified the initial claim by reposting the announcement from a crypto influencer on X, he has made no official statement on the matter. The absence of regulatory approval and the swift response from authorities contributed to the retracement of Toncoin’s price to approximately $2.84.
This event underscores the volatility of crypto markets in response to regulatory narratives, especially when tied to incentives like residency or immigration status. The episode also highlights the importance of clear communication from both blockchain projects and regulatory bodies in safeguarding market integrity.
