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Highlights
- Three major UAE regulatory bodies publicly refuted Toncoin’s claim.
- Following the denial, Toncoin’s price fell sharply by 10%, erasing earlier gains.
- Binance founder Changpeng Zhao questioned the credibility of the Ton Foundation’s offer.
Toncoin price saw a sharp 10% decline after UAE authorities publicly refuted claims that staking the cryptocurrency could qualify investors for a Golden Visa. The correction follows a brief surge in the Toncoin price earlier when the project’s official website launched a promotional campaign offering a UAE Golden Visa to users who stake at least $100,000 worth of TON.
UAE Authorities Deny Toncoin’s Involvement In Golden Visa Scheme
In a joint statement released on July 6, three UAE regulatory bodies, the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA), denied reports that Toncoin staking could lead to eligibility for the country’s Golden Visa program.
The ICP stated that Golden Visas are awarded only based on specific guidelines that focus on areas like real estate, science, technology, entrepreneurship, and humanitarian work. Cryptocurrency investors do not qualify.
Furthermore, both the SCA and VARA stated that digital assets are under different rules that do not relate to the Golden Visa system. VARA also noted that TON does not have a license or regulation from its office, and any connection to the visa program is unauthorized.
Notably, Binance founder Changpeng Zhao expressed doubts about the legitimacy of the offer from the Ton Foundation. As Coingape reported, CZ pointed out conflicting information in their announcement. He also questioned why there was no official press release from the government in support of the initiative.
Authorities urged the public to use official government websites for accurate information and cautioned against relying on unverified online offers. This backlash has led investors to doubt the campaign’s legitimacy and contributed to the decline in the Toncoin price.
Toncoin Price Sees 10% Drop
The Toncoin price fell by 10% after the UAE officially denied any connection to its Golden Visa campaign. This drop erased earlier gains from a 12% increase that happened when the Ton Foundation stated that investing $100,000 in TON could lead to a Golden Visa for investors. This news had led to more speculative buying in the crypto market.
Investor confidence quickly turned negative when key regulatory bodies in the UAE denied any link to Toncoin’s Golden Visa. Many investors started to doubt the Ton Foundation’s claims. Without official approval, they worried that the promotions could mislead people, which resulted in a rush to sell their holdings.
Investors felt misled by promises of residency benefits that lacked government support, increasing their distrust. This led to a sharp market correction, showing a clear need for transparency and accountability in crypto announcements.
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