Toncoin price drops 10% after UAE denies ties to Golden Visa offer, calling the program unofficial and not backed by any government body.
After UAE officials explicitly denied rumors that staking the cryptocurrency may earn investors a Golden Visa, toncoin price fell by 10%.
The correction comes after a brief spike in the cost of Toncoin earlier when the project’s official website started a promotion giving anyone who staked at least $100,000 worth of TON the opportunity to receive a UAE Golden Visa.
UAE Authorities Deny Toncoin’s Participation In Golden Visa Scheme
The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA) jointly stated on July 6, refuting claims that staking Toncoins could result in eligibility for the UAE’s Golden Visa program.
According to the ICP, Golden Visas are only granted by regulations highlighting entrepreneurship, science, technology, real estate, and humanitarian activity. Investors in cryptocurrencies are not eligible.
Additionally, according to the SCA and VARA, digital assets are subject to separate regulations unrelated to the Golden Visa system.
Additionally, VARA pointed out that TON has no office-issued license or regulations, and any association with the visa program is not permissible.
Notably, Changpeng Zhao, the creator of Binance, questioned the validity of the Ton Foundation’s offer.
CZ noted contradicting facts in their announcement, as Coingape reported. He also asked why the administration had not issued an official press release endorsing the idea.
Authorities warned against relying on unconfirmed online offerings and advised the public to visit official government websites for reliable information.
Due to this criticism, investors have begun to question the campaign’s credibility, which has caused the price of Toncoin to drop.
Toncoin Price Drops By 10%
Following the UAE’s official denial of involvement with its Golden Visa promotion, Toncoin price dropped by 10%.
When the Ton Foundation announced that investing $100,000 in TON may result in a Golden Visa for investors, prior profits from a 12% increase were wiped out by this decline.
More speculative purchases were made in the cryptocurrency market due to this news.
When critical regulatory agencies in the United Arab Emirates rejected any connection to Toncoin’s Golden Visa, investor trust swiftly declined.
Many investors began to question the Ton Foundation’s assertions.
They rushed to sell their interests because they were concerned that the advertisements would mislead consumers without official sanction.
Their mistrust grew due to investors feeling duped by claims of residency benefits that lacked official backing.
A significant market slump resulted, demonstrating the apparent need for accountability and transparency in crypto announcements.
