Toncoin Drops 5% After UAE Golden Visa Rumors Debunked

The Open Network (TON) Foundation, a nonprofit organization dedicated to the long-term success of the Toncoin (TON) ecosystem, has clarified that there is no official deal with the government of the United Arab Emirates (UAE). The TON Foundation has highlighted that the previous rumors that a Golden Visa program for the Toncoin holders is not true. The rumors had triggered bullish sentiment on Toncoin in the past 48 hours. However, the TON Foundation indicated that such a collaboration is in the early stages of development.

The TON Foundation stated, “We fully support the joint statement issued by the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA), which confirms that no digital residency or investment visa initiatives have been formally approved or launched in partnership with the UAE government.”

Following the announcement that the rumors of the UAE government supporting the TON ecosystem are false, the Toncoin price dropped over 5 percent in the past 24 hours to trade at about $2.77 on Monday, July 7 during the mid-North American session. The large-cap altcoin, with a fully diluted valuation of about $14.2 billion, has been forming a macro and mid-term bullish sentiment.

In the daily timeframe, TON price has established a support level around $2.7, which has resulted in double-bottom coupled with bullish divergence of the Relative Strength Index (RSI). For the bullish momentum to be confirmed, TON price must consistently close above the falling logarithmic resistance level established year to date. In case the support range between $2.5 and $2.7 is violated in the coming weeks, TON price could likely drop to the next liquidity target around $2.3.

The TON Foundation had previously announced a program that offered an alternative to the UAE's traditional Golden Visa, which typically requires investments of at least $540,000 in real estate. The proposed program by TON would have required staking $100,000 worth of Toncoin and a $35,000 fee, making it a more accessible option for potential investors. However, the UAE authorities have dismissed these claims, stating that such a program does not exist and that Toncoin is not licensed or regulated in Dubai.

The initial announcement of the potential Golden Visa program had sparked a surge in Toncoin's price, with the cryptocurrency rising from $2.75 to a peak of $3.06. This price increase was driven by the excitement and anticipation within the crypto community, as well as the potential for a more accessible pathway to residency in the UAE. However, the subsequent denial by the UAE authorities has led to a correction in Toncoin's price, highlighting the volatility and speculative nature of the cryptocurrency market.

The denial of the Golden Visa program by the UAE authorities serves as a reminder of the importance of verifying information and the potential risks associated with investing in cryptocurrencies. The cryptocurrency market is known for its volatility and the potential for misinformation to spread rapidly, making it crucial for investors to exercise caution and conduct thorough research before making investment decisions. The TON Foundation's clarification and the subsequent drop in Toncoin's price underscore the need for transparency and accurate information in the cryptocurrency market.