Toncoin Drops 6% After UAE Denies Staking Residency Claims

The native cryptocurrency of The Open Network, Toncoin (TON), experienced a significant dip of 6% from its 24-hour high following a denial from United Arab Emirates (UAE) authorities regarding claims that staking Toncoin could lead to UAE residency. Initially, Toncoin surged by 10% to $3.03 on Sunday after The Open Network announced that applicants staking $100,000 worth of Toncoin for three years would be eligible for the UAE’s golden visa program. However, this claim was swiftly refuted by the Emirates News Agency, which released a joint statement from several regulators clarifying that digital currency investments are not linked to golden visa eligibility.

The UAE authorities, including the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority, emphasized that golden visas are not issued to digital asset holders. They urged investors to rely on credible, official sources to avoid misinformation or fraud. This clarification led to a partial retracement of Toncoin’s value, which is now trading at $2.84, a 6% decrease from its recent high.

The Open Network had initially claimed that applicants staking $100,000 worth of TON for three years and paying a one-time $35,000 processing fee would be eligible for a 10-year golden visa. This announcement was further amplified by Telegram CEO Pavel Durov, who reposted the news on X from crypto influencer Ash Crypto, though he has not made any official comment on the matter.

The UAE’s golden visa program, introduced in 2019, aims to attract skilled individuals to the region by offering long-term residency visas. These visas enable foreign nationals to live, work, and study in the UAE without needing a national sponsor, with durations ranging from five to ten years. Eligibility criteria for the golden visa include having special skills such as being a doctor, scientist, or researcher, or having public investments worth 2 million United Arab Emirates dirham ($544,000) or more. Entrepreneurs with registered tech-based startups recognized by the UAE authorities can also qualify for the golden visa.

The denial by UAE authorities has had a direct impact on the value of Toncoin, highlighting the sensitivity of cryptocurrency markets to regulatory clarifications and official statements. Investors and stakeholders in the cryptocurrency space are advised to stay informed through official channels to avoid potential misinformation and fraud.