Toncoin (TON) fell 6% after UAE authorities denied claims that staking the cryptocurrency could qualify investors for the country’s coveted golden visa. The drop followed initial excitement over an announcement by The Open Network, which was later dismissed by UAE regulators.
On Sunday, The Open Network stated that users staking $100,000 worth of TON for more than three years, along with paying a $35,000 processing fee, would become eligible for a 10-year UAE golden visa. The announcement briefly sent TON’s price surging 10% to $3.03.
However, after the Emirates News Agency published statements from the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority, the token dropped to $2.84 — down 6% from its 24-hour peak.
Doubts raised over legitimacy of the offer
The Open Network’s offer included a three-year $100,000 stake in TON and a one-time $35,000 fee, claiming this met the UAE’s criteria for the golden visa program. Telegram CEO Pavel Durov shared the announcement from influencer Ash Crypto on X (formerly Twitter), which some took as tacit endorsement.
However, Binance founder Changpeng Zhao (CZ) expressed skepticism, noting that the claim lacked an official UAE government announcement. CZ also pointed out that similar golden visa applications through authorized agents typically cost much less — around $1,000 — suggesting the program may have been designed to collect high fees from users.
“I am a supporter of Durov, especially given his current situation. But I like to ‘trust but verify’,” CZ wrote on X, adding that the details provided about eligibility seemed vague.
Other users also voiced doubts, recalling previous incidents where partnerships promoted by Durov were later denied by other parties, including Elon Musk.
UAE authorities reaffirm official criteria
On Monday, UAE authorities clarified that crypto investments are not among the approved criteria for golden visa eligibility. They urged the public to rely only on official government sources to avoid misinformation and potential scams.
Since its launch in 2019, the UAE golden visa program has targeted individuals with real estate investments of at least AED 2 million, entrepreneurs, skilled professionals, scientists, students, and others who meet specific income or contribution thresholds.
The authorities reiterated that while digital assets are regulated in the UAE, ownership of cryptocurrencies does not qualify an individual for a golden visa under current rules.
This episode underscores both the intense demand for UAE residency and the scrutiny surrounding claims linking cryptocurrency investments to official government programs.