Toncoin fell 6% after UAE authorities debunked the network’s claims on its golden visa program

Toncoin (TON) slipped 6% after United Arab Emirates authorities dismissed assertions that staking the token qualifies one for a golden visa. 

On Sunday, The Open Network first announced that users staking $100,000 worth of TON for over three years could make it to the UAE’s golden visa program. After this, their native cryptocurrency surged 10%, reaching $3.03. 

Nonetheless, after the UAE debunked the claims, the token dropped to $2.84, a 6% fall from its 24-hour high.

Some believed TON only wanted to charge users $35000 to forward their application, CZ says

According to The Open Network, a three-year $100,000 TON stake and a single $35,000 processing fee would make applicants eligible for a 10-year UAE golden visa. Telegram CEO Pavel Durov reposted the TON announcement from crypto influencer Ash Crypto on X on Sunday. While he didn’t comment directly, his post made some believe the claims were credible.

Meanwhile, Binance founder and former CEO, CZ, raised questions on the credibility of the claims. He noted that part of the online community suspects the platform’s real intention was only to collect a $35,000 fee to forward the application to an agent, who typically charges just $1,000.

He added that he felt the TON announcement didn’t specify enough, and the details they gave on the eligibility of a golden visa are pretty vague. He also claimed he had not verified the news with an official source yet, though some stated that the RAK (Ras Al Khaimah Emirate) DAO had approved.

On Durov’s repost on the announcement, CZ commented: “I am a supporter of Durov, especially given his current situation. But I like to ‘trust but verify’. I’d expect something like this to have a government partnership and announcement. It might still be true, just saying I haven’t been able to verify.”

However, another X user voiced skepticism toward Durov, recalling that the last time Durov mentioned a partnership with X, Elon Musk publicly denied it. He added that he just hopes people don’t end up losing their money this time.

UAE authorities ask investors to rely on official sources for information

On Monday, the Emirates News Agency stated that the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority denied issuing golden visas to individuals solely based on digital asset ownership.

They asserted that crypto investments have their own set of regulations, which are not in any way connected to golden visa eligibility. 

They also asked investors to seek information from official sources to prevent misinformation or fraud.

The golden visa was first introduced in the UAE in 2019 to draw in more skilled individuals.

So far, the UAE government has offered golden visas to people with real estate investments worth at least AED 2 million, those with business investments or tax contributions of at least AED 250,000 per year, and entrepreneurs with approved ventures. Skilled professionals earning at least AED 30,000 per month, scientists, creatives, retirees, and students are also eligible for the visa.

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage