On July 8, Toncoin [TON] surged over 12% in just two hours, making headlines across major media, largely due to reports that the UAE would allegedly introduce a new residency pathway.

The Open Network claims that individuals only need to invest $100,000 in Toncoin within three years and pay a $35,000 fee to obtain a 10-year UAE golden visa.

This announcement initially sparked high trading volumes and investor enthusiasm.

However, this excitement did not last long, as Toncoin's price quickly fell back by 6%.

The UAE rejected TON's golden visa application.

After the UAE authorities quickly clarified, cryptocurrency prices fell back as authorities dismissed claims about staking in exchange for visas, thereby dampening the token's momentum.

Main authorities in the UAE, including the Federal Authority for Identity and Citizenship (ICP), Securities and Commodities Authority (SCA), and Dubai Virtual Assets Regulatory Authority (VARA), firmly denied any link between staking Toncoin and the country's golden visa program.

The ICP clarified in an official statement that golden visas are granted based on clearly defined and government-approved categories, which do not include cryptocurrency investors.

According to current guidelines, eligible awardees are typically real estate investors, entrepreneurs, exceptional talents, scientists, outstanding students, humanitarian leaders, and frontline workers.

This clarification effectively refuted the notion that staking Toncoin and other digital assets could become a pathway to UAE residency.

The founder of Binance also questioned its legitimacy.

Further fueling skepticism is the fact that Binance founder Changpeng Zhao (CZ) also publicly questioned the credibility of the Open Network's golden visa plan.

Changpeng Zhao highlighted inconsistencies, pointing out that a standard UAE golden visa application processed through authorized agencies typically costs around $1,000, far less than the $35,000 processing fee associated with staking TON.

According to his sources, staking activities in the UAE are subject to regulatory oversight, and any such initiatives need to obtain appropriate permissions from agencies such as VARA, SCA, or ADGM.

CZ added,

"Currently, there is no government official website announcing the benefits of the golden visa update for the TON plan. If this is true, then this project is fantastic."

As expected, CZ's concerns highlight the need for clear, verified information before promoting high-risk token utilities.

What else?

Another reason for skepticism about the TON residency plan is the significant differences in investment requirements compared to traditional UAE golden visa pathways.

Generally, applicants must invest at least $540,000 in non-liquid assets such as real estate or long-term business investments.

In contrast, TON offers the same 10-year residency rights but requires only $100,000 worth of staked tokens, which is an unusually low threshold that deviates significantly from established norms.

This significant discrepancy has raised concerns among observers, who question the legitimacy of the plan and emphasize the urgent need for regulatory clarity in crypto-driven initiatives.

Bobby Ong, co-founder of CoinGecko, commented on this:

"The entry fee is 5 times lower than equivalent real estate/FD investments, which will certainly attract significant investors, drawing their attention to TON as an option."

As of the time of publication, the trading price of TON stabilized after the news broke but then fell by 2.23%, reporting at $2.81 (according to CoinMarketCap data).