Changpeng Zhao, the founder of Binance, criticized The Open Network (TON) for misleading marketing related to the UAE's cryptocurrency-based Golden Visa program. UAE regulators have denied any official confirmation.
CZ's public criticism of TON's Golden Visa campaign highlights potential misunderstandings in the cryptocurrency space, affecting market confidence and regulatory perception.
Misleading Campaign
The Open Network's announcement stated that users can stake TON tokens to obtain a UAE Golden Visa, exciting the cryptocurrency community. The UAE government quickly clarified that the promotional claims are unverified, as only approved categories such as real estate or scientific achievements qualify for this type of visa.
"This campaign is misleading and overstated due to the lack of government and regulatory confirmation." — Changpeng Zhao (CZ), Founder, Binance
Missed Opportunities and Market Reaction
In response, CZ emphasized the lack of verified government support, calling the campaign misleading. He initially expressed concern about the legality of the program, but the regulators' denial prompted a swift withdrawal of support. The following is CZ's public statement:
Initial news increased trading volume and the price of TON tokens, but confidence waned after the regulators' response. Skepticism grew regarding the feasibility of such cryptocurrency-based residency programs.
Regulatory Implications
The consequences of this misleading marketing include potential hurdles in regulatory relations and increased scrutiny of future cryptocurrency-based residency requirements. This incident serves as a warning regarding the verification of authenticity in cryptocurrency marketing.
Historically, similar cryptocurrency-based initiatives without clear government endorsement have led to market volatility, emphasizing that regulatory cooperation remains critical for the credibility and integration of such innovations.