What happened?
The Open Network claims to collaborate with the UAE to launch a program that allows obtaining a 10-year golden visa by staking only $100,000 worth of TON tokens, which is cheaper and faster than traditional methods. This news led to a surge in the price of TON by over 10%, with the market optimistic, believing it aligns with the UAE's vision of becoming a crypto hub.
TON's claims were quickly denied by a joint statement from the UAE's Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority. The officials clearly stated that the issuance of golden visas has strict standards and does not include digital currency investors. This clarification caused the price of TON to drop about 6% from its peak.
Former Binance CEO Zhao Changpeng (CZ) also questioned the authenticity of this program, noting that the UAE officials had not released any related announcements. This incident highlights the gap between cryptocurrency projects' promotion and regulatory reality, and it serves as a reminder for investors to verify information from official sources when facing similar "major positive news" to avoid losses due to misinformation.
Can you live in Dubai with 100,000 TON tokens?
Recently, the native token of The Open Network (TON) surged over 10% due to the project's claim of collaboration with the United Arab Emirates (UAE) to launch an innovative "golden visa" program. The program claims that participants can obtain long-term residency by staking cryptocurrencies, without the need for traditional real estate or income thresholds.
However, shortly after this news was released, it triggered a denial from UAE regulators, leading to a drop in the price of the TON token.
According to the details officially announced by The Open Network, applicants can obtain a 10-year UAE golden visa by staking $100,000 worth of TON tokens and paying a one-time processing fee of $35,000.
💡UAE's Golden Visa: A long-term residency visa launched by the UAE government in 2019 to attract high-skilled talent. It allows foreign nationals to live, work, and study in the UAE, with visa durations ranging from five to ten years. To qualify, applicants must meet strict criteria, such as possessing special skills (e.g., doctors, scientists, or researchers).
Investors with public investments of 2 million UAE Dirhams (about $544,000) or more can also obtain a golden visa. Additionally, entrepreneurs who have registered tech startups recognized by UAE authorities are also eligible to apply.
These staked tokens will be locked for three years through non-custodial, verifiable smart contracts on the TON blockchain. During the lock-up period, users retain full ownership of their assets and can earn an annualized return of about 3% to 4%.
TON emphasized that this new scheme has significant advantages over traditional golden visa programs that require fixed deposits or real estate investments of over $500,000. After all, the staking-based model offers users a more flexible and liquid alternative, aligning with the UAE's increasing emphasis on digital asset adoption.
Furthermore, compared to the standard golden visa processing time of up to six months, the TON program claims to complete processing in seven weeks, and applicants retain the liquidity of their staked assets, avoiding the inherent illiquidity risks of traditional investment visas.
Upon the release of this news, the TON price surged by over 10%, reaching a peak of $3.03, and subsequently rose nearly 8% within 24 hours, trading at around $2.96.
Jayden from Genome Protocol pointed out: "This opens the door for digital-first investors who prefer cryptocurrencies over foreign hard assets." The UAE ranks third globally in the 2024 Henley Cryptocurrency Adoption Index, with its relaxed regulatory environment and business-friendly policies continuing to attract cryptocurrency companies, making it a preferred destination for innovation and investment in the crypto space.
Clarifications and denials from UAE regulators
Shortly after TON announced this news, it sparked discussions. However, former Binance CEO Zhao Changpeng (CZ) quickly raised questions about the legality of TON's new pathway to UAE residency, pointing out that there were no official announcements from UAE government sources.
CZ posted on X platform questioning: "Is this true? If it is, that would be great. But the information I have received is contradictory." He added that no official government website has updated information about "staking TON to obtain a golden visa," nor did it mention which government entity approved the program.
Not long after, the situation reversed. UAE regulators directly denied the claim that residency in the UAE could be obtained through staking TON.
The Emirates News Agency issued a statement jointly published by the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority, clearly denying that golden visas would be issued to digital asset holders. They clarified that digital currency investments are subject to specific regulations and are unrelated to golden visa eligibility.
The official statement from the UAE emphasized: "Authorities further confirmed that investments in digital currencies are subject to specific regulations and are unrelated to golden visa eligibility. It urges investors to obtain information from trusted official sources to avoid misinformation or scams."
After the UAE's official denial, the price of TON fell 6% from its 24-hour high, trading at around $2.84.
Despite the announcement of the TON golden visa program causing price fluctuations and controversy, the UAE has indeed become a rapidly growing center for cryptocurrency adoption and blockchain companies, thanks to its friendly regulatory environment, government support, and infrastructure welcoming DeFi and Web3 projects.
References: cointelegraph, cointelegraph, beincrypto
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