Toncoin Suffers a Collapse Following UAE's Withdrawal of Golden Visa Opportunities
In the dynamic world of cryptocurrency, recent events have seen Toncoin (TON), the native token of The Open Network, experiencing a significant price drop following a denial by the United Arab Emirates (UAE) government regarding claims linking Toncoin staking to eligibility for the UAE's Golden Visa.
On July 7, 2023, Toncoin experienced a 6% decline from its 24-hour high of $3.05 to around $2.82. This price drop was triggered by the UAE government denying claims that staking or holding Toncoin could qualify individuals for a Golden Visa. Key UAE authorities clarified that Golden Visa frameworks do not currently recognize digital asset investments as a qualification criterion, and TON is not licensed or regulated in Dubai or by the UAE's Virtual Asset Regulatory Authority (VARA).
Prior to this, TON Foundation had announced a new program allowing applicants to secure a 10-year UAE Golden Visa by staking $100,000 worth of Toncoin for 36 months and paying a $35,000 processing fee. The program, operated through TON’s UAE-based partners, was promoted as a more affordable and streamlined residency route compared to traditional methods requiring investments of over $540,000 in illiquid assets.
However, the UAE's Emirates News Agency issued a joint statement debunking the claims, emphasizing that visas require real estate or business investment—not cryptocurrency staking. TON later clarified that the program was part of an independent partnership with a licensed blockchain service provider and admitted that the initiative was in early development with no formal endorsement or guarantee from UAE government bodies.
The sequence of announcement and denial influenced Toncoin's market price, initially causing a 10% price surge followed by a sharp decline exceeding 6% after the UAE’s official refutation. This incident highlights the need for caution regarding residency claims linked to cryptocurrency investments in the UAE.
In the current market, TON is compressing between a horizontal support at approximately $2.80 and a gradually declining resistance line. If TON fails to hold the $2.80 support zone, bears could gain control, pushing prices towards the $2.38 level. A likely bounce zone in the short term is at the 1.618 Fib level ($2.38).
The Balance of Power (BoP) indicator is currently in negative territory at -0.13, indicating strong selling pressure behind recent price moves. The MACD histogram's widening divergence indicates growing downward momentum, with the MACD histogram leaning bearish and suggesting growing downside momentum.
It is essential to remember that the TON's Golden Visa staking program, while announced by TON Foundation, does not have formal recognition from the UAE government at this time. Investors are advised to exercise caution and consider this news as informational only, not as financial or investment advice.
[1] TON Foundation Official Announcement, July 6, 2025. [2] UAE Government Official Denial, July 7, 2023. [3] TON's Clarification Regarding the Golden Visa Program, July 8, 2023. [4] UAE Emirates News Agency Joint Statement, July 9, 2023.
- Despite the TON Foundation's previous announcement about a Golden Visa staking program involving Toncoin, the UAE government has clarified that digital asset investments do not currently qualify individuals for a Golden Visa.
- The finance and industry sectors, particularly that of cryptocurrency, highlight the importance of clarity and transparency in partnerships, as an announcement and subsequent denial can significantly impact a token's market price, as demonstrated by Toncoin's recent price fluctuations.
