Telegram's cryptocurrency, Toncoin (TON), experiences a significant surge in price following a significant partnership with the United Arab Emirates for a Golden Visa scheme.

Telegram's cryptocurrency, Toncoin (TON), experiences a significant surge in price following a significant partnership with the United Arab Emirates for a Golden Visa scheme.

In a surprising turn of events, the native token of The Open Network, Toncoin (TON), experienced a significant price jump on Saturday following a major partnership announcement with the United Arab Emirates (UAE). However, the partnership has since been met with controversy and denial from UAE authorities.

Initially, Max Crown, CEO of the Toncoin Foundation, announced a partnership that promised TON holders who stake $100,000 worth of TON tokens for three years, along with a one-time fee of $35,000, could obtain a 10-year UAE Golden Visa. This was promoted as a pioneering real-world application for crypto holders.

However, key UAE regulatory bodies, including the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA), issued a joint statement denying any official partnership or sponsorship with the TON Foundation regarding Golden Visa offers. The UAE's Golden Visa framework currently does not include digital asset investors, and TON is not licensed or regulated within the UAE.

In response, Toncoin's team issued a clarification stating that the visa program was part of an independent partnership with a licensed blockchain service provider, was still in early stages, and had no formal connection with the UAE government. They also emphasized that submitting an application would not guarantee visa approval, which depends solely on UAE government bodies.

The initial announcement caused a surge in Toncoin's price, rising over 10% from about $2.78 to $2.98 within hours. After the UAE officials' denial, Toncoin’s price lost momentum and declined by more than 6%, erasing weekend gains and trading lower near $2.83. The market sentiment shifted bearish amid caution urged by UAE authorities and a drop in derivatives market interest.

Despite the controversy surrounding the UAE partnership, the size of Telegram and the growing interest in self-sovereign digital identity may contribute to TON's potential success. Telegram's CEO, Pavel Durov, issued a crucial warning to the global community regarding the growing interest in self-sovereign digital identity linked to real-world benefits.

It's important to note that the funds for the golden visa investment are never handed over to a third party, and the TON-based golden visa process is managed through a decentralized smart contract on TON's native chain. This allows applicants to keep full custody of their crypto while earning a 3-4% annual yield during the lockup period.

The price surge reversed a multi-day downtrend and pushed TON towards key resistance zones. As the situation with the UAE partnership unfolds, investors and crypto enthusiasts will be closely watching the developments to gauge the potential impact on Toncoin's price and future prospects.

Meanwhile, Binance's CZ is considering offering UAE golden visas for BNB holders, which could potentially add another layer of competition and interest in the crypto-based immigration solutions space.

1. Max Crown, CEO of the Toncoin Foundation, announced a partnership offering TON token holders who stake a significant amount of tokens a potential 10-year UAE Golden Visa.
2. The UAE's key regulatory bodies have denied any official partnership with the TON Foundation regarding Golden Visa offers, stating that TON is not licensed or regulated within the UAE.
3. Toncoin's team clarified that the visa program was part of an independent partnership with a licensed blockchain service provider and emphasized no formal connection with the UAE government.
4. The price surge of Toncoin after the initial announcement was followed by a decline after UAE officials' denial, indicating a bearish market sentiment among investors and crypto enthusiasts.
5. The funds for the golden visa investment using TON are managed through a decentralized smart contract on TON's native chain, allowing applicants to keep their crypto while earning a yield during the lockup period.
6. Binance's CZ is considering offering UAE golden visas for BNB holders, potentially adding competition and interest in the crypto-based immigration solutions space.

Read also: