The Open Network’s (TON) native token Toncoin dropped 6% after United Arab Emirates (UAE) authorities denied claims that staking TON could qualify investors for a UAE golden visa.

The denial came shortly after TON’s initial announcement — claiming applicants who stake $100,000 worth of TON for three years and pay a $35,000 processing fee could obtain a 10-year UAE golden visa — sent the price of Toncoin 10% higher.

This story is an excerpt from the Unchained Daily newsletter.

A joint statement from the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA) clarified that golden visas are not issued to digital asset holders and that digital currency investments are governed by separate regulations unrelated to golden visa eligibility.

VARA also confirmed that TON is neither licensed nor regulated by UAE authorities for visa or residency purposes.

TON was originally developed by Telegram, but spun off and continued by independent developer communities. Toncoin is currently trading 65% below its all-time high of $8.24 one year ago.