Binance founder Changpeng Zhao (CZ) criticized The Open Network (TON) for a misleading marketing campaign regarding UAE Golden Visas, emphasizing the risks to crypto industry trust.
The Misleading Campaign
The announcement by The Open Network suggested users could stake TON tokens for UAE Golden Visas. The UAE government quickly clarified that these promotional claims were unverified and only certain categories, such as real estate or scientific achievements, qualify for such visas.
Market Reaction
CZ emphasized the lack of verified governmental backing, calling the campaign misleading. He initially expressed interest if the program was legitimate, but regulatory denials prompted a swift withdrawal of support.
> "The campaign is misleading and excessive due to lack of regulatory and government confirmation." — Changpeng Zhao (CZ), Founder, Binance
Regulatory Implications
The implications of this false marketing include potential setbacks in regulatory relations and increased scrutiny on future crypto-based residency claims. This episode served as a warning about verifying authenticity in crypto-marketing. Historically, similar crypto-based initiatives without clear government endorsement have led to market volatility, emphasizing that regulatory cooperation remains crucial for the credibility and integration of such innovations.
The recent incident involving TON and Zhao's comments highlight the importance of accurate information in the crypto space and the risks faced by projects lacking transparency.
