Toncoin Important Signal: TON raises $400 million to establish a financial company, UAE still denies "Golden Visa" service plan.

Toncoin (TON) follows the market fall, currently reporting at 3.10 USD in the Asian early session today (25). According to a report by Bloomberg citing informed sources, the TON Foundation and investment firm Kingsway Capital Partners are seeking to raise at least 400 million USD to establish a cryptocurrency financial company that holds Toncoin.

(Source: CoinMarketCap)

The company plans to adopt a PIPE (Private Investment in Public Equity) structure, whereby a public company sells shares to a group of investors. One source said that Kingsway may be one of the investors.

Manuel Stotz, who runs Kingsway, is also the chairman of the TON Foundation, an organization dedicated to expanding the adoption of the TON blockchain, especially in the U.S. market.

Despite the widespread rumors, neither Stotz, Kingsway Capital, nor the TON Foundation has made any official statements.

TON is the native token of the Telegram Open Network blockchain, currently ranked 27th in the crypto assets market with a market cap of nearly 8 billion dollars. Although TON was created by one of the co-founders of Telegram, it is now independent of the Telegram messaging platform.

As of now, although most major altcoins have seen significant increases since the market bottomed out in April, the price of TON has fallen by 23%, trading at around $3.17.

However, TON still rose by 9% in July - a notable development, as it is claimed that the TON Foundation provided a "golden visa" program in the United Arab Emirates (UAE) in exchange for holding the token.

The UAE government denied this information, and the TON Foundation subsequently stated that this is merely a pilot project in collaboration with licensed partners, and there is no formal agreement with the government.

According to informed sources, Cohen & Co. will act as the financial advisor for the proposed financial company. Cohen & Co. previously assisted Dynamix in acquiring a SPAC for $1.5 billion to create a financial company focused on Ethereum.

In addition, Cantor Fitzgerald (a company that has recently supported many well-known crypto assets funds) has also expressed interest in establishing a publicly traded company to hold Toncoin.

According to reports, as investors hope to replicate the success of the Strategy company (formerly MicroStrategy) led by Michael Saylor in holding Bitcoin, this trend is increasingly growing. Over the past five years, MicroStrategy's stock price has soared by more than 3,400%.