DubaiCoin jumps 1000% amid false claims by makers

A cryptocurrency named DubaiCoin jumped 1000% on exchanges within 24 hours of being declared the official digital currency for the city of Dubai. The company behind DubaiCoin, Arabchain Technologies, said that their technology was the first public blockchain in the Arabic world, meaning that anyone would be able to mine DubaiCoins.

In a press release, the makers claimed that DubaiCoin would soon be cleared for the purchase of goods and services within the UAE, suggesting that it was set to be an alternative to the Dirham. The company further added that the value of the DubaiCoin or DBIX would not be affected by mining activities as it would be regulated by the city council of Dubai and other authorized brokers.

Such seemingly official claims piqued the interest of many who bought DBIX across several exchanges. There was little to doubt about the coin as China and India are also in the preparatory stages of rolling out their own digital currencies. A crypto.com report observed that DubaiCoin was trading at $1.13 per coin after the announcement, up from its original price of $0.17 on May 27.

However, in a dramatic turn of events, the Government of Dubai put out a tweet from its Twitter handle “Dubai Media Office” saying that the city of Dubai had not approved DubaiCon for any official use whatsoever. The tweet also warned people that the website promoting the coin was part of an elaborate phishing campaign whose intention is to steal the personal information of visitors. As of now, the coin cannot be found on CoinMarketCap or any of the major exchanges.

The two-day saga of DubaiCoin serves as a reminder for all crypto enthusiasts to thoroughly research any currency before making a purchase. Even without scams or false claims, the crypto market is notoriously volatile. While the technology behind bitcoins has been hailed as promising by many, several government agencies, as well as investors, remain wary of investing in bitcoins.

It has been two weeks since the 2020-21 bull run ended and the crypto market crashed, wiping out over $800 billion. The crash happened amid growing environmental concerns surrounding bitcoins and a series of government crackdowns on cryptocurrencies. Most notably, China issued a directive to all national banks and financial institutions, asking them to cease all dealings with crypto companies.

Cryptocurrency prices rebounded somewhat on Friday after a weak showing on Thursday. The currency hovered around $38,000 at 4:00 AM GMT on May 28. While this is an improvement, it is a far cry from the all-time high of nearly $65,000 that 1 BTC was valued at during the start of this month. Following China’s orders, Bitcoin has been down by almost 30% this month. Other notable coins such as Ethereum, and its competitors Cardano, Solana, and Monero, are also down significantly from their earlier highs.

References

1. Dubai’s own cryptocurrency DubaiCoin jumps 1000% in 24 hours https://www.businesstoday.in/current/economy-politics/dubais-own-cryptocurrency-dubaicoin-jumps-1000-percent-in-24-hours/story/440203.html
2. Dubaicoin surges 1,000% on fake claims of being city’s official cryptocurrency https://economictimes.indiatimes.com/markets/cryptocurrency/dubaicoin-surges-1000-on-fake-claims-of-being-citys-official-cryptocurrency/articleshow/83039262.cms

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