Image Credit:coinmarketcap.com , twitter.com/arabianchain
While cryptocurrencies like Bitcoin and Ethereum remain volatile, the price of Dubaicoin(DBIX) increased a whopping 1000% on May 27, within 24 hours of getting launched. The cryptocurrency launched by UAE company Arabianchain technology was trading only on some selected exchanges. However, a false claim made by the company could be the reason behind this surge.
According to crypto.com, Dubaicoin, which was launched for an initial price of $0.17 suddenly jumped to $1.13 on May 27. The company behind the cryptocurrency – Arabianchain technology -claims that Dubaicoin is the first blockchain cryptocurrency in the Gulf region. Some media reports reveal that the company also claimed that Dubaicoin is Dubai city’s official cryptocurrency and that the “Circulation of the new digital currency will be controlled by both the city itself and authorized brokers,” This claim seems to have attracted many users, resulting in a massive jump of over 1000% in the price of Dubaicoin.
However, in a statement on May 28, the media office of the Dubai government clarified that “Dubai Coin cryptocurrency was never approved by any official authority.” It further added that the website promoting the coin is part of an elaborate phishing campaign that is designed to steal personal information from its visitors.
Next, the Dubai Electronic Security Centre said that the website which promotes Dubaicoin is unlicensed and that the site wants to steal personal information of users like passwords, phone number and email Id.
Dubai Coin cryptocurrency was never approved by any official authority.
The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors. pic.twitter.com/Q0HBXfqaDO— Dubai Media Office (@DXBMediaOffice) May 27, 2021
In response, the crypto developer Arabianchain technology warned users through a tweet that the concerned website is a scam. It also added that the company never made claims of being an official cryptocurrency.
We haven't made such an announcement, please be cautious. Also this website : https://t.co/lgdUlAwxWJ is fake and scam .please be careful.
لم يصدر من قبلنا اي اعلان ، الرجاء الحذر من اي أخبار مزورة او احتيالية . الموقع التالي هو موقع احتيالي : https://t.co/lgdUlAwxWJ
— ArabianChain (@arabianchain) May 26, 2021
Following the controversy, DubaiCoin has now disappeared from all major trading platforms. Meanwhile, prices of other cryptocurrencies like Bitcoin and Ethereum have remained volatile for the past few weeks as China is now cracking down on virtual coins.