DubaiCoin that has recently taken the entire cryptocurrency world by surprise by claiming to be an official token from Dubai has turned out to be a scam. The coin was made by Arabchain technology and surged 1000% in a day after release. A day before yesterday, I even covered the news regarding the same. But now Dubai has officially confirmed that they do not have any official cryptocurrency, and if someone is claiming that, then it’s a scam.
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
What made everyone think that DubaiCoin is official?
The company behind DubaiCoin claimed that it would be used to make official purchases in the city for various goods and services. It also said that the total coins in the market would be regulated by the city of Dubai. These statements had many convinced that DubaiCoin was official. This even led to a 10x increase in the price of the currency in just 24 hours. Even I was pretty excited as this was quite a big thing for the industry.
From now on, it is important for us to keep an eye on official sources for such news. Even if any coin is claiming to be the replacement of any fiat unless the government supports that statement, we can’t be sure about it. Since there are reports that India, the US, and even China are working on their digital currencies, the same kind of scams could be seen in these countries too.
The official news!
The government has warned everyone that DubaiCoin is just an elaborate scam that is aimed at stealing public information. After the news, the currency vanished from many major exchanges and also from CoinMarketCap, where it was previously spotted. The unofficial news was too good to be true, but we all still believed in the same because we wanted to. As the markets are in a frenzy, many old and new crypto projects are turning out to be scams or are just doing it out of the blue. Even in 2017, when the markets collapsed, many lost money because their coins turned out to be scams.
What are your thoughts on DubaiCoin turning out to be a big scam? And have you been a victim of this? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.