A public blockchain-based cryptocurrency that’s backed by a city or nation is highly unlikely. Public blockchains enable the public to mine currency and keep the blockchain ledgers
NEW DELHI: A newly formed cryptocurrency in the Center East jumped in worth on Thursday, after falsely claiming to be the official cryptocurrency for the city of Dubai. The token called the Dubaicoin, apparently jumped in worth by over 1000% in under 24 hours, according to reports.
The company behind the token, called Arabchain Technology, claims to be the first public blockchain in the Arab world. In a press launch, it mentioned Dubaicoin would quickly be used to buy items and services, which steered that it was meant to be an alternative to the Dirham, the official currency within the United Arab Emirates (UAE). The company added that its worth can be regulated by the city of Dubai, claims that seemed to persuade many.
“Circulation of the brand new digital currency can be managed by each town itself and licensed brokers,” the company mentioned within the press launch.
However, late final night time, the government of Dubai refuted all these claims. In a tweet from the official handle, the Dubai government said the currency was by no means approved. “Dubai Coin cryptocurrency was by no means approved by any official authority. The website selling the coin is an elaborate phishing campaign that’s designed to steal personal data from its guests,” the tweet mentioned.
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
Interestingly, some reports claimed that Dubaicoin’s value had risen, citing Coinmarketcap. Nevertheless, at the time of writing, the coin seemed to have disappeared from the website’s listings. It was also unavailable for trading on any main crypto exchanges.
A public blockchain-based cryptocurrency that’s backed by a city or nation is very unlikely. Public blockchains allow the public to mine currency and keep the blockchain ledgers. However, most official digital currencies being thought of around the globe proper now are expected to be on private blockchains in order that central banks can keep shut control of their circulation, value, creation, and more.