DubaiCoin was launched days ago on a fake website and its value rose more than 1000% before being officially reported
DubaiCoin allegedly debuted only a few days ago and posted spectacular gains. Promoted by a group claiming to be ArabianChain Technology, the token presented itself as the first public, decentralized consensus blockchain in the MENA region. On May 27, the Dubai Cyber Security Center became aware of the coin — which billed itself as Dubai’s official cryptocurrency — and issued a public warning on Twitter.
The real ArabianChain Technology later distanced itself from the token, warning that the link referenced in the fraudulent press release (dub-pay.com/es/) is fake.
According to the Khaleej Times, ArabianChain has opened a full investigation into how its credentials were used fraudulently. Major cryptocurrency tracking platforms have already removed the bogus token from their listings to prevent additional investors from being attracted by the dramatic price movement and potentially losing funds.
The fake press release claimed that “DubaiCoin will soon be usable to pay for a range of goods and services both in stores and online,” and suggested the token was intended to replace traditional bank-backed currencies. It also asserted that the circulation of the new digital currency would be controlled by the city itself and by authorized intermediaries.
The sharp rise in DubaiCoin’s value ran counter to the recent performance of larger virtual currencies such as BitCoin and Ethereum, which have each fallen roughly 10% over the past week. Crypto.com reports that nearly $600,000 worth of DubaiCoin traded before authorities intervened.
Following the warning, the link provided in the press release now leads to a blocked webpage.