Dubaicoin was launched a few days ago on a fake website and its value surged more than 1,000% before the token was officially exposed as fraudulent.
Dubaicoin allegedly debuted recently and initially posted spectacular gains. The token was presented as a project from a company calling itself ArabianChain Technology, with claims that it represented the first public, decentralized, consensus-driven blockchain in the MENA region.
On May 27, Dubai’s Cyber Security Centre was alerted to the token, which was promoted as Dubai’s official cryptocurrency, and issued a public warning on Twitter:
The real ArabianChain Technology later distanced itself from the token, stating that the link cited in the press release — dub-pay.com/en/ — was fraudulent and not associated with the company.
According to the Khaleej Times, ArabianChain has launched a full investigation into how its branding and credentials were misused. Major cryptocurrency tracking platforms have removed the fake token from their listings to prevent further investor exposure to the token’s artificially inflated price and potential losses.
The fake press release claimed that “DubaiCoin will soon be usable to pay for a range of goods and services in-store and online, with the clear intent that the currency be used in place of traditional bank-backed currencies. The circulation of the new digital currency will be controlled by the city itself and by licensed brokers.”
The token’s rapid price surge ran counter to the performance of major cryptocurrencies such as Bitcoin and Ethereum, which both saw roughly 10% losses over the prior week. Crypto.com data indicates nearly $600,000 worth of DubaiCoins were traded before authorities intervened:
Clicking the link referenced in the fraudulent press release now leads to a blocked website.