‘DubaiCoin’ Leaps 1000% Within 24 Hours after False Claims

Cryptocurrency is still a mystery to many people. Eventually, it will be bringing the hype to mainstream with every passing day. Do you know that presently there exist more than 4000 different cryptocurrencies across the globe as of January 2021? 

Cryptocurrency acquisition is progressing by leaps and bounds. Especially in the past decade as everything is prone towards digitization. Humans are growing, so is technology. Without a doubt, mobile phones were internet 2.0, because they literally changed everything. Cryptocurrencies are internet 3.0 as it’s a cause of the death of paper money. According to researchers and analysts, the market size of cryptocurrency is expected to grow from USD 1.6 billion to USD 2.2 billion, from 2021 to 2026 at a compound annual growth rate  (CAGR) of 7.1%.  

Dubai, as well as the United Arab Emirates, is famous for safe cryptocurrency transactions and trading. A wide range of cryptocurrency companies are either based in Dubai or have set their entities in Dubai for the prevention of financial ambiguities. A crypto-based coronavirus relief effort in Dubai, the India Covid Relief Fund, has also set up its entities in Dubai. The companies avoid regulatory hurdles in India and do the conversion of crypto-based donations to fiat currencies in Dubai. 

A little while back, 

“Dubai has launched its first very own cryptocurrency known as Dubaicoin (DBIX). The price of crypto evolved 1000% over the last 24 hours. On 27th May 2021, DubaiCoin was trading approximately $0.17 and surged up to $1.13.”

What is Dubaicoin?

Considering the immense evolution of the cryptocurrency market, Dubaicoin or DBIX is the very first cryptocurrency that was launched by Dubai. The purpose of launching this cryptocurrency is to eventually replace Dirham for purchasing goods and services all across the country. This newly launched cryptocurrency is based on the public blockchain system, meaning that the blockchain ledged behind DBIX will be maintained by the public. New coins can be developed by mining them. For now, DBIX does not seem to be available on exchanges, but ginormous exchanges tend to list coins that eventually do well. 

Dubaicoin was launched by ArabianChain Technology which is a company that claims to be the first public blockchain-based in the Arabic world. The company also claimed that it wants to make it equivalent to the regular currency.

ArabianChain Technology said in a press release, 

“Soon DubaiCoin will be utilized for purchasing goods and services both online as well as in-store. The clear intention of this coin is to substitute traditional bank-backed currencies. Evolution and circulation of DubaiCoin will be monitored by authorized brokers and the city itself.”

DubaiCoin could also become just like other central bank digital currencies (CBDC) across the globe. It is backed by central banks in the country if it will eventually replace Dirham and will be accepted all across the UAE. It is crystal clear that presently DubaiCoin is not exactly a CBDC. China is the only country all across the world that has already issued its own CDBC and is testing it.  Nevertheless, national states including the United Kingdom (UK), United States (US), European Union, and India, have also been considering their own CBDCs.  

Price Surge of Dubaicoin

“The newly launched cryptocurrency of Dubai, based on the public blockchain, DubaiCoin, or DBIX, reportedly surged by 1000% only within 24 hours after falsely claiming to be the official cryptocurrency of Dubai”

The company behind DubaiCoin, ArabianChain Technology, claims to be the very first public blockchain in Dubai that permits users to mine the currency and efficiently maintain blockchain ledger. Circulation and utilization of DubaiCoin are not only controlled by the city itself, but also by authorized brokers. DubaiCoin was listed in numerous trading platforms such as CoinMarketCap, with an initial price of $0.17. On Thursday 27th May, the price rose up to $1.13 after ArabianChain Technology claimed in a press release that this cryptocurrency will soon replace Dirham and will be utilized for purchasing goods and services

An Elaborate Phishing Scam  

As the claims of ArabianChain Technology seems to be very convincing, on 28th May 2021, Dubai Media Office tweeted that 

“The new cryptocurrency called DubaiCoin was never approved by any official regulatory authority. The website which is promoting DubaiCoin is an elaborate phishing scam that is specially designed to have illicit access to the personal information of website visitors to carry out fraudulent activities” 

On late Thursday night, Dubai Electric Security Centre also announced that the website which is promoting DubaiCoin is not a licensed site. Allegedly, their agenda is to steal people’s email addresses, phone numbers, passwords via an electronic form to carry out an illicit activity. 

After the clarification from the government of Dubai, ArabianChain Technology tweeted 

“Please be careful, we have not made such an announcement. Also, beware that the following website is fake and a scam: dub-pay.com/en/”

On its website, ArabianChain Technology claims that it is an open-source community-based project. With an agenda of developing an open-source, peer-to-peer, decentralized, consensus-driven, blockchain-based platform for distributed ledgers such as cryptocurrencies and numerous other digital assets. The website also affirms that rather than giving a predefined set of instructions to the users such as bitcoin, ArabianChain Technology permits its users to create their own instructions according to their preferences without any ambiguity.   

My Thoughts About The Future of DubaiCoin

Cryptocurrency acquisition is already on the way all across Dubai, leading to the fact that DubaiCoin will not be the very first cryptocurrency to be used across the country. Petro, the national coin of Venezuela, was created in an attempt for the elimination of national debt. Unfortunately, the project failed because neither did the coin prove to be impactful on an international scale, nor did it solved some of the most important economic issues within Venezuela. 

Dubaicoin could prove to be divergent in comparison to any other predecessors. There would be no wrong in saying that the United Arab Emirates possesses incredible economic strength because of all of its national resources as well as a growing economy. Acquisition of cryptocurrency in such a region will leave an impact on the financial market extensively.

Talking of DBIX’s price, I believe that in the upcoming years, the price of DubaiCoin will be as low as USD 0.37566337 and as high as USD 0.43809971. I believe1 DubaiCoin will be worth USD 0.43809971 one year from now, which is 2x times higher as compared to the current price of DBIX. The DubaiCoin price prediction and DBIX forecast will depend upon the total worldwide money flowing into the cryptocurrency market, and the growth of Bitcoin and other cryptocurrencies. 

Last but most important thing I want to bring under the spotlight is that, considering the circulation of a scam website,  governments all across the globe must enforce such measures that detect such illicit and unlicensed websites even before it reaches out to people. The access to such websites must be denied ahead of time. Acquisition of sophisticated and appropriate measures for the detection and prevention of illicit money transfers, unauthorized access, and relevant fraudulent activities is the mandatory need of the hour, but so is the the protection of the cryptocurrency user.

Disclaimer: The opinions in this article belong to the author alone. Nothing in this article constitutes investment advice. Please conduct your own thorough research before making any investment decisions.