DubaiCoin turned into a scam after gaining mainstream attention - TCR

• DubaiCoin has taken hard-earned and saved funds of several traders
• Website promoting DubaiCoin was a scam stealing personal data of traders
• The plunge in the assets price was not for a longer timeframe, as the asset has been observed gaining bullish momentum

DubaiCoin had made a bigger splash in the cryptosphere a couple of days before. The cryptocurrency was known to be launched by the Arabianchain Technology, a UAE-based blockchain. A couple of days early, the crypto asset surged by 1000% over the period of 24-hours. After tremendous gains, the coin attracted several headlines globally. 

However, the coin is yet to receive sanction from Dubai authorities. The official authorities claimed that the digital token is conducting a phishing operation. Indeed, the crypto project turned out to be a scam, which took the entire savings of a few investors.

Will DubaiCoin replace Dirham?

Dubai is a city that is also known as a haven for digital assets traders. Arabianchain Technology, the first known blockchain of middle-east has launched DubaiCoin (DBIX) in the country. According to the blockchain firm, its crypto-asset will expand for broader products and services.

The firm believed that the digital coin would act as a CBDC and replace the government issued Dirham. Hence, the circulation of DBIX was expected to be controlled by both brokers and the higher authorities. However, the firm did not clear a few specific and essential points in terms of regulation. 

Notably, the stability of DBIX proved that it never sought to replace the national fiat currency. In contrast, Dirham always remained stable against the United States dollar, but DBIX never enjoyed such stability. 

What helped DBIX to skyrocket?

On May 24, 2021, a fake PR was published by PR Newswire, which now has been removed. The release claimed that the firm behind DubaiCoin is legitimate and is making an official digital currency. To sprinkle little trust, the firm claimed that both the authorized brokers and Dubai itself would control the circulation of the asset. Furthermore, the firm claimed that the cryptocurrency would replace the government issued Dirham.

Simultaneously, the announcement claimed that traders could buy the tokens using a website entitled dub-pay. The news got viral on social platforms at lightning speed. Following the trend, several leading media outlets and a large count of websites eyed it. Hence, with the news, the cryptocurrency price listed on the HitBTC exchange surged by 1000%. 

Soaring crypto was called out to be a scam

When Arabian Technology’s crypto coin surged, achieving higher price levels, it took the attention of the Dubai Media Office. The Dubai Media Office tweeted to reveal the truth behind the virtual project. 

According to the Dubai Media Office, Dubai Coin cryptocurrency is unapproved by Dubai’s official authority. Moreover, it claimed that the websites promoting the asset are an elaborate phishing scam campaign stealing the personal data of individuals.

On the other side, Arabianchain blockchain itself tweeted to confirm that they never made such an announcement regarding DubaiCoin. Moreover, the blockchain firm highlighted that the dub-pay website is a scam, and traders need to stay careful.

Later, on Thursday, the Electronic Security Centre of Dubai announced that any official entity does not approve DBIX of the city.

Following the favourable factors, the price of DBIX has achieved the level of $1.5 within 24-hours. However, by the claims of Arabianchain and Dubai Media Office, the price plunged heavily to $0.32. According to Dubai Electronic Security Centre, since the scam news began to reach the traders , the crypto coin price plunged heavily too.

Few investors lost their entire savings

The plunge in the price of DubaiCoin impacted several investors. According to Khaleej Times, a UAE-based resident claimed he lost his entire savings. A man named Aristeo Batol heard of crypto assets last week via his friend. According to the report, the mad inventor spent approximately Dh15,000, which is about $4,083 on the project. However, the cryptocurrency went into the dark, and several traders like Batol lost their hard-earned funds.

Following the scenario, Arshad Khan, the Chief Executive Officer of Arabian Bourse, advised traders to conduct due diligence. Before investing in a new virtual project or cryptocurrency, he explained that every investor should run owing diligence.

DBIX is still boosting after labelled as a scam

According to the data from Crypto.com, after sliding downwards, it is again starting to hold bullish momentum. After the scam reports, the cryptocurrency’s price fell by more than 129%. Still, the coin has again surged by more than 111%. At press time, DubaiCoin is trading at the price level of $1.13, as per crypto.com. Hence, over the past seven days, DBIX is still up by more than 1,079%. Overall, the trading activity of the crypto asset is pretty impressive.