Dubai authorities and local media have warned investors about a fraudulent cryptocurrency project called “Dubai Coin”, which is allegedly launched as “the official digital currency of Dubai.”
Dubai positions itself as a region that creates favorable conditions for the development of blockchain and cryptocurrencies, therefore it does not lack promising projects. On the other hand, the abundance of cryptocurrency startups makes it difficult for inexperienced investors to distinguish reliable firms from scams.
Recently, the Dubai administration issued a warning about the fraudulent cryptocurrency Dubai Coin. Its issuers said it was a digital currency that was officially approved by the city government, after which Dubai Coin rose in value by 1,000%.
Dubai authorities denied this information, saying they never approved a digital currency called Dubai Coin. Later it turned out that the attackers used a special site not only to promote cryptocurrency, but also to steal users’ personal information by phishing.
Following a statement from the Dubai authorities, CoinMarketCap and CoinGecko have removed Dubai Coin from their platforms. The price of the cryptoasset immediately fell by more than 50%, and the project’s website stopped working. Previously, information was posted there that the startup is managed by ArabianChain Technology. However, a day before the official warning, the firm was quick to announce that it had nothing to do with Dubai Coin.
According to the US Federal Trade Commission (FTC), the number of cryptocurrency schemes aimed at defrauding investors has grown exponentially. Fraudsters often act under different names or on behalf of unsuspecting firms, so users are advised to take special care when choosing a project for investment.
