The cryptocurrency scene witnessed a recent hype around a newly created cryptocurrency. This project claimed to be an initiative by one of the biggest cities in the world. We are talking about Dubai Coin, which recently launched. Currently, despite the downtrend in the crypto market, Dubai Coin managed to gain more than 1,000% within 24 hours. That’s how this project managed to gain huge attention, not only in the crypto sphere but in the mainstream news as well. Who is behind this project and is the Dubai Coin scam story true?
What is Dubai Coin Crypto?
Dubai Coin is a cryptocurrency that recently launched. The people behind the project claim that the actual city of Dubai endorses this coin, and the project aims to replace the use of cash throughout the city. Of course, those are pretty “big claims” from the people behind this project, as only government officials can back up such affirmations.
The coin is not listed on any major exchange and was got removed from the CoinMarketCap listing. No one knows yet why that is, but many speculations have risen, which we will tackle in this article.
The only known entity behind Dubai Coin is basically a UAE-based company called ArabianChain Technology. It claims that they offer the first decentralized coin in the MENA region, along with the help of DubPay, another major investor. The website which started Dubai Coin also appears to be down.
ArabianChain Technology quickly washed its hands from the project, calling any article which claimed they were involved a scam and fake news.
Are the Allegations of the Dubai Coin Scam True?
Dubai Coin was listed at a price of USD 0.15 and was considered an attractive investment. Buying into the future payment ecosystem of one of the best cities in the world sounds like a great plan. After inception, prices skyrocketed to USD 1.13, news of this prominent launch got to the official governmental entity of Dubai. They immediately issued statements calling the entire project a scam.
Dubai Coin cryptocurrency was never approved by any official authority.
The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors. pic.twitter.com/Q0HBXfqaDO
Coincidently, the exchange which pushed the Dubai Coin scam is currently down and can’t be accessed. Many are speculating that this has to do with the recent scam allegations, but of course this remains a story to be continued.
How to spot Scam Coins?
It as become well known that many crypto projects appear overnight with pretty big claims. Everything sounds nice and interesting, until the scam issue surfaces. In order NOT to participate in scams and lose your hard-earned money, the below are important due diligence steps one must ALWAYS take before buying into any new crypto project:
- Read the whitepaper and proposed business plan
- Check out the financials (budgets and forecasts)
- Understand the Token economics
- See if the project’s purpose makes sense in the actual world and adds value to economies
- Try to research the project’s claims (for Dubai Coin’s case, check of the actual Government in Dubai actually backs the project, as it turned out they didn’t)
Conclusion
Many crypto projects surface with the sole aim of gathering money and disappearing. Being a savvy knowledgeable investor only takes proper background checks and research. We often would find results from the first 10 mins of googling about certain projects, while other times we might not find any answer. Always invest money you can afford to lose without breaking the bank.
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Rudy Fares