What Does it Take to Make a New Cryptocurrency Go Up by 1000% in 24 Hours? A Few Sentences on Social Media!
Dubai. An ultra-modern, exotic metropolis deep in the heart of oil-wealth territory, which has captured the imagination of a wide spectrum of luxurious lifestyle-orientated hedonists, international businesspeople, celebrities, entrepreneurs and national leaders for many years.
Although the appeal of Dubai to the international community is largely as a result of its plate-glass, uber-cool high-rolling wealth, its origins lie in a very different and far more traditional – if not almost obsolete – commodity: oil.
It is therefore as ironic as the highly advanced lifestyle that has been funded by the proceeds of the supply and demand of petrochemical products that Dubai is becoming a somewhat controversial center for cryptocurrency.
It had to happen. Cryptocurrency is the absolute future of all areas of money, and Dubai is one of the world’s most popular destinations for capital resources from all over the world. Its tax-free, non-bureaucratic status and the hedonistic pleasures – also quite ironic – that it offers those who have business interests are extremely attractive in a world in which the government is increasing its grip on the public.
Just as seemingly endless lockdowns in most Western countries have blunted the appetite of everyone from small business entrepreneurs to social media influencers, Dubai has been a sanctuary. Over the past few months, young movers and shakers have been spending time there in order to continue their business whilst avoiding the government feeling their collar for simply walking to the shop, or visiting friends or family.
The clean set of heels shown to the governments of European countries in the form of hundreds of self-made influencers heading for Dubai should be a clear sign that liberty and cryptocurrency go hand in hand, and Dubai certainly recognizes this.
Last week, the Dubai Multi Commodities Center (DMCC), which was established in 2002 by the Government of Dubai to provide the physical, market and financial infrastructure required to establish a hub for global commodities trade, launched its new ‘Crypto Center’ which has set it up as a potentially important region for the development of cryptocurrency traders and blockchain related companies.
A very smart move indeed, and one which is likely to give international cryptocurrency advocates, traders and blockchain technology developers a sustainable home with a lot of global influence.
A note of interest with regard to this is that the UAE government is very much supportive of this initiative which is a major step forward for those wishing to establish sustainable entities that can work with cryptocurrency exchanges on a regulated basis.
As with most new dynamics in the Monaco of the Middle East, circumstances can change very quickly and just two days after the DMCC announced this absolute breakthrough, Dubai has its very own cryptocurrency, which has been experiencing an interesting rush in terms of value recently.
Called DubaiCoin, it was designed primarily to help facilitate commerce in the Arab world. Its developers also created ArabianChain, a new Ethereum-based chain that is decentralized, peer-to-peer, open source and consensus-driven platform.
Over the past two days, DubaiCoin rocketed up in value by over 1000% after a press release hinted that it was to be made the official cryptocurrency of Dubai.
Just a short time after the press release was made available on the public domain, the Emirati government issued a tweet denying the story and calling it “an elaborate phishing scam.”
This once again highlights how cryptocurrency values are affected tremendously by members of the public putting announcements, whether true or false, into the public domain and making one-line statements on social media such as Twitter.
Entire stocks of banks, commodities and blue chip companies do not rise and fall by thousands of percent even if a major global war occurs or if the largest bank in the world goes insolvent. Cryptocurrency is on a whole different level and its value is driven by word of mouth, and driven to incredible levels.
On Friday last week, the government of Dubai’sA Media Office stated that DubaiCoin 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,” the government warned.
The price of the crypto rose by 1,000 per cent over the last 24 hours. According to Crypto.com, DubaiCoin was trading at around $0.17 but picked up to $1.13 on May 27.
ArabianChain Technology, the founder of DubaiCoin stated that it did not make any such claim and that the website that issued the PR is fake.
So there we have it once again. The real movers and shakers in the entire global markets are people who disrupt the value of cryptocurrency by simply firing up a laptop.
The surge brought it to the notice of the Dubai Electronic Security Centre, following which it issued a statement.