Is Walmart Ready to Accept Cryptocurrency?
News has been making the rounds recently about Walmart, the largest retailer in the United States, going into partnership with Litecoin cryptocurrency. According to the news, Walmart was supposed to soon begin to accept payments in cryptocurrency.
Walmart’s New Payment Options
The retail giant, Walmart is making moves to accept crypto as a means of payment. It recently advertised a new career listing on its website for the role of digital currency and cryptocurrency product lead. The successful candidate would be responsible for developing a digital currency strategy end designing a product roadmap. The applicants will be partnering with other leaders in products and design and identifying crypto-related investment and partnership opportunities. This job opening indicates that Walmart is looking to expand its payment options through digital currency.
No Partnership with Litecoin
Walmart has explained that, although it is looking into additional payment options, it is not accepting Litecoin as payment through its stores. The announcement appeared real enough that many Media outlets picked up the story. Even the Twitter account which promotes the use of Litecoin linked to the post. Subsequently, the value of the currency moved up by over 30%.
However, Walmart issued out a statement saying the news was false. The latest thing in finance and one of the oldest investors' foul play is the classic pump and dump strategy. Someone started a fake news release and took advantage of the hype around cryptocurrency to bring up the price of Litecoin then Walmart refuted the release.
Securities lawyers said there was little doubt that there will be an investigation by the Securities and Exchange Commission and possible charges against those behind such false information. Such an action is a misrepresentation that involves a public issue. This is an area where the SEC has jurisdiction over there. This is also likely to lead to a call for stiffer regulation of the crypto industry which accounts for billions of dollars in trading on the exchange market.
Such pump-and-dump schemes are not uncommon. Recently, the chairman of SEC Gary Gensler called on Congress to Grant regulators more power over crypto products and exchanges.
Pump and Dump
The news was first released by global Newswire. Global newswire provides companies with a platform to publish announcements. A state is stated in a statement that it acted quickly to withdraw the press release that was placed by a fraudulent account. It stressed further that this was a first and they would take further steps to prevent such from happening in the future. The news agency also agreed to work with appropriate authorities to investigate deeper into the matter.
Walmart only got wind of the news after reporters called it to confirm that accounts of some news outlets had published information based on the release. They refused the information saying they had no partnership with Litecoin. They maintained that such information was fake. Again, Litecoin is relatively not as popular as many other cryptocurrencies, so why would Walmart want to partner with such? Quite a strange choice of cryptocurrency.
This made it a likely choice for the person propagating the news and makes it an unlikely choice for Walmart, a major retailer. Such hoaxes happen every once in a while. Recall in 2010 there was another news publication that published a fake release saying that General Mills was the subject of a federal investigation. Such information has impacts on the stocks of the company in question.
Stockbrokers sometimes disseminate false releases to manipulate the shares of several public companies. Most big corporate news organizations have secure systems for letting companies submit releases for distribution to the public. They usually have a process in place to verify press releases before they go out to the public.
Future of Money
Crypto fans view Bitcoin, Ethereum, and Dogecoin as the future of money for the globe. Blockchain technology allows crypto to create a digital ledger that records transactions. These transactions are a safe form of currency and are notes available for manipulation or control by any central body because they are decentralized.
Moreover, there have been some pump-and-dump schemes which are designed to take advantage of the public, while making big bucks for scammers. They generally involve influencers who receive incentives and stakes in return for promoting a token in order to raise its value. And when the value goes up, they dump the coins and everyone else sees their investments lose value. Eventually, they find out that they are holding onto tokens without value.
These schemes have marked the latest twist in the changing story of cryptocurrencies. This has made overnight millionaires while bankrupting others simultaneously. Even Dogecoin, a meme cryptocurrency that started as a joke gained mainstream attention mainly because high profile figures such as the likes of Elon Musk are associated with the community. Regardless of this, time would tell how long such a bubble could last because there are no fundamentals to the coin. It’s just a joke.
https://youtu.be/gxJOzDeUdf8 Elon Musk Panel Discussion
That said, I like the community though because it doesn’t take itself too seriously. Also, there are many smart people associated with the project. So, let’s see how that one goes. In fact, Mr. Musk admitted in a recent chat that he pumps but doesn’t dump. And if the price of Dogecoin goes down, it affects him. So, there is a conflict of interest at play. People should be careful who influences their financial decisions because they would most likely have vested interests.
Avoiding pump and dump schemes
A pump and dump is a securities scam. The scammers create false hype about a stock in order to generate interest. Once unsuspecting investors start to buy the shares and the price of the stock goes up then they pick a point where they dump the shares, causing the price to go down suddenly. It is important for investors to research before jumping on assets due to fear of missing out.
By the time you press the buy button, you’re already late. You’ve missed the bus. The point of entry would have been too high such that there is a very low likelihood of them making any returns.
This is typically done through discord channels or forums or social media. The owners could also get influencers to promote the coin in exchange for incentives in form of tokens. Sometimes the pump-and-dump schemes in some circles are referred to as a rug pull.
You need to be careful when an influencer urges you to buy into tokens at random. They typically promote tokens with social media campaigns and give thousands of free coins to followers and promised a number of other incentives just to generate hype and catch gullible people unawares.
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