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The Curious Case of DubaiCoin
Govt-backed crypto or an elaborate scam?
A few weeks ago I wrote about Governments launching their own digital currency backed by their Central Banks. So it was with some interest that I read the news about Dubai Coin — ostensibly launched this week as public crypto to be used for transactions in Dubai. Sounds good? there is more! The crypto’s value went from $0.17 to $1.13 in a day! So what’s the catch in this? Well, now there are reports from the Govt. of Dubai that the whole thing is an elaborate phishing scam and investors should take heed!
What is Dubai Coin?
Dubai Coin (DBIX) was launched by the UAE company ArabianChain Technologies and marketed as the first public crypto in the Arab world. The coin would be used for offline and online transactions in lieu of traditional bank-based currency. Its supply would be controlled by the city and authorized brokers. This wording made it sound the crypto was backed and managed by the city government. Naturally, major business news outlets reported on this, and investors jumped at the…