Clearly, there are not enough cryptocurrencies already in the world.
Dubai launched its own cryptocurrency – DubaiCoin (DBIX). Based on a public blockchain, the crypto is trading only on a select number of exchanges and public blockchain will allow people to generate their own DubaiCoin by mining them. The price of the cryptocurrency 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.
However, the government of Dubai has clarified that DubaiCoin has not been approved by any official authority. The Dubai Media Office tweeted that the website promoting the cryptocurrency is a phishing campaign that has been designed to steal sensitive information from its visitors.
What is DubaiCoin?
The DubaiCoin was launched by United Arab Emirates (UAE) based company, Arabianchain Technology, which claims it to be the first public blockchain-based cryptocurrency in the Arabic world. The company informed that the circulation of the new digital currency will be controlled by both the city itself as well as authorised brokers.
But the DubaiCoin appears to be somewhat different from regular cryptocurrencies. For instance, mining would render the coin volatile, but Arabchain has said that the city of Dubai is regulating its price. It is likely to qualify as a central bank digital currency. Being based in Dubai should give the coin some stability since the Dirham is always stable against the dollar due to certain international treaties between the two countries.
Why was DubaiCoin trending?
DubaiCoin was launched at a price of $0.17 and was listed on several trading platforms. But since then, most have removed it, including market-leading CoinMarketCap. However, on Thursday, crypto.com listed its price at $1.13, indicating a whopping 1,114 per cent increase, with a supply of 4.26 million and a market capitalisation of $4.84 million.
How to buy DubaiCoin
As of now, DubaiCoin is not available on any major exchanges, but interested investors who are looking to buy the cryptocurrency will have to do so by exchanging it for Bitcoin or Binance Coin at exchanges where the coin is still available. Dubaicoin is currently available for purchase on the following exchanges – HitBTC and Cryptopia. However, DubaiCoin is a fairly new cryptocurrency, and investors have been advised to research its legitimacy before choosing to invest in such a brand new project.
Should you buy it?
No. Unless losing money in unverified investments in the hope of getting lucky is your thing. Even then, don’t.