Following the recent slump to Bitcoin and other cryptocurrency forerunners, one brand new entry has defied the market is DubaiCoin. The price of bitcoin and Ethereum have both increased overnight, but the market is still in an overall downturn due to recent volatile events in the crypto world.
What is DubaiCoin?
DubaiCoin is not affiliated with the emirate, the Government has said.
The Government also warned that DubaiCoin may well be an elaborate scam that could cost investors their cash.
“Dubai does not have an official cryptocurrency,” the Dubai Media Office tweeted on Friday, claiming that it is an elaborate phishing scam.
The coin was launched by UAE-based company Arabianchain Technology.
The company claims to be the first public blockchain based cryptocurrency in the Arab world.
The company said in a statement that DubaiCoin will soon be able to be used for a range of products and services both offline and online, and used in place of traditional bank-backed currencies.
The company said: “Circulation of the new digital currency will be controlled by both the city itself and authorised brokers.”
The price of new DubaiCoin has risen 1,000 percent in just 24 hours, surprisingly defying the rest of the market.
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
The markets took another hit when China said it was going to block initial coin offerings, block exchanges and warned against speculative trading.
It was China’s latest attempt to clamp down on what was a burgeoning digital trading market.
Bitcoin fell nearly eight percent to almost $36,000 this afternoon having fallen as low as $35,414 at one point.
The biggest cryptocurrency in the world hit $64,863 back in April.
While Ethereum has rocketed in value this year, it has dropped in recent weeks following the crackdown by China.
The surge to a record high of $4,362.95 earlier in May meant Ethereum rocketed by more than 2,000 percent since last year.
The price of Ethereum is currently $2,573.92 at the time of writing on Friday morning, according to coinmarketcap.