New cryptocurrency dubaicoin jumps in value by 1000 per cent

A controversial new cryptocurrency has seen a 1000 per cent value increase in the past 24 hours, despite being labelled an “elaborate scam”.

Dubaicoin saw its value shoot up 1000 per cent in just 24 hours despite the price of other cryptocurrencies continuing to fall.

The city’s government has denied any official link, with the authority even claiming it is part of an “elaborate scam”, The Sun reports.

A statement tweeted by the media office of Dubai’s government said: “Dubai Coin cryptocurrency 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.”

Dubai Coin cryptocurrency 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. pic.twitter.com/Q0HBXfqaDO

— Dubai Media Office (@DXBMediaOffice) May 27, 2021

The response from the Dubai government comes after a statement circulated last week via a website call DubPay, claiming dubaicoin had been named the official digital currency of Dubai.

“DubaiCoin will soon be able to be used to pay for a range of goods and services both in-store and online, with the clear intention for the coin to be used in place of traditional bank-backed currencies,” the statement read.

“Circulation of the new digital currency will be controlled by both the city itself and authorised brokers.”

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Dubaicoin jumped in value by 1000 per cent. Picture: ArabianChain Technology

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According to data Crypto.com the price of dubaicoin rose from rose from $US0.09 ($A0.12) to $US1.13 ($A1.47) on Thursday.

ArabianChain Technology, the company that founded the coin, claims to offer the “first public, decentralised and consensus-driven blockchain in the MENA region”.

It also denied it made claims it was Dubai’s official cryptocurrency, confirming the website DubPay was fake.

“We haven’t made such an announcement, please be cautious. Also this website: http://dub-pay.com/en/ is fake and a scam. Please be careful,” the company said in a tweet.

An official from ArabianChain Technology told the Khaleej Times that an investigation was underway.

It comes as bitcoin and other cryptocurrencies such as ethereum deal with weeks of struggling prices.

The price took a major hit when Mr Musk announced Tesla would no longer accept bitcoin as payment due to concerns about the environmental impact of bitcoin “mining”.

China’s powerful State Council also sent investors scurrying with a statement issued late on May 21, saying more regulation was needed to protect China’s financial system from crypto trading and mining.

The State Council said it was necessary to “crack down on bitcoin mining and trading behaviour, and resolutely prevent the transmission of individual risks to the social field”.

“We should be more alert and look for potential risks.”

The statement came after a warning against crypto trading by three state-backed industry associations — the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China