The value of major cryptocurrencies plummeted on Friday with the cryptocurrency market still facing volatility since the massive sell-off the previous week. Today has also followed a similar direction as the price of Bitcoin is now trading at $34,000.
The sudden plummet in value is probably not too heavily linked to this scandal but it’s more negative news in which the crypto world can do without. DubaiCoin wreaked controversy after claiming to be Dubai’s official digital currency.
The price astonishingly went up 1000 percent within the space of twenty-four hours after declaring that it was generated by a blockchain developed in ArabianChain.
Dubai’s government and ArabianChain have both declared these claims to be untrue, the government stating that DubaiCoin was never approved of. It even went so far as to call such a claim a phishing fraud. A counterfeit press release, now made private, was released under Arabian Chain Technology, a Dubai-based blockchain that is known to be legit.
Top data providers such as CoinMarketCap have removed the cryptocurrency from their listings ever since.
Bitcoin plummeted below 40K USD (or 28,195 GBP. It fell by approximately 11 percent to around 35,522 USD on Friday.
Cryptocurrency mining has had a substantial effect on the environment. To resolve that issue, Bitcoin miners based in North America, via the Bitcoin Mining Council, are working towards bringing more transparency to their power usage. Before that, Elon Musk triggered a sell-off after announcing that Tesla was dripping plans to acknowledge Bitcoin in the form of payment in response to environment-based concerns.
Iran also declared its plans on Thursday on banning cryptocurrency mining due to its power-consuming nature as the country’s main cities started experiencing power outages. This was most likely the result of a drought affecting the country’s hydropower generation, the cryptocurrency mining draining more power than what was being generated.
