Traditional media outlets have once again committed a huge mistake covering the crypto world. Just a few days back- we have seen a press release circulating online about Dubai creating its own cryptocurrency, and it also reads, “will be controlled by both the city itself and authorized brokers.” The ones who have created this fake press release have done it using a verified name under Arabian Chain Technology. This firm is respected for its blockchain advancements, and it also owns a coin called DubaiCoin (DBIX).
In a matter of hours, the press release was everywhere, and it caught the attention of many retail investors looking for the next big altcoin gem. The fake press release claimed that this coin would be the De-facto Digital Currency, and it has huge potential in the future. They have directly inserted a payment link to buy the coin through a website called “dub-pay.com.”
The website is now inactive, but a record on the internet archive shows us three steps to follow for people to invest in the coin. They had asked to fill a form with some basic information- name, phone number, and email address. Some experts of the Dubai government feel that this is another elaborate phishing campaign done by media outlets promoting it.
In 24 hours, the coin went from $0.17 to $1.50, which is a 1000% spike, and as people got to know it was fake news, the price dropped to $0.32, and at the time of writing this article, it is trading around $0.2. Even though it was only listed on the HitBTC crypto exchange, the coin had a trading volume of $592,000.
So, how did this even happen in the first place? Famous media outlets carrying paid campaigns without doing any due diligence has created such chaos for hundreds if not thousands of investors. Some are using attractive headlines to get more clicks and screen time, and they never focus on the fundamentals of cryptocurrency. They are spreading hopium for first-time investors, as they are only showing the positive side of the story. CNBC, a very popular Indian media outlet, is publicly making random statements on this DubaiCoin, and they have not even verified whether the press release was true or fake. You can clearly see how misleading such actions can be:
The reporter mentions that this coin can be used to pay for goods and services in Dubai. Still, the government of Dubai had already released a statement saying,” it was never approved by any official authority.” Without proper research, the channels mislead the public and make them believe that cryptocurrencies are a get-rich-quick scheme.
This is not something new to see from Indian media outlets talking about cryptocurrencies and blockchain technology. Still, they now carry a huge sense of responsibility to deliver value-adding information for the viewers.
The crypto world is already complicated to navigate, so if news channels do such on cryptocurrencies, every retail investor in the country will get the wrong idea about crypto markets. Some websites completely focus on shitcoins like Shiba Inu and STOPELON, while ignoring the main things happening in the market.
To get more views and ratings, they are deliberately choosing shitcoins that have no real utility and promoting them for their larger audience. This may not immediately reflect in the markets, but it changes the mindset of a young crypto investor. Instead of searching for projects that have solid fundamentals, they will start chasing coins that can give 1000% return and risk all their capital.
As a media company, they have failed to deliver high-quality and verified information, so it is time for you to recognize that all traditional media outlets are not telling the actual truth. It is now more important than ever to conduct extensive research and understand multiple perspectives before you go hunting for another cryptocurrency. Look out for such scams and stay away from media promoting them.
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
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