The launch of a digital currency that could purportedly be used to buy goods online and in-store is a scam, Dubai's government said.
Dubai Coin – a cryptocurrency used for a trial in 2017 and later shelved – was "relaunched" this week amid claims it had official backing.
Its value rose 14-fold from below $0.09 per coin on Tuesday to $1.13 as of 6.45pm UAE time on Thursday, as investors snapped it up.
But the relaunch was a scam with no official backing, Dubai Government Media Office said on Thursday night.
"Dubai Coin cryptocurrency was never approved by any official authority," it said.
"The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors."
It is not clear who is behind the scam.
ArabianChain Technology, a UAE-based blockchain start-up that set up Dubai Coin in 2017, said the relaunch was fake and that its name and logo had been used fraudulently in a news release and website.
The company, which owns the Palmex cryptocurrency exchange, shelved Dubai Coin in 2019 to concentrate on Palmex, it said in a previous blog post.
“We haven't made such an announcement, please be cautious,” the company said on Twitter.
It also described a website offering the coins for sale as a "scam".
The website, which featured ArabianChain's logo, was purportedly being run by a company calling itself Dubpay International, but contained no contact details and is no longer operational.
ArabianChain did not respond to further requests for comment.
'Pump and dump schemes'
Although Dubai Coin was effectively shelved, it still exists and can be mined. Such coins can be used by people for nefarious purposes, such as "pump and dump" schemes.
The people behind the ploy buy coins when the price is low, then convince others to join them, causing the price to inflate. This happened with Dubai Coin this week, when a news release was sent out and picked up by a local PR newswire.
The people running the scheme then sell out before the price begins to tank. The buyers who are not in on the game are left with virtually worthless assets.
There are more than 4.26 million Dubai Coins in circulation, meaning it has a market capitalisation of $4.84 million, according to Crypto.com.
The Central Bank of the UAE did not respond to requests for comment, but it has previously issued guidance stating that it "is not presently accepting (or acknowledging) crypto-assets or virtual assets as a legal tender in the UAE".
"The only legal tender in the UAE is the UAE dirham," the regulator said in December.
"Since 2017, crypto scammers are coming up with such illegal tactics at least twice a year … they use the names of Dubai, Abu Dhabi royal family or Saudi royal family, saying that they are issuing digital assets backed by oil and gold," Irina Heaver, a technology lawyer and cryptocurrency enthusiast in Switzerland, told The National.
"People need to be very diligent. First, never invest your hard-earned money based on website news or tweets. Second, do your own research and always avoid random portals that could just come and go overnight."
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
Dubai World Cup Carnival card
6.30pm: UAE 1000 Guineas Trial Conditions (TB) US$100,000 (Dirt) 1,400m
7.05pm: Handicap (TB) $135,000 (Turf) 1,000m
7.40pm: Handicap (TB) $175,000 (D) 1,900m
8.15pm: Meydan Challenge Listed Handicap (TB) $175,000 (T) 1,400m
8.50pm: Dubai Stakes Group 3 (TB) $200,000 (D) 1,200m
9.25pm: Dubai Racing Club Classic Listed Handicap (TB) $175,000 (T) 2,410m
The National selections
6.30pm: Final Song
7.05pm: Pocket Dynamo
7.40pm: Dubai Icon
8.15pm: Dubai Legacy
8.50pm: Drafted
9.25pm: Lucius Tiberius
BULKWHIZ PROFILE
Date started: February 2017
Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)
Based: Dubai, UAE
Sector: E-commerce
Size: 50 employees
Funding: approximately $6m
Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Result
UAE (S. Tagliabue 90 1') 1-2 Uzbekistan (Shokhruz Norkhonov 48', 86')
UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
Scorline
Iraq 1-0 UAE
Iraq Hussein 28’
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The specs
Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
Power: 300hp
Torque: 420Nm
Price: Dh189,900
On sale: now
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MATCH INFO
Borussia Dortmund 0
Bayern Munich 1 (Kimmich 43')
Man of the match: Joshua Kimmich (Bayern Munich)
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
