Litecoin Cryptocurrency rises 30% after fake news release

A false report last Monday (11) which was retweeted by Litecoin’s official Twitter profile ended up increasing the value of the cryptocurrency, and then made it plummet, when it was confirmed that the information was not valid.

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    The fake news said that the retail giant Walmart was closing a partnership with Litecoin to accept the currency as a form of payment. When the news was retweeted by the cryptoactive’s official Twitter profile, people understood that the information was real, which caused a high of more than 24% in the value of the cryptocurrency, with the value reaching around US$ 231,11 (Close of BRL 1.215 in the current quotation).

    The release with the information was submitted by TheGlobeNewsWire, one of the largest press release distribution platforms in the world, and was published by many news sites. According to the official responsible for retweeting the information on Litecoin’s official profile, he believed the information was real when he saw the Reuters website posting about the partnership.

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    Graph of Litecoin value in the last 7 days. The peak is the period of false news. (Image: Reproduction/CoinMarketCap)

    Walmart, still on Monday, confirmed that it had no relationship with the cryptocurrency. The Litecoin Foundation, as well as Walmart and GlobalNewsWire, are working with authorities to find out who was responsible for the false news.

    Until the closing of this article, Litecoin was worth US$ 89 (about R$ 946,24).

    Fake news

  • Charlie Lee, creator of the cryptomeda, told Bloomberg that he has no reason to try to inflate the currency’s price from false information, as he only has it 20 Litecoin tokens, disclaiming the blame for what happened.

    Using Fake News to inflate the value of cryptocurrencies is an old practice of some speculators. The process, which is known as “pump and dump

    “, it involves a group inflating the price of the asset and selling it during the rally, just when the reason for the increase in value is discovered to be false and it falls back down, they have already profited. Groups of speculators specializing in this process exist in droves on Telegram and Slack, trying to manipulate the market so that they can make a profit.

    The scam is generally seen as a dishonest tactic, mainly because it often involves the spread of false information. The Litecoin case points out that what happened was an example of pump and dump

    , but the investigation is still ongoing.

    Source: Bloomberg, Business Insider, CoinMarketCap

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