Cryptocurrency drops after Walmart refuses to sign deal with Litecoin

Litecoin – which rose up to 33% at one point – wiped out almost all of its gains. Bitcoin, the largest digital asset, was down 2% as of 11:25 a.m. in New York, having previously risen nearly 4%. Other digital assets also retreated, with Bitcoin Cash, Ether and EOS all declining.

The statement, released via Globe Newswire, is not authentic, a Walmart representative confirmed to Bloomberg News. The company is trying to know more about the release.

Alan Austin of the Litecoin Foundation said he could not immediately comment when reached by Bloomberg News by phone. Litecoin officials could not immediately be contacted for comment.

Meanwhile, a verified Litecoin Twitter account removed a tweet that linked to a press release announcing the partnership.

The news, which was quickly dismissed, spread like wildfire on Twitter, where a lot of crypto discourse takes place. Crypto Backers – Although They Question Why walmart may partner with lesser known and less used coins than BitcoinFor example — Thrilled to see another big name coming behind the movement.

“This was extremely good news for crypto, which solidified the ‘polychain’ thesis into a dark eye on space within minutes,” said Stephen Ouellet, chief executive and co-founder of FRNT Financial. “Threats of market manipulation have been one of the primary focus of regulators around these assets and to say that they will get their attention is an understatement.”

Scams are not new in crypto. In the summer of 2020, the Twitter accounts of some of the most prominent US political and business leaders were hacked in an apparent attempt to promote a bitcoin scam. Everyone from Barack Obama and Joe Biden to Jeff Bezos and Warren Buffett were targeted as part of that attack.

The attempts behind the Litecoin fraud included the creation of an email address based on a fake domain name, as well as a fake news release that contained quotes from Walmart executives. The release was submitted to a known public relations wire service and was picked up by major news outlets including CNBC, Reuters and Bloomberg News.

While hoaxes that move asset prices in the financial markets are on the rise all the time, cryptocurrencies seem to provide particularly fertile ground for fraudsters. Unlike stocks, trading is mostly untraceable – scammers leave few tracks for regulators to follow. And it doesn’t take much time to transfer the property. Traders are conditioned to expect frenzied price reactions to trivial news – when, say, Elon Musk tweeted his approval for a crypto project.

This story has been published without modification in text from a wire agency feed. Only the title has been changed.