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NextGen Magazine

 
 

Crypto Hoax Sends Markets in Downward Spiral

By:
Chris Gaetano
Published Date:
Sep 13, 2021
Emotions, as well as cryptocurrency valuations, ran high then crashed to earth in a very short time after it was recent announcement involving Walmart was found to be a hoax, according to MarketWatch.

Holders of the cryptocurrency Litecoin saw their holdings jump 20 percent this morning following an announcement that retail giant Walmart was going to start accepting the digital token. People had reason to believe the announcement: a press release about it was sent over the Globe newswire, and an authenticated Twitter account connected to Litecoin confirmed it. At a certain point, the coin was trading at almost $230. This point was brief, however. Walmart soon came out and denied the story, saying it had no intention of accepting the cryptocurrency, at which point the price dropped to $181 just an hour later. Since then it has been hovering around this point, plus or minus a few dollars. 

The volatility and confusion has caused a bad day for the crypto market in general. Bitcoin is down 1.25 percent and Ethereum is down 3.16 percent as of publication. 

Bloomberg speculated that the hoax could have been an attempt to manipulate the notoriously volatile cryptocurrency market. Given how normalized this volatility has become, combined with the impracticalities of tracing cryptocurrency transactions, Bloomberg said it would there would be plenty of cover for such a scheme.