A press launch linking the retailer and digital foreign money collectively was faux. Each Walmart and Litecoin say they don’t have a partnership.
Walmart is the biggest retailer in the US, according to the National Retail Federation. So, an announcement of a partnership with a cryptocurrency could be massive information.
On the morning of Sept. 13, a press release was circulated by GlobeNewswire, a service that distributes press releases to media organizations, that mentioned Walmart had teamed up with Litecoin to just accept the cryptocurrency as a type of fee. Instantly following the press launch, individuals on social media with hundreds of thousands of followers started sharing the information. Information organizations, together with Reuters and CNBC, printed tales concerning the partnership announcement.
Is Walmart partnering with Litecoin cryptocurrency?
No, Walmart shouldn’t be partnering with Litecoin. The press launch linking Walmart and Litecoin was faux.
WHAT WE FOUND
Walmart and Litecoin Basis each mentioned the press launch was faux and that they don’t have a partnership.
“Walmart had no information of the press launch issued by GlobeNewswire, and it’s incorrect. Walmart has no relationship with Litecoin,” the Walmart statement said.
“The Litecoin Basis has not entered right into a partnership with Walmart of any form,” the Litecoin Foundation statement said.
In response to its assertion, the Litecoin Basis mentioned a member of its social media workforce tweeted concerning the illegitimate partnership on the Litecoin Twitter account. That tweet was then deleted.
GlobeNewswire later issued a notice to ignore the press launch. In an emailed assertion to VERIFY, the corporate mentioned a fraudulent consumer account issued the faux press launch.
“This has by no means occurred earlier than and now we have already put in place enhanced authentication steps to stop this remoted incident from occurring sooner or later,” the corporate advised VERIFY.
Instantly following the distribution of the faux press launch, the worth of Litecoin surged.
According to CoinMarketCap, a cryptocurrency price-tracking web site, the worth of Litecoin was round $175 Monday morning and skyrocketed to only over $230 following the faux press launch. As soon as the phrase unfold that Litecoin and Walmart weren’t partnering collectively, the cryptocurrency’s value fell to round $180.
The hoax partnership announcement gave the impression to be a case of value manipulation – or a pump and dump – the place somebody fraudulently causes the worth of one thing to go up and cashes out earlier than it goes again down.
The U.S. Commodity Futures Trading Commission says digital currencies and digital tokens are largely unregulated and urges customers to make use of warning when shopping for digital foreign money.