Newsletter: Not hedged
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After a press release falsely claimed that Walmart would allow online shoppers to pay with cryptocurrency, the price of Litecoin temporarily soared on Monday morning.
According to the news published on GlobeNewswire’s distribution platform, the world’s largest retailer has established a partnership to allow Litecoin to be used as a payment method for its e-commerce store starting in October.
There are Wal-Mart and Litecoin logos, including statements from Wal-Mart CEO Doug Macmillan and Litecoin founder Charlie Lee.
The Litecoin Foundation, a non-profit organization that promotes cryptocurrencies, later stated on Twitter that it “has not established a partnership with Walmart.”
According to news media reports, the retailer stated that the statement was untrue.
According to Bloomberg data, false press releases caused the price of Litecoin to rise by 32.8% to $235.88. Within 30 minutes, it started to fall back and the trading price rose by less than 1% to $178.21 at noon on Monday.
The false release seems to take advantage of the enthusiasm that cryptocurrencies may one day be used as a medium of exchange. Only a few retailers and consumer brands have accepted encrypted payments, including e-commerce company Overstock.com.Electric car manufacturer Tesla says it will accept Bitcoin before Backtracking Responding to environmental issues in May.
News media including Reuters and CNBC initially reported the announcement before updating or retracting their original article. A Twitter account called @Litecoin has 761,000 followers, Deleted the original tweet This includes links to fake news releases.
GlobeNewswire later deleted the press release from its website and issued a information Say “Journalists and other readers should ignore news releases.” GlobeNewswire’s parent company Intrado did not immediately respond to a request for comment.
Before, fake news has affected Wall Street. In 2015, the U.S. Securities and Exchange Commission Prosecute Bulgarian businessman It claimed to have issued a false takeover offer for cosmetics manufacturer Avon.
Trader, he made a fake press release and has a fictitious Announcement of takeover offer The U.S. securities regulator accused him of being able to sell his shares at artificially high prices through the SEC’s online company filing database before the nearly 20% increase in Avon’s stock price disappeared.