It’s incredible how much of a difference a hoax can make. A fabrication about Walmart accepting Litecoin caused the currency’s price to jump by a whopping 20% despite no reliable verification that it was happening. The coin has since dropped when the rumor was debunked.
How Did The Internet Get Tricked?
A fake press release started making the rounds claiming that Walmart would begin accepting the currency as a form of payment. Several publications reported the press release as fact and even posted (and deleted) by the official Litecoin Twitter account.
Because the coin would suddenly be far more useful if a major retailer like Walmart accepted it, the price jumped by an impressive 20%. Unfortunately, the rumor was quickly debunked, leaving many people owning Litecoi at its previous value, as the price fell quickly once word made the round that it wasn’t legitimate.
It was easy enough to figure out that Walmart wasn’t going to take Litecoin. First, the website linked to in the press release didn’t work. Additionally, Walmart didn’t file with the Securities and Exchange Commission, which it would do as a publicly-traded company. Finally, Walmart never posted its own release, something it would have certainly done if it started taking a new form of payment.
Eventually, Walmart confirmed to CNBC that the press release was fake, which was pretty obvious based on the previously mentioned evidence.
How Did a Litecoin Hoax Change the Price?
A hoax like this can make a massive difference in the price of Litecoin because there’s no regulation on cryptocurrency.
Whether that’s good or bad is up for debate, but it is the wild west out there in terms of crypto, and a fake press release like this can easily alter the price without anyone being able to intervene.
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