Litecoin - Walmart: Bubble pop

Emotionalism, immediacy and FOMO (Fear Of Missing Out) are omnipresent. The world of crypto-currencies is no exception, evidenced by the recent spread of a fake news that retail behemoth Walmart would accept Litecoin cryptocurrency payments. This took over the cryptosphere in an instant and cause the Litecoin price to soar, before crashing down after Walmart popped the bubble.

The fake news issued by a fraudulent user account of GlobeNewsWire was quickly relayed by reputable media such as Bloomberg, Reuters and the famous American channel CNBC. All of them backed down after Walmart denied the fake news. In the space of a few minutes, the Litecoin price rose from $175 to $240, i.e. an increase of more than 35%, before returning to its pre-rise price, after Walmart definitively put an end to speculations.

This umpteenth piece of fake news in the cryptocurrency world illustrates how easy it is to spread misleading information on a global scale. Due to the volatility on digital assets, the spread of fake news represents a boon for hackers in the industry who profit from an artificial rise in a crypto. And this may only be the start...

 

Drawing : Amandine Victor