The anthology of a fake. Litecoin’s price skyrockets by 36% in 20 minutes and goes back down.
On Monday, the web was discombobulated when reports emerged that Walmart, one of the largest retailers in the world, was allegedly about to start accepting Litecoin as payment. The news was shared by major media outlets such as CNBC and Reuters. Within 20 minutes, Litecoin’s price rose by 36%, from $175 to $238. This climb also positively impacted other cryptocurrencies.
The news, however, turned out to be fake, and LTCUSD returned to its usual level after 45 minutes. Such rollercoaster movements are sometimes called popcorn rallies: the trajectory resembles that of a corn kernel expanding, puffing up and shooting up,
but then hitting the cover and dropping back into the pile.
How did that happen?
The news was spread through a scam account on the GlobeNewswire press release mailing service.
Litecoin and Walmart have since officially debunked the news, while Intrado, GlobeNewswire’s owner, has rolled out additional user authentication steps to prevent such incidents in the future.
Novice investors should learn from this story and form their own opinions on the media and the impact they have on asset prices, and better understand the importance of managing risk and emotions.
We recommend using only trusted tools and strategies in your decision-making.