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Bitcoin falls underneath $40,000 as UAE issues trick alert over DubaiCoin

Significant digital forms of money dove into the red on Friday as the crypto market proceeds with its instability since a week ago's monstrous auction

The fall comes after Dubai gave a trick cautioning to financial backers, after a cryptographic money called DubaiCoin created a ruckus subsequent to asserting it was "the authority advanced cash of Dubai

The crypto surged 1000% in the last 24 hours, after claiming it was powered by a blockchain developed in the region called ArabianChain

Both Dubai's government and ArabianChain have denied any involvement, and the government debunked the claims, saying DubaiCoin was "never approved" calling it an elaborate "phishing scam

A fake press release, which has now been unpublished, was issued in the name of Arabian Chain Technology, which is considered to be a legit blockchain company based in Dubai

Major listing platforms, including CoinMarketCap have since removed the crypto from their pages

Bitcoin (BTC-USD) fell below $40,000 (£28,195), falling as much as 11% to $35,522 on Friday afternoon

Ethereum (ETH-USD) — the world's second most popular crypto — crashed over 12% to $2.473, while dogecoin (DOGE) slumped 9.8% to $0.31 during the session

Dubai Coin cryptocurrency was never approved by any official authority

The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors

Meanwhile, influential fund manager Cathie Wood — the founder of Ark Investment Management — also added more pressure after she blamed the crypto crash on the "ESG movement

Speaking to Coindesk’s Consensus 2021 conference, Wood said ESG (environmental, social and governance) concerns over Bitcoin's energy use, exacerbated by Tesla (TSLA) boss Elon Musk, had put a lot of institutional buying "on pause

Despite that, Wood provided a message of reassurance, saying the top cryptocurrency, bitcoin, is "already on its way and it’ll be impossible to shut it down

The environmental impact of cryptos has been a source of much concern lately and North American bitcoin miners are working to bring transparency to their energy consumption, through the Bitcoin Mining Council

Prior to that, Musk sparked a sell-off after saying the electric carmaker was abandoning plans to accept bitcoin as payment due to environmental concerns