BASSETERRE, St. Kitts, CMC – The St. Kitts-based Japanese Caribbean Central Financial institution (ECCB) has distanced itself from “any crypto token ventures and/or stablecoins on any public blockchains”.
Stablecoins try to create a cryptocurrency token with a secure value. Their stability is often achieved by pegging the token to an asset corresponding to gold or fiat. By being backed by extra conventional investments, the market has higher confidence of their value.
In an announcement, the ECCB, which serves as a central financial institution for Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, St. Kitts-Nevis, and Montserrat, stated it had been made conscious of a enterprise that’s presently being promoted as a stablecoin on the Solana blockchain “and fraudulently using the ECCB’s official brand in its on-line promotions.
“This illustration is fake, and the ECCB is working with the related authorities to cease fraudulent misuse of its identify and branding.”
The ECCB stated that it concluded its central financial institution digital forex (CBDC) pilot, DCash, in January 2024 and that whereas preliminary work is in progress to implement a business deployment styled DCash 2.0, “the ECCB doesn’t presently function a digital forex or stablecoin in any market.”
The ECCB stated that each one updates associated to DCash can be found on its and the DCash web sites. ”The ECCB advises individuals to be diligent and undertake cautious analysis earlier than taking part in on-line crypto token ventures, which are sometimes used as autos for ‘rug pull” and ‘pump and dump’ scams, leaving unsuspecting customers with heavy losses and nugatory cash.
A rug pull happens when creators/promoters of a crypto token enterprise trigger the worth of a crypto token to dramatically and artificially improve in a brief interval, thereby attracting new members into the scheme earlier than promoting all of their holdings of the token and inflicting the worth of those tokens to fall drastically.
A pump and dump could equally be coordinated by numerous holders of a low-value crypto token to draw new members to buy the crypto token, artificially and shortly inflating its worth earlier than promoting all of their holdings of the token, inflicting the worth of those tokens to fall drastically.
The ECCB stated that in each instances, customers left holding these crypto tokens face important losses with restricted technique of redress or restoration.
The financial institution is urging folks to “report any suspicious exercise or search clarification” from the ECCB if doubtful.
