Fraudulent crypto press releases seem to be a new trend in the space, much to the detriment of the cryptos themselves and the bulls who want to see some legitimate progress in driving the ubiquity of digital currency. A second major fake press release saw a pump in the value of Bitcoin Cash (CCC:BCH-USD) and is hindering an otherwise solid week for grocery chain Kroger (NYSE:KR). So what happened with this Kroger Bitcoin Cash alert, and how did it fool most everybody this morning?
Cryptocurrency is, just as every other burgeoning digital industry, rife with people looking to take advantage of others. These actors take many shapes, be it a phishing scam, a token rug pull or a fake initial coin offering (ICO). Recently, an even more brazen type of crypto scam is taking place as people make fake press releases announcing bullish crypto news. Investors are falling for a second major scam press release this autumn in the form of the BCH news. Here’s everything you need to know about it.
Kroger Bitcoin Cash Alert Turns Out to Be Crypto Scam
- The fraudulent release this morning pretends to present a collaborative partnership between grocery chain Kroger and Bitcoin Cash.
- It is falsely announcing that Kroger grocery stores will be accepting Bitcoin Cash this holiday season.
- The release was published both on the Kroger website and through typically reputable PR site PR Newswire. It has since been removed from both sites.
- This news doesn’t seem out of place for Kroger, given its busy week of major announcements. Early in the week, it announced its plan to streamline the grocery-delivery process with robots. Furthermore, it inked a deal with Bed Bath & Beyond (NASDAQ:BBBY) to carry Bed Bath & Beyond home and baby products on its website. Given the tech-forwardness of the first announcement, and the large scope of the second, the press release wouldn’t really seem out of place.
- Crypto bulls are looking to see digital currency adopted as a mode of exchange for commodities. Thus, the news obviously stirred up a lot of optimism.
- The Kroger Bitcoin Cash alert did see positive momentum for KR stock in pre-market trading. It also saw a sizable spike in Bitcoin Cash prices. Indeed, BCH spiked in value by $22 before crashing into the red upon the release being exposed as fake.
- Of course, outlets looking to break this news leapt on the press release and spread the misinformation further.
- Just recently, Kroger spokespeople dispelled the rumors, calling the release fake and saying it has no intent to accept BCH.
- Adding more frustration to crypto bulls is the fact that this isn’t the first time this has happened. In September, a similar press release scam saw a false announcement that Walmart (NYSE:WMT) would begin accepting Litecoin (CCC:LTC-USD). That announcement saw a similar pump and crash in LTC prices.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.