DUBAICOIN saw its value shoot up 1,000 per cent in just 24 hours despite the price of other cryptocurrencies continuing to fall.
The city’s government has denied any official link, with the authority even claiming it is part of an “elaborate scam”.
A statement tweeted by the media office of Dubai’s government said: “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.”
The dramatic price rise came as the value of Bitcoin and other cryptocurrencies such as Ethereum continue to struggle.