Even though bitcoin was invented in 2008 and has been embraced by investors, the cryptocurrency market can only be described as immature. This might be a multidecade story in the making, but even crypto’s biggest fans should take heed of what happened this week.
On Sept. 13, a number of news outlets reported that Walmart Inc. had entered into a “partnership” with litecoin to accept payments made using that cryptocurrency, citing a news release. That turned out to be false.
Litecoin rose in value by as much as 33% that day before ending with a 3% gain.
The event is a reminder to think before trading on what you read. Two red flags here: the notion of a “partnership” with a cryptocurrency as well as the idea that a company as large as Walmart would make such a bold move with a virtual currency that tends to fly under the radar (most attention and trading volume is focused on bitcoin and ether).
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