- Right before the collapse, the coin was valued at above US$2,800. The next minute, it was almost zero
- This latest scam is a reminder to crypto investors to research tokens before putting money into it
- The developers could’ve possibly made more money legitimately with this idea than the supposed two million they snatched from the rug pull
Crypto scams are by no means a new thing. Unfortunately, a lot of digital currencies turn out to be nothing more than money grabbers before the anonymous developers disappear into the night either to take their investors’ money to retire on a beach somewhere in Thailand or more disturbingly to set up yet another crypto scam. Such is the unregulated nature of the crypto space.
Squid Game – the latest crypto scam – hit a little different though. Firstly, the idea of an altcoin based on Squid Game, the popular Netflix survival drama, seemed somewhat inevitable because, on paper, it sounds like such a good idea. An NFT game inspired by the playground games with a deadly twist, presented in the show, sounds like a brilliant idea. The funny thing is the developers could’ve possibly made more money legitimately with this idea than the supposed two million they snatched from the rug pull. Regardless of how much money these shifty “developers” pulled in, the Squid Game token was like honey to a bee or rather a fly to something else.
Squid Scam: The Token That Took Off with Over US$2 Million of Investors’ Money
One of the major red flags associated with the Squid Game crypto was that it had no association to Netflix or the show's creators, which was needed to operate as a revenue-making business based on it.
The second red flag, which began to wave almost immediately following its release, was reports that buyers of the token had been unable to sell it on the popular crypto exchange PancakeSwap.
The coin’s developers defended this, saying there was a fail-safe built into the algorithm preventing users from dumping the coin before the actual game was set for release. Of course, now that will never happen.
Right before the collapse, the coin was valued at above US$2,800. The next minute, it was almost zero. Since then, the token’s website and social accounts have disappeared, along with a white paper describing Squid, which is never a good sign that investors will ever see their money again.
Warning to Crypto Investors
This latest scam is a reminder to crypto investors to research tokens before putting money into them. Investors should be sceptical by default setting, even more so when a coin is based on a cultural phenomenon. And even more so still when that coin pulls in absurd amounts of money in its first few days on the market.