Squid Game has been a very popular Netflix’s series recently. It has got so recognizable that some folks have created cryptocurrency called SquidCoin. It turned that this cryptocurrency is just a big fraud. When it was established this crypto was nearly 0$, but soon reached huge price. Why? Because of tremendous hype that social media and influencers had created. Also, many mainstream information platforms had trumpeted this, such as Business Insider, Yahoo News and CNBC.
SquidCoin has lost all value in just 5 minutes
It’s insane how fast SquidCoin has gained value. We could observe nearly 83000% increase in just a few days. Developers got over 3 millions of dollars in their pocket. So, they decided to make very common move in crypto world, “rug pull”.
“It happens when the creators of the crypto quickly cash out their coins for real money, draining the liquidity pool from the exchange.”- says Matt Novak, journalist of Gizmodo.
Many experienced crypto investors are very vigilant about those new cryptos based on mainstream products (Dodge coin, Disney+), moreover those who invested their funds in this coin would never be able to reclaim this money. Great example of investor who has been scammed is a citizen of Shanghai in China. He has invested all his savings- over 28000$ in SquidCoin, now he tries to engage CIA and FBI into investigation. It is horrible because he can’t afford to provide for his family. There are more cases of investors that have put all their money into this fraud.
So how can we avoid situations like this?
Firstly:
You must have knowledge how does the crypto world work, it is compared to “Wild West”, there are no rules. Understanding those crucial conditions of this environment help us not to lose our money. Our example investor from Shanghai has made this basic mistake.
Secondly:
Don’t invest all your money, it is said that your investment resources can’t be your only source of keep. If you lose all invested money, you can still exist at the same standard of living as before.
Thirdly:
If you want to invest some money you have to do good research, if nan of the creators has a LinkedIn account, then you should stop even thinking of investing money into this business. If the creators are not scammers, then you will see their accounts at social media platforms. When you see grammar mistakes at website during research you should stop even thinking of putting money into this. It means that developers were making the website in a hurry and didn’t pay attention to details.
To summarize, SquidCoin is a scam that was based on huge hype created by Korean series. Scammers had made their own cryptocurrency in purpose to rob investors. Also, our social media and news platforms have made big rumor about this crypto and created a snowball that hit the investors. In my opinion you should pay more attention when we want to invest your money. Moreover, I think that the fault is on the side of the mass media.
Sources:
https://squidcoin.cash
https://gizmodo.com/squid-game-cryptocurrency-scammers-make-off-with-2-1-m-1847972824
https://www.cnbc.com/2021/11/02/squid-game-token-cost-one-investor-28000-after-coin-plunged.html
Unfortunately, occurrences like this are not even rare in the crypto world. It deters individuals from beginning to invest in projects from fear of this happening. Although it is nearly impossible for rug pulls to happen for legitimate projects. Because these coins are owned by multiple parties rather than the majority of the supply held by the developers alone. This is one of the clear signs of a potentially corrupt cryptocurrency as you should never see the majority in the hands of one party, and the same goes for the stock market.