Squid Game Token Scam collapses

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Cryptocurrencies – FinanceBrokerage

Squid Game Token Scam collapses

In the current investment climate for cryptocurrencies, there seems to be a tendency to blindly follow online trends. It started with Dogecoin, which experienced a massive explosion in value in April and peaked in May. Even now, after a significant drop, Dogecoin price is 4-5 times what it was before the first jump. That seems to have reminded investors that there is a lot of money to be made in investing because of the hype. This is nothing new in the investment world; However, it has sparked some madness in the cryptocurrency space.

Something similar has happened more recently with another dog-based coin called the Shiba Inu (SHIB). About a week ago it soared and made the owners more than happy. Such occurrences have encouraged crypto investors to take a gambling-like approach when buying Shitcoin. This select group of investors aims to ride the wave of excitement over coins that have very little actual value or application. They depend on internet popularity, meme potential, virality, and target popular coins.

As you can imagine, this opens the door for scammers. The cryptosphere is already prone to fraud, with a high degree of decentralization leading to anonymity. However, they work best when investors buy coins without thinking too much. One such scam saw an opportunity in the popular Netflix series Squid Game and made a coin of the same name.

The coin quickly caught attention, rising from around $ 30 to $ 2,856 per SQUID overnight. That sounds like an investor’s dream, and the owners must have been delighted with the growth. There was a catch, however.

An uncomfortable detail with the SQUID token was that you had no option to withdraw.

Fraud

Correctly; There was no way to raise money from your squid game token. Technically, there was a way to withdraw some funds by converting them to another shitcoin. After that, you could cash out, but the fees associated with the transaction meant you would still lose all of your money. As such, the result was the same as if you were simply holding your SQUID.

And as everyone expected, there was a massive rug pull and the value of the coin plummeted to fractions of a cent. The creators and promoters ran away with the estimated $ 3.38 million dollars raised.

The creators advertised the token as a play-to-earn model. In theory, you could use the token in different games which would then reward you with more tokens. However, there have been characteristic signs of fraud, including poor spelling and grammar, in advertising businesses.

SQUID had devastating consequences for the people who held it. A Shanghai investor put his savings in the coin and lost everything. While it’s easy to refer to them and others who fell for the scam, it’s not entirely fair. The SQUID situation is the culmination of symptoms that have been brewing in the crypto community for some time. Hopefully, crypto investors will see the situation as a warning that hype-based investing is at least slowing down.

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