Squid token dropped to nearly $0 after peaking at $2.8K for the day!
The cryptocurrency SQUID, which was inspired by the Squid Game series, was revealed to be a scam. Due to a rise in the number of investors, the cryptocurrency soared from $38 to more than $2,800 in a matter of hours before plummeting to zero in a short amount of time. According to Engadget, the developers of SQUID vanished with $3.38 million. This article will tell you about the case of the SQUID scam and the general rules of how not to fall into a trap.
On October 20, SQUID announced a game in which SQUID tokens will be the game money, capitalizing on the enduring popularity of the Netflix series. The coin will be required as a charge to play the game. A portion of the money (10%) will go to the organizers, while the other 90% will go to the prize fund to reward the winner. Moreover, the cryptocurrency’s launching has nothing to do with the streaming platform. According to the fake cryptocurrency’s marketers, the game’s release date has been set for November, and the winners will be rewarded with SQUID tokens.
At the same time, the SQUID cryptocurrency’s circulation is subject to many major constraints. CoinMarketCap, a cryptocurrency exchange, has issued a statement on its Squid quotes page, stating that it has received multiple complaints from owners over the impossibility to sell this coin on the decentralized Pancake Swap exchange. The specific causes for the issues are unknown, but according to knowledge on future Squid Game online tournament rules, the event organizers have included procedures that significantly limit the free circulation of Squid coins.
From 2k to 0
Then, SQUID lost 100% of its value when its developers were able to withdraw $2.1 million in assets from those who purchased this fake digital coin. According to Gizmodo, the site where the tokens were sold has been withdrawn. According to CoinMarketCap, the cryptocurrency reached a high of $2861 before falling to $0. Simultaneously, Squid holders were unable to sell their currency.
In conclusion, the SquidGame.cash website, which was established a few weeks before the cryptocurrency scam’s introduction, was riddled with spelling and grammatical mistakes. The site was closed when the founders vanished, and the Twitter account was identified as suspicious. The cryptocurrency website CoinMarketCap alerted potential purchasers about probable fraud, advising them to exercise due diligence and prudence while trading, according to The Guardian. As one anonymous investor reports, he lost $5,000 in SQUID.
We will look at the primary indicators of scams and the steps you may take to avoid falling into scammers projects below:
- Advertising from dark sources with a questionable reputation.
- We know nothing about founders’ personalities.
- There is no clarification regarding what the product is behind the project.
It is worth emphasizing that, despite the nascent nature of the crypto industry, particularly when it comes to startups, this field is rather profitable. Finally, if major corporations have already invested in it, the corporate attorneys have most likely examined the project and determined it to be trustworthy.
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Valentina BEREZA, Team bit4you