Squid Game (SQUID) Token stiger med 13,000 XNUMX % men förblir ohandelbart

Datum: 07.01.2024

The infamous digital token scam inspired by the Netflix series "Squid Game" has been making headlines. Here’s a recap of the events: A scammer or group of fraudsters created a cryptocurrency named Squid Game ($SQUID) to capitalize on the show’s massive popularity since its debut on September 17, 2021. Leveraging the attention-grabbing name, they lured traders, causing the token’s value to surge by over 13,000%. At its peak value of approximately $2,861, the scammers withdrew about $3.38 million. This caused the token’s value to crash to less than a third of a cent, leaving investors at a loss. Gizmodo, the first to report on $SQUID’s collapse, warned that it was likely a rug pull scam—a scheme where creators restrict selling to drain investors’ funds.

Importantly, $SQUID had no official connection to Netflix or the “Squid Game” show. The scammers exploited the brand without permission. Below is a detailed analysis of how this scam unfolded and the warning signs traders missed.

Innehåll dölja

1 What Happened with the $SQUID Cryptocurrency?

2 Warning Signs that $SQUID Was a Scam Before Its Collapse

3 Hur du skyddar dig från kryptobedrägerier

4 Avslutande tankar

What Happened with the $SQUID Cryptocurrency?

Launched in October 2021, $SQUID quickly gained traction through Twitter and its website (squidgame.cash). Initially priced at one penny per token, its value skyrocketed within days, reaching $38 per coin on Pancakeswap. The token then surged to an all-time high of $2,861 before plummeting to 0.0007 cents.

BscScan reported that over 40,000 investors still held $SQUID after its crash. Many mistakenly believed the cryptocurrency was an official Netflix product and expected significant returns. However, investors were barred from selling their tokens, leaving them with worthless holdings.

BscScan traced two cryptocurrency wallets linked to the scam, revealing that $3.38 million in $SQUID tokens were converted to Binance Coin (BNB) through Tornado Cash, a coin mixer used to obscure transaction trails.

Warning Signs that $SQUID Was a Scam Before Its Collapse

Several red flags should have alerted investors to the scam:

The developers imposed a 2:1 buyer-to-seller ratio before transactions could be approved, claiming it was an “anti-dump strategy.” However, this mechanism restricted selling rather than preventing crashes.
Users had to purchase Marbles, a secondary token, to sell their $SQUID holdings. Marbles were only obtainable by participating in expensive online games, with entry fees escalating to thousands of tokens.
The token’s website and social media accounts were riddled with grammatical errors and spelling mistakes, indicating a lack of professionalism. These channels are now defunct.

Hur du skyddar dig från kryptobedrägerier

To safeguard against crypto scams, follow these steps:

Consult approved financial experts before investing in cryptocurrencies.
Only invest through verified and accredited platforms.
Stick to established cryptocurrencies like Bitcoin, Ethereum, and Litecoin, but remain aware of their inherent volatility.
Avoid tokens tied to pop culture references, as these are often used to exploit trends without offering genuine value.

Avslutande tankar

The “Squid Game” crypto scam highlights the risks of unregulated digital tokens. The creators exploited the decentralized nature of blockchain technology, stealing over $3 million. The case underscores the need for regulatory oversight in the cryptocurrency industry.

Decentralized platforms like Pancakeswap allow the immediate listing of tokens without vetting. This lack of oversight enables bad actors to scam unsuspecting investors. As such, thorough research and due diligence are crucial when investing in new cryptocurrencies.

By adhering to the protective measures outlined above, traders and investors can reduce their exposure to scams and navigate the volatile world of digital currencies with greater confidence.

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