The Squid Game Token Scam That Investors Fell For Twice!

A new cryptocurrency based on a famous South Korean TV program, “Squid Game,” quickly rose in value. It launched on October 20th and grew by more than 23 million percent in a week. SQUID was supposed to be the token for the pay-to-earn game.

Unfortunately, the currency turned out to be a major fraud just weeks after its launch. The SQUID (Squid Game) cryptocurrency tumbled, leaving many investors stuck with worthless coins. There are six games on its website that are currently no longer working.

The Rug Pull Scam

Investors flocked to the new $SQUID cryptocurrency, sold as a “play-to-earn cryptocurrency.” However, just a few days from its launch, holders were not allowed to resell their tokens, a vice that crypto enthusiasts refer to as a “rug pull.”

When an ICO is live, a rug pull scam takes place when the promoter of a digital currency entices buyers and halts trading activity, then flees with the money raised through sales. Case and point, After gaining more than 310,000 percent in value, Squid’s market capitalization nosedived to zero after Twitter flagged its account.

The scammers made off with roughly $3.4 million in investments. After inflating the token’s value on social media, the developers exploited a bug in the code to steal money from a liquidity pool.

When social media crypto raised the alarm of funds flying out of the network, it was temporarily closed. The project’s website and social media accounts have vanished, as well as the White Paper detailing Squid. According to the reports, the owners of Squid Game coin sold all of their cash on a Sunday, bringing down the currency’s value to $0.

There Were Warning Signs

According to CoinMarketCap, a prominent cryptocurrency website, several forums had alerted investors about the suspicious activities of the Squid Game coin ecosystem. Also, some analysts and crypto publications raised concerns about the Squid tokens.

Over time, experts have advised investors to be wary of investing in “meme” cryptocurrencies based on cultural phenomena. Squid Game was a perfect sale that had become a global hit in this case. However, there were several apparent indications that the Squid Game cryptocurrency was fraudulent from the get-go, such as;

The coin’s white paper and website were rife with mistakes: Many errors in the marketing materials marked a calculated scam. Developers loaded the website and technical white paper with spelling and grammatical mistakes, as well as unfounded claims. That made the website, SquidGame.cash appears unprofessional.

Its founders were anonymous: This made it simple for them to flee with investors’ money. Also, the account’s creators were the only ones who could respond on its Twitter and Telegram accounts. Despite these apparent indications of fraud, the coin and its spectacular growth received high-scale media attention.

It wasn’t available on any major cryptocurrency exchanges: Investors could only buy the digital asset on a platform that doesn’t guarantee the transactions completed using it.

Absence of an option to sell: investors could only acquire the currency, not sell it, effectively compelling them to stay invested. There were no options to sell the coin, so investors could only buy it. As a result, regardless of how much the currency’s value rose, investors had to choose between a cash-out and hodling.

All of these red flags are comparable to those observed during phishing assaults. In these scams, impostors use the names of well-known companies and groups in fraudulent emails and websites, albeit in a clumsy manner. Errors such as these indicate that something fishy is going on.

How to Protect Yourself from Crypto Scams

As the popularity of cryptocurrencies rises, so does the number of scams targeting consumers. Here are some pointers to help you avoid being a victim of these scams:

  • Don’t fall for a phishing scam. Phishers will frequently attempt to obtain your login credentials or financial data by sending you phony emails or text messages to steal them. Be wary of any communications that request sensitive information, and never click on links or download attachments from unknown sources.
  • Don’t invest in cryptocurrencies you don’t understand. If you’re not familiar with the technology behind a specific cryptocurrency, it’s best to avoid it.
  • When purchasing cryptocurrencies, be cautious. Make sure you’re using only reputable and trusted websites to buy cryptocurrencies.
  • Use an accredited financial advisor for each investment you choose to make, and be sure they are competent with their expertise. Investing money you can afford to lose if the project goes sour is also a good idea.
  • Avoid investing in cryptocurrencies that need you to put money directly from one of your accounts rather than through a reputable and verified platform.
  • Finally, be wary of a cryptocurrency based on a popular culture reference such as films, jokes, and television series. It may be a hoax built around buzz rather than a genuine attempt to create a real cryptocurrency, such as the Squid Game scam.

Conclusion

Investors are always on the hunt for the next big thing. When they find it, they’re quick to jump on board and put their money on a new goldmine. That was what occurred with Squid Game Tokens. However, nobody wants to be a victim of a rug pull, so evaluate the risks before investing if a coin appears to have enormous potential.

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