One of the unfortunate truths about a cryptocurrency bull market is that the market is good for everybody, scammers are no exception to this rule and the Squid Game Token saga – which may very wel be the most pubicised of this year – serves as proof of this
As people become more excited about the possibility to make astronomical profits, the cycle of greed blinds the to the equal possibility of their investment sinking into an abys of valueless decimals shown on their screens – a reality that exists in with every asset class you can invest in.
Whe unfortunate investors fell victim to the now infamous SquidGame Token – a scamcoin that shamelessly rode the coattails of the popular South Korean series by copying its name, the only ones who saw any real gains where the scammers behind the subterfuge.
Decpite having made away with roughly $3,4 million – which is by no means an insignificant sum, the SquidGame Token Rug-pull is not the biggest cryptoscam to have ripped off investors this year. However, the brazen use of them of one the most popular shows on Netflix was always going to draw a lot attention – that’s probably why the scammers did it.
The immoral developers behind this sham marketed it as a token that would function in the burgeoning segment of play-to-earn gaming – titles like Axie Infinity and Decentraland fall into this category, a nother aspect that the scammers derived directly from the hit series.
This strategy worked like a charm, furled by a flood of money from “naïve retail investors” as per Eswar Parsad – a Cornell University told the BBC, the Squid Game inspired scamcoin took just under a week to soar more than 70 000% in a hasty climb from $0.01 to a high of roughly $2,860.
However, the euphoric feelings that come with watching your money grow would be just as be just as short-lived as the price rises they stemmed from. The lie began unraveling when many investors reported of being unable to move their funds, and as the alarm bells rang, CoinMarket Cap published a notice to its users that only corroborated their fears.
And a cofounder of CoinGecko, Bobby Ong, told a notable news media outlet – “The scam has completed its cycle, and the price has just dropped significantly,” . That “significantly” was a bit of an understatement, it took only a few minutes for the scamcoin’s value to drop back down below the dollar mark.
The Squid Game token debacle serves as a reminder to those who have been in the crypto currency market for some time and a lesson to those who are just getting started, in this market, stay vigilant and do your own research – what goes up must come down.
Ups and downs are a normal part of how markets move, however, the one thing that nobody wants is to get caught in an asset that is destined to dip perpetually because the creators went for the door.