Cryptocurrency scams have become popular, taking advantage of the ignorance and greed of many.
The cryptocurrency initially became popular on social networks in the last weeks of October and would be used, according to its creators, as currency in an online game based on the show. Photo: YT-Netflix
Juan Manuel Londoño
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Leer en español: "Squid Game" y otras estafas con criptomonedas
Almost two million dollars lost investors in the SQUID coin, based on the popular Netflix show Squid Game. How did this happen?
Let's go back a bit in time. The cryptocurrency initially became popular on social networks in the last weeks of October and would be used, according to its creators, as currency in an online game based on the show. His suspiciously fast ascent was surprising. As of November 1, each SQUID token was worth $ 38.
Here many investors became suspicious. They could not sell these coins, which set off the alarms of several. However, thanks in part to coverage from unsuspecting media like the BBC, the coin soared in value that same day, growing from $ 628 to $ 2,861.80 in just ten minutes.
But soon after, the curtain fell. In less than 5 minutes later, the SQUID value plummeted to practically nothing. The creators of Squid Game took all the money out of the currency's liquidity pool, making it worthless. Cryptocurrency investors call this type of scam a "carpet toss" and it is surprisingly common.
It has already happened a couple of times. Let's see the most famous so you know how to avoid investing in one of these scams.
Another famous “carpet pull” happened with the WhaleFarm Token. This coin was launched with an anonymous team in early June 2021. It promised an annual percentage return of 7,217,848%, something that should set off the alarms of any investor.
However, the WHALEFARM token was worth $ 200 before the inevitable happened. On June 30, its value plummeted and the creators of this scam got away with it, fetching almost $ 2.3 million.
This project disappeared with almost 7 million dollars from investors. It was a performance aggregator, a platform that supposedly sought to help cryptocurrency holders earn rewards for their portfolio securities.
The funny thing is that LunaYield launched on SolPAD, a legit Solana multi-chain fundraising platform. In other words, there was no reason for investors to be suspicious of LunaYield.
In August of this year, the creators of LunaYield disappeared with $ 6.7 million in various tokens.
Anyone can fall for these cryptocurrency scams. The important thing is to keep in mind the golden rule "If something seems too good to be true, it probably is". Don't get carried away with the fear of missing the next big coin. If these types of scams continue, they will not only endanger people's money but the fundamental basis of the crypto market: non-regulation.