In cryptocurrency, rug pulls happen when the creator of a project runs off with investor money, sending the coin on a steep plunge to $0. It’s called a rug pull because investors had their dream of making money pulled out from under them. Unfortunately, slimy fraudsters like to use cryptocurrency projects to scam because it is difficult for authorities to track them. Now they’ve resorted to using the likeness of a hit Netflix series as a tool for their crimes.
Behold $SQUID — a cryptocurrency created based on the Korean Netflix Series Squid Game. Major news outlets were reporting $SQUID skyrocketed over 230,000% in the past week, grabbing the attention of investors looking for the next $SHIB. $SHIB has also skyrocketed recently, surpassing Dogecoin USD (#dogeusd) to become the 9th largest cryptocurrency by market capitalization. Investors saw $SQUID booming and decided to take a chance on the currency. One important note, investors could only buy $SQUID, not sell it.
On Monday, $SQUID plunged to $0 — some might call this a rug pull. The fraudsters responsible for the scam haven’t yet been identified, and they got away with roughly $3.8 million in stolen funds from investors. Unfortunately, investors weren’t aware of the numerous red flags. Everything about $SQUID screamed, “I’m a scam!”
The scam coin was only just launched last week. It was on a 3-week-old website filled with grammatical errors. Their Twitter account made it impossible for anyone to reply, seeking to avoid public criticism. And of course, you couldn’t even sell the coin. Many investors might have avoided $SQUID if they had known of these red flags.
If you’re going to buy cryptocurrency, make sure you can sell it. Your cryptocurrency is only worth what someone is willing to pay for it.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.