Hey there guys, XanPharaoh here.
Welcome to the first in a series of blogs which I will call the ‘Pump and Dump Hall of Fame’. In this series I will discuss the most blatant and disgusting crypto scams to ever hit the blockchain. I can promise you that if you weren’t aware of any of these blatant scams, you are lucky and you should thank your lucky stars that you weren’t there for the inevitable crash. However, if you did fall victim to these scams, I am not here to make light of a terrible situation because many people lost a lot of money to it.
So, the following information does not constitute financial advice, I am simply a crypto enthusiast who wants to share a couple of events that occurred in the cryptocurrency community. Please do not base any financial decision on anything you read on this blog.
Since that’s out of the way, let’s get to it. The first project that I will be discussing in this series is the Squid Game token.
Now as you guys might know, this project was inspired by the South Korean Netflix series Squid Game which took social media by storm. At some point everybody and their mom was talking about it. I can understand how some people thought that the hype would never end. At that time, it was simply just the talk of the town.
The token was marketed as a play-to-earn token, with a white paper that made every holder feel like they were holding onto something extremely valuable but sounded very much like your classic Ponzi scheme by saying things like, the more people join, the larger the reward.
Any red flags yet?? No? Wait, there’s more.
This Squid Game token had absolutely no affiliation to Squid Game the famous Netflix series. Before its was a major project there was some skepticism about the project being ‘too good to be true’ and rightfully so. I mean it was infringing on trademarks, so what was the likelihood that it would be anything more than glorified rug pull?
Some people who bought into the token on the 28th of October saw the value of their holdings double and even triple in only a couple of hours and they felt overjoyed with its performance. Then on the very next day #$Squid was plagued with posts about holders who were unable to sell their holdings. They were told that in order to sell off their holdings they would need to buy marbles on the pay-to-play platform created by the founders.
This project was on everybody’s lips and as such attracted the attention of major media outlets like BBC and CNBC. I mean how could it now, some people were being made paper millionaires for taking a risk in this project. An example of this could be a man named Luke Hatford who bought US$300 worth of $Squid and a short space of time this investment was worth about just under US$1 000 000 but the whole thing was a scam and Hatford was just one of the many victims.
When I looked at the website of the token, I could clearly tell that something wasn’t right. I mean how in tarnation can there be so many misspellings and grammatical errors. Even if this project was legit, I probably still wouldn’t invest money with people who don’t pay attention to the finer detail.
You guys know what I found extremely comedic? I can’t even believe that they could claim to be affiliated to Netflix and Microsoft. Then shortly after, Netflix expressly claimed that there was no affiliation between the show and the token. To this day, Microsoft still made no public statement in relation to its affiliation with the cryptocurrency project.
The head of content at CoinMarketCap, Molly Zuckerman claimed that the project was a textbook example of a classic rugpull. It came with the anti-dumping tech and everything and the founders claimed that the only way for holders to sell their tokens in the market would be if the was a buyer to seller ratio of 2:1. I mean I could smell the BS from a mile away, it sounded more like a way of making the holders hold the bag while the anonymous founders sold off and took all the valuable crypto.
So, even though this was a clear scam, not everybody was able to catch on so soon. Furthermore, not many people were able to do their due diligence before investing and was totally caught in the FOMO and as a result, some of them lost a substantial sum of money.
I honestly feel sympathetic toward the victims of this scam. I have no respect for the scammers who so blatantly lie and misguide investors into pumping money into a stock which they know only exists for them to profit.
I hope that this serves as an important lesson to crypto enthusiasts. I know sometimes the FOMO is too tempting but please be diligent. Also, investing is already really risky and there is really no guarantees.
PLEASE DO NOT INVEST MONEY YOU ARE NOT WILLING TO LOSE, BECAUSE THE CHANCES IS THAT YOU MIGHT LOSE IT ALL!
So, if you made it all the way to the end of the post, thank you for reading. I hope that you found it informative.
If you liked the article, I will discuss another crypto rugpull sometime in next week, so keep an eye out for that.
Thank you guys for all the support. I APPRECIATE IT ALL.