The Squid Recreation token swung into the crypto sphere like a wrecking ball and took 1000’s of traders on a dizzying experience earlier than vanishing and leaving the complete business shocked.
To make sense of what occurred, crypto researcher Max Maher confirmed traders all of the pink flags that they had missed.
Pink gentle, inexperienced gentle
Within the age of Shiba Inu’s meteoric rise and the success of play-to-earn video games like Axie Infinity, the Netflix-show impressed Squid Recreation token [SQUID] initially regarded like simply one other quirky contender. In the end, many traders lived by their worst nightmares after a rug pull left them to take care of staggering losses.
Maher summed up the harm and claimed,
“…it’s greater than clear at this level that they [developers] simply deserted ship with hundreds of thousands of {dollars}, which means at the least 36,000 individuals fell sufferer to this rip-off. So how a lot cash did the scammers make? Effectively, we don’t know the precise numbers. We do know that they made away with at the least a number of million {dollars}.”
Moreover, he criticized how mainstream media information corporations just like the BBC coated SQUID’s stunning rally and known as the sport “play-to-earn.”
Nonetheless, the BBC article in query did level out CoinMarketCap’s warning in regards to the token, and the way in which individuals have been unable to money out.
Supply: BBC
Pink flags you missed
Maher listed some warning indicators that he felt ought to have advised traders to again off rapidly. These included the very younger age of the Squid Recreation web site, the poor web site design, grammatical errors within the white paper, little proof of game-play, restrictions on promoting the SQUID token, and restricted communication on social media channels.
Supply: Lookup ICANN
Maher additionally claimed he discovered little or no respectable details about the builders. What’s extra, he advised their pictures may need been generated by AI.
He warned,
“…any respectable undertaking wouldn’t deliberately prohibit the promoting of a token. Easy as that. In case you’re not 100% certain you’ll be able to promote, don’t purchase.”
Concern the FOMO
It’s essential to notice that as of press time, BscScan had categorised Squid Recreation as a heist.
Supply: BscScan
For the reason that SQUID token was primarily based on the Binance Sensible Chain, Binance CEO Changpeng Zhao printed an announcement and likewise shared some funding recommendation.
Don’t FOMO, please.
— CZ Binance (@cz_binance) November 4, 2021
For his half, Maher stated,
“So once more, at all times do your personal analysis, even should you’re feeling that FOMO creeping up, since you’d relatively miss out on a 5% acquire than threat dropping 100% of your funding.”
Nonetheless, the drama may need a second season. Journalist Colin Wu implied that Chinese language crypto customers have been additionally feeling some FOMO associated to the sport.
Squid’s FOMO sentiment is spreading within the Chinese language neighborhood. Their slogan is: solely 100 U, 100X the advantages. Individuals stated that is the chief of rugpull idea. pic.twitter.com/fWJHBuT8ql
— Wu Blockchain (@WuBlockchain) November 6, 2021
At press time, SQUID’s value had spiked 744.10% in 24 hours to succeed in $0.5636. At its highest, the token was value round $2,860.
