The Squid Sport token swung into the crypto sphere like a wrecking ball and took 1000’s of buyers on a dizzying experience earlier than vanishing and leaving the whole trade shocked.
To make sense of what occurred, crypto researcher Max Maher showed buyers all of the crimson flags that they had missed.
Crimson mild, inexperienced mild
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 Sport token [SQUID] initially appeared like simply one other quirky contender. In the end, many buyers lived by way of their worst nightmares after a rug pull left them to cope with staggering losses.
Maher summed up the injury and claimed,
“…it’s greater than clear at this level that they [developers] simply deserted ship with hundreds of thousands of {dollars}, which means no less than 36,000 folks 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 no less than a number of million {dollars}.”
Moreover, he criticized how mainstream media information firms just like the BBC lined SQUID’s shocking rally and referred to as the sport “play-to-earn.”
Nevertheless, the BBC article in query did point out CoinMarketCap’s warning concerning the token, and the way in which folks have been unable to money out.
Supply: BBC
Crimson flags you missed
Maher listed some warning indicators that he felt ought to have advised buyers to again off shortly. These included the very younger age of the Squid Sport 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 reputable details about the builders. What’s extra, he suggested their pictures may need been generated by AI.
He warned,
“…any reputable mission wouldn’t deliberately limit the promoting of a token. Easy as that. In the event you’re not 100% positive you may promote, don’t purchase.”
Concern the FOMO
It’s necessary to notice that as of press time, BscScan had categorized Squid Sport as a heist.
Supply: BscScan
Because the SQUID token was based mostly on the Binance Good Chain, Binance CEO Changpeng Zhao published a statement and in addition shared some funding recommendation.
Don’t FOMO, please. 🙏
— CZ 🔶 Binance (@cz_binance) November 4, 2021
For his half, Maher said,
“So once more, all the time do your individual analysis, even when you’re feeling that FOMO creeping up, since you’d fairly miss out on a 5% acquire than danger dropping 100% of your funding.”
Nevertheless, 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 mentioned that is the chief of rugpull idea. pic.twitter.com/fWJHBuT8ql
— Wu Blockchain (@WuBlockchain) November 6, 2021
At press time, SQUID’s price had spiked 744.10% in 24 hours to achieve $0.5636. At its highest, the token was worth around $2,860.
