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- 'Squid Game' Cryptocurrency Becomes A Trap for Investors
- Scandals in the world of cryptocurrencies
- Scams & Theft
Reading time: ~4 minutes
June 2016: The audience goes wild when Ruja Ignatova takes the stage. The pop song “Girl on Fire” booms out of the speakers during their run-in, and a stage fountain spits fire into the air to match. Colossal writing on the screen in the background complements the charged scenery: Onecoin. If you are interested in bitcoin trading, visit https://tradermate.software/ to acquire an utter guide to crypto trading.
Behind this name hides a cryptocurrency that Ignatova staged and with which she attracted thousands of investors within a few years. And it should not be just any cryptocurrency: The Onecoin will become the most important digital currency in the world, said Ignatova. The Bitcoin can pack up, so the message.
After some years, it is certain: The “Bitcoin Killer” is worthless. The alleged billion-dollar project Onecoin is the biggest scandal in the young history of cryptocurrencies. And Ignatova, who dubbed herself the “Bitch of Wall Street,” has gone into hiding. The damage amounts to about four billion dollars. In Germany alone, around 60,000 investors lost their money with it.
The hype surrounding cryptocurrencies also attracts many dubious business people. You benefit from the fact that Bitcoin and Co. are establishing themselves in the investment world – and more and more investors are looking for the next big miracle of returns. Fraudsters also hunt for users with fake websites or dubious marketing systems. Social networks and messenger services like Telegram make it easier than ever to recruit new members.
‘Squid Game’ Cryptocurrency Becomes A Trap for Investors
The biggest hit that the streaming service provider Netflix has produced so far is the South Korean thriller series “Squid Game.” Four weeks after its release, 111 million households have already seen the series. In “Squid Game,” 456 people contest each other. They are fighting for a high million dollar profit. The betrayal: whoever loses is killed.
The series hit from South Korea goes around the world. For Halloween, numerous spooky enthusiasts dressed up in red jumpsuits and hid their faces behind black masks, like the armed guards in the series. Education ministries and teachers warn schoolchildren not to play children’s games from “Squid Game” in schoolyards.
The hype surrounding the hit series also reached the crypto world. The pre-sale for the token Squid started on October 20th. The unknown initiators announced that they wanted to hold virtual competitions like in the series – of course, not deadly ones, and investors could make money from the bets. Allegedly, all coins were sold within a second. The price growth was astronomical. In just under two weeks, the price rose from $0.01 to an all-time high of $2856. An incredible 28,559,900 percent increase in value. With this, Squid overshadowed the incredible price increases of other meme coins such as Dogecoin or Shiba Inu. Some investors saw the fun currency as an opportunity for quick riches. However, the rude awakening followed a total loss.
Scandals in the world of cryptocurrencies
In a flash, the value of the Squid coin fell almost to zero. According to Coinmarketcap, the course is currently trading at around $0.003. Investors are now learning that the websites and social media accounts for the “Squid Game” token are no longer working. People cannot sell the token on Pancakeswap – the only crypto exchange on which people could trade the digital currency.
The Squid initiators made off with the investors’ money. According to media reports, the damage amounts to around 3.4 million euros. According to critics, the procedure corresponds to the so-called “rug pull” maneuver: the creators of a coin exchange massive stocks for fiat money such as dollars, which ultimately causes the price to rush away.
There were early indications that the token was intended to be fraudulent. For example, the Squid coin could be bought but not sold. The price has risen so exorbitantly so quickly that the initiators did not see this as a problem but described it as an “innovative anti-dumping mechanism.” Only certain members could sell the coin. That was also in the white paper of the Squid token.
The reporting also contributed to the fact that more and more people acquired the token. Many media reported on the digital currency, which came onto the market in the slipstream of the series’ success. However, investors are now complaining that they were not sufficiently informed about the risks.
The chances for cheated investors to get their money back are slim. But unfortunately, the scams could be there forever in the world of crypto trading. Dodgy profiteers use the hype about Bitcoin and Co. or the hit series “Squid Game” to lure investors into their dubious projects.
Scams & Theft
Do you have your bitcoin wallet? Never give your seed phrase to someone else. Your seed phrase is the 12 or 24 English words you were given when creating the wallet, and it is like a password of sorts. If you give that to someone else, they can steal all your bitcoins. A bitcoin company or help desk will never ask you for your critical information, including your “seed phrase.” If so, you are probably dealing with scammers.
If you do not store your bitcoins in your wallet, but on a website, at an exchange, or in an account of a service provider, there are inherent risks. You give them to someone else, and only they can return them. Therefore, it stands or falls with the party’s reliability to whom you entrust them. In the case of scammers, you can lose everything. Note: even if it is not a scam, a service provider can be hacked or make mistakes that cause funds to be lost. As a result, bitcoin companies are regularly targeted.
Does someone promise to send you free cryptocurrency if you send a small amount first? This is a well-known form of scam that is common through social media and other channels. Scammers regularly use fake accounts that resemble the accounts of famous people. If you send something, you will not receive anything in return.
Is a company or other party asking you to pay an invoice in bitcoin? That is not common and is often a scam. They probably want payment via bitcoin; because you can’t get the money back after sending it. Does a seller on an online marketplace ask if you want to pay in bitcoin? Then realize the risk of fraud and ask yourself whether the counterparty can be trusted. There are scammers active who never make them heard after receiving the payment.
Thank you for reading!