He lost all of his savings by betting on Squid Game’s virtual currency

He lost all of his savings by betting on Squid Game‘s virtual currency

When Bernard heard about a virtual currency that followed the “squid game” phenomenon, he immediately googled whether it was legal.

He read only a few headlines, not the entire article – many warn against the SQUID-Coin project. So he decided to invest all of his savings ($ 28,000) in SQUID. On Monday (November 2nd) the token peaked at over 2,860 USDbefore collapsing to near zero within minutes, according to CoinMarketCap.

“The reason I rushed to buy SQUID coins is because Squid Game is very, very popular and this movie-based virtual currency will definitely be popular,” said Bernard, who now lives in Shanghai. “This is a tragedy. I don’t know how to get what I lost back.”

This person said he was the breadwinner for the family and was currently concerned about how to make a living.

Transaction records on BscScan show the anonymous developer of the SQUID coin at least 3.4. has collected Million dollars from investors. This ecosystem is full of signs of rug pull scam, in which a developer suddenly gives up on a project and steals investors’ money by exchanging virtual currency for real money.

“The developers of Squid Game do not want to continue the project because we are extremely tired of the scams and are under stress,” posted the developers of the SQUID coin on the Telegram channel with more than 89,000 members.

The project’s whitepaper and website all disappeared after the virtual currency crashed to near zero, although copies of the whitepaper are still available online. Twitter has temporarily restricted the project’s account due to “suspicious activity”. The founders of this virtual currency didn’t respond to questions from CNBC.

Bernard said he contacted the FBI and the SEC to report his investment. He also contacted the development team behind the SQUID-Coin and CoinMarketCap – the platform that lists this virtual currency on its website. Both “however refused to take responsibility for Bernard’s losses”.

Bernard said he has a lot of experience in virtual currency and computing. After the investment contract failed, Mr Bernard blamed the media.

In fact, it wasn’t just Mr. Bernard who suffered losses. Many other investors have also posted on Twitter that puffing up the memecoins is nothing more than promoting them implicitly.

“Everyone is in a rush when it comes to investing in virtual currencies, sometimes feeling like they are in a state of FOMO (fear of missing out on momentum),” said Benard. The feeling of FOMO can often be seen in crypto traders investing in early-stage Bitcoin alternatives with a desire to get rich quick.

Bet on the possibility of some cryptocurrencies appreciating

Saurabh Dubey has been interested in cryptocurrencies since 2016. He currently works for an auditing company in the USA and in his free time he deals with new cryptocurrencies.

Dubey will check the newly listed cryptocurrencies on CoinMarketCap and CoinGecko every day in the early afternoon and try to determine price trends using charts. I usually only pour about 100 USD for potential virtual currencies based on initial price movements.

“Some cryptocurrencies have the potential to rise steeply,” he said.

Dubey used the profit of a memecoin to win 250. to invest USD in the SQUID.

“I think I’ll use the winnings to bet on SQUID,” said Dubey. Back then, the price of the SQUID only fluctuated around 4 cents before the media reported on the coin.

Dubey said he is investing in SQUID because it ranks 2nd on CoinMarketCap’s most recently listed coins.

“I decided on SQUID because the coin already has a decent volume and has grown a bit. If you look at the diagram, you’ll see that it looks a lot like the early stages of SafeMoon, ”said Dubey.

He also notes that his investments are based on hunch rather than other factors.

However, Dubey later noticed some warning signs on the SQUID coin. “The biggest problem is that SQUID never goes down. Every cryptocurrency needs to have at least one drop, it’s not that they go up for five days in a row, “Dubey said.

Another problem is the extent of the price increases. “When SQUID reached 1 USD, I think an increase of 20 times makes sense. If the price of this coin is 10. achieved USD, I started to see that something was wrong. Most derivatives are unlikely to reach this level, “Dubey said.

There is also another warning sign. Dubey couldn’t find SQUID’s “father” on LinkedIn. Not to mention the coin’s whitepaper and website are full of grammatical and spelling errors.

In the end, Dubey took little risk, but investors like Bernard lost all of their savings.

Bernard tries to contact US authorities. He said he could not go to the local police because “cryptocurrency trading is not legal in China”.

Vu Hao (according to CNBC)