Token Squid Game invaded crypto space like a “fireball” and took thousands of investors on a roller coaster ride before disappearing and causing an uproar in the entire industry.

To understand what happened, the researcher Max Maher quote Give investors all the red flags they missed.

Red light, green light

In an era of massive Shiba Inu and the success of play-to-earn games like Axie Infinity, the Netflix show-inspired Squid Game (SQUID) token looks like another insane competitor. In the end, many investors had their worst nightmares after tearing the carpet and causing them dizzying losses.

Maher summarized the damage:

“… At this point it is clear that the developers have just given up on the multi-million dollar ship, which means that at least 36,000 people have fallen victim to this scam. So how much money did the scammers make? We do not know the exact number. We know they made at least a few million dollars. “

In addition, he criticized the way mainstream media like the BBC covered SQUID’s shocking price hike, calling the game “play-to-earn” despite citing CoinMarketCap’s warning and how people would not withdraw money can.

The source: BBC

Red flag ignored

Maher listed a number of warning signs that he felt investors should have stepped back quickly. These include the very short uptime of the Squid Game website, poor website design, grammatical errors in the white paper, few references to gameplay, limited SQUID token sales, and communication restrictions on other websites.

The source: Look up ICANN

Maher also stated that he had found very little reasonable information about the developers. Additionally, he believes their photos could be AI-generated.

“… Any legitimate project will not knowingly restrict token sales. Simple red flags. Unless you’re 100% sure you can sell, don’t buy. “

Please not FOMO

It’s important to note that BscScan classified the Squid Game as a robbery at the time of writing.

The source: BscScan

Since the SQUID token works on Binance Smart Chain, Binance CEO Changpeng Zhao explain and also share some investment tips: “Please not FOMO”.

For his part, Maher said:

“So always do your own research, even if you feel like the FOMO is increasing because you’d rather miss a 5% return than risk losing 100% of your investment.”

However, it seems that the play doesn’t end there as journalist Colin Wu implies that Chinese crypto users are also FOMO over the game.

At the time of writing, the price of SQUID rose 74.03% to $ 0.499 in 24 hours. At its peak, the token was worth around $ 2,860.

Source: Coinmarketcap

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Minh Anh

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