Rug Pull is a term used in Crypto and NFT Markets describing scam, where the project owners (mostly anonymous profiles) pull the carpet from under the investors feet, basically leaving with the money. Of course they cannot be found as the crypto currencies preserve from real identification.
To avoid being scammed, we invite you to read How to Detect Crypto Scams and Rug Pulls in our article. You have to Do Your Own Research, be cautious and read our below article on the Latest Rug Pulls.
SquidGame Cryptocurency Scam ($SQUID)
Surfing on Netflix’s popular TV show SquidGame, a developer has issued a SquidGame project to develop an online game and offered a $squid game token for sell to acquire the rights to play this game.
It encountered a tremendous enthusiasm and saw its share rates skyrocket from $38.19 to $2,856 in about 5 hours. And then it lost 100% of its value in 5mn. It’s during these 5mn that the rug was pulled.
For sure the robbed individuals are now left with nothing. We can only hope they have not put all their eggs in the same ($SQUID) basket. But this event is casting a negative shadow on the market platforms, here CoinMarketCap, who are hosting these Dodgy Crypto Projects.
Official announcement the CoinMarketCap to its Crypto Clients: We have received multiple reports that the website and socials are no longer functional & users are not able to sell this token in Pancakeswap. There is growing evidence that this project has rugged. Please do your own due diligence and exercise extreme caution. This project, while clearly inspired by the Netflix show of the same name, is NOT affiliated with the official IP.
Will there be some kind of regulation or auto-control. We could imagine that the platform would demand from their content creators to register with their real passport identities to improve accountability and traceability in case of rug pulls! Will SEC (the Security Exchange Commission) have a look into future regulations, if even possible ?
Estimated Rug Pull value of $2.1 million ! Scam early warning signs: anonymous owners, no possibility to resell tokens, bad spelling and grammar in website, no comments allowed on social media platform… Before total vanishing in thin air!
We recommend you to watch this excellent video full of humor from Patrick Boyle (hedge fund manager, a university professor and a former investment banker).