The story of a SQUID investor who lost everything he owned is an example of the importance of being informed before investing wildly in a newly exited token.
A cryptocurrency investor living in Shanghai, whose real name remains anonymous, lost $ 28,000, representing his life savings, by purchasing the token. Squid Game (SQUID) named after the popular South Korean series Netflix “The squid game.” As well told DailyBitcoin, this Monday the token went from being worth USD $ 2,500 to falling to zero, after the project disappeared from the Internet.
Obviously, this investor is not the only one, and he probably was not the one who fared the worst, but he told his story – under a false name – to the medium CNBC. He preferred not to give his data because he lives in China, a country with an unclear position in relation to cryptocurrency investors.
History shows the importance of a proactive investment, of not going crazy for a boom and of what has been one of the most important advice of professional traders: not to put all your eggs in the same basket. That is, do not invest everything in the same currency or instrument.
Anxious for the FOMO
As reported by the investor, the first thing he did was a quick search for the currency in Google to determine if it was genuine or not. However, before reading all the stories about cryptocurrency, many of which warned about the legitimacy of the project, he made the decision to deposit his life savings in SQUID. That is to say, he was carried away by the impulse.
In this regard, he told CNBC:
“My rush to buy this token is because of a single thought that crossed my mind that Squid Game is very, very popular now, and their token must be popular now. <..> In this commercial space, everyone is it will rush and sometimes you feel FOMO ”.
There is talk of FOMO to anxiety about being disconnected from social networks and being afraid of losing something, including a good investment. The FOMO syndrome comes from the acronym ‘fear of missing out’.
With the US FBI and SEC
The investor told CNBC who has contacted him FBI and the Securities and Exchange Commission from the United States for your lost investment. But, despite efforts to contact US authorities, it appears that your options are limited as you are unable to take further action because you are unable to file a police report in your own jurisdiction.
Furthermore, he tried to contact the people behind the token, who obviously did not respond. He also contacted CoinMarketCap, property of Binance, who listed the coin on their website. However, the platform “was not responsible “ of your loss.
It is worth noting that although investors were able to buy the crypto, they were unable to sell it. However, a considerable number of people did not receive the warning in time. The coin SQUID peaked at $ 2,861 on Nov. 1 before falling to zero around 5:40 a.m. ET, according to statistics from CoinMarketCap.com.
At least $ 3.4 million from investors seem to have been taken for themselves by the anonymous founders of the token, based on transaction logs from BscScan.
The token of SQUID was not professionally audited
Express Finbold that doubts were raised about the viability of the developer in the first place, as the domain name was purchased only five days before evaluating the most basic audit of the project. However, the fact that the project Squid Game has passed an audit of Coinscope it does not imply that it has been adequately audited.
The website of Coinscope says:
“The Coinscope team does not guarantee that a project will not eliminate liquidity, sell the equipment supply or any other exit scam strategy. The information provided in this document through the audit of the respective project is for general information only and should NOT be used as a reason to invest in any independent project ”.
In particular, a professional token audit comprises a comprehensive analysis of the code by professionals to discover probable flaws in a smart contract, as well as an extensive exercise by an unbiased team of testers to find vulnerabilities and exploits of the system. As a result, the audit was very inadequate as it did not evaluate the audit at the experience level, it says Finbold.
As we already said, the website, which was hosted on SquidGame.cash, has disappeared, as have the scammers’ other social media accounts.
The investor didn’t die like most of the players on the TV series, but he lost everything in the game.
Version of DailyBitcoin
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