Squid Game lovers got scammed as fake token Drops 99%

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As a seasoned crypto investor with scars from past battles etched deeply into my financial portfolio, I can confidently say that the latest SQUID token fiasco is a stark reminder of why we should always do our due diligence before jumping onto the hype train.

In much the same way that fans of Netflix’s Squid Game are eagerly awaiting Season 2 and its cryptocurrency themes, fraudsters have seized this opportunity, introducing a bogus ‘Squid Game’ token onto the Base blockchain. The deceptively titled SQUID token has plummeted by 99% in classic pump-and-dump style.

Peckshield cautioned everyone on Twitter, however, their warning came too late as within merely three hours, the token had completely depreciated in value.

The scam was orchestrated as a pump-and-dump scheme, with the deployer holding the majority of the token supply to manipulate the market. Investors who bought into the hype have been left with significant losses.

A pump-and-dump strategy is a type of deceptive practice, in which swindlers inflate the value of an investment (by creating buzz or excitement) to artificially boost its price (pump), and subsequently sell off their shares at the peak (dump). This quick sell-off causes the price to plummet, leading unsuspecting investors who bought in during the hype to experience significant financial losses.

Currently, as I’m typing this, the value of the newly minted SQUID token has seen a 100% decrease from its initial price, dropping down to $0.0111255.

The fraudulent activity occurred in conjunction with the excitement surrounding Squid Game Season 2, Episode 3. In this episode, Character Number 333, Lee Myeong-gi, confronts guards over his wallet and phone. It’s later disclosed that he operated a YouTube channel named “MG Coin,” which endorsed a cryptocurrency that ultimately failed, resulting in a financial loss of approximately $15.2 billion for him.

It’s possible that scammers took advantage of the public interest in the TV show by linking a fake cryptocurrency to its storyline, making it seem legitimate. However, this digital token was not actually associated with the program itself. Instead, it profited from the buzz generated by new episodes.

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2024-12-27 21:45