Monetary fraud … encryption
To see how easily today’s world is fooled by new concepts like cryptocurrencies, blockchain technology, watch the birth, inflated a thousand times and quickly deflated.
Called an illustrative case because the name Squid Game is just one of many fraudulent elements that were given to this coin to eat after the famous Korean film of the same name. In fact, naming a name doesn’t change the scenario to fool people. If you see the Eternals movie popular, it is likely that an Eternals coin will be born in the future.
At the first sight of the duped person, Wired has a pretty in-depth article. Luke Hartford, an Australian engineer, oversees cryptocurrencies to find investment opportunities and get rich quick. One day in late October, he read a tweet from a reporter whose coin had just gone up 1,000% but still had the potential to go up another 200%, called Squid Game. At this point, the price of each Squid Game coin is 72 cents and that person is urging, “Buy it, buy it before it hits $ 1”.
One Bloomberg columnist wrote: “The whole story was so stupid that I couldn’t bear to write about it; If you lose money because of squid, you should come to my house and give me your wallet because you are no longer allowed to use the money. “
While it has nothing to do with the popular Netflix series Squid Game, Squid Game currency still finds a way to show players how more you play the more you make. Hartford is a veteran crypto player who has entered the field since 2017.
Despite his skepticism, the cryptocurrency cases that looked like jokes turned out to be skyrocketing prices, so he didn’t want to miss any opportunity. He carefully went to BscScan, which records all transactions on the Binance exchange, to read it carefully before making a decision. At the moment there are still a lot of people warning about Squid Game because no one knows where it came from, the price is rising so fast it’s incredible, especially the possibility of piracy of the name is too obvious.
Half believing, half doubting, Hartford decided to invest $ 300 to buy Squid Game, now each coin costs 90 cents and then leaves it to watch. Soon the price rose to $ 1, which gave him a 10% profit in an instant; then to $ 2.3 … Hartford said to Wired, “That night I just sat and watched the price go up and my stomach turned as my investment doubled or tripled in a matter of hours.” As Hartford woke up the next morning, the Squid Game coin had gone up to $ 5; His investment of $ 300 has now grown to $ 1,660!
But that same morning, Hartford spotted the first signs of anger: Lots of people took to Twitter to complain that the Squid Game couldn’t be sold. Many exhibitors have to purchase in-game items posted by Squid Game’s co-organizer before they can sell them. Hartford still doesn’t know if he was betrayed or if he was blown up.
The most obvious thing is that anyone can buy Squid Game coins but not sell them. Money keeps coming in without spending it, the price will definitely go up and at some point the organizers will run away with the money.
What reassured him was that the price of the Squid Game was still skyrocketing and the mainstream press was ecstatic to cover the Squid Game phenomenon. The weakness of the press is to continue reporting for readers without further investigation, as CNBC writes: Squid Game’s cryptocurrency has just risen nearly 2,400% in the past 24 hours.
The newspaper also featured a scene from the Squid Game movie and said the movie now features a co-branded cryptocurrency, the price of which has skyrocketed and is helping to generate up to $ 174 million in market value. Many impulsive people won’t read the “but” below, like the one where Netflix insists they have nothing to do with the coin.
Hartford decided to buy $ 50 worth of items in a related game to see if the Squid game would sell for money, but it didn’t work. His initial investment of $ 300 is now up to $ 200,000 as each Squid Game coin is now $ 600. The highest price this fraudulent coin fetched was $ 2,861 (meaning Hartford’s investment value is estimated at nearly $ 1 million). On November 1st, all of the $ 3.36 million real money people like Hartford were putting in Squid Game coins was suddenly withdrawn by the organizers, leaving them with a bunch of tokens, each of which is now back to zero Has cents.
From the inside out, a cryptocurrency expert says that anyone can spawn a cryptocurrency and embrace what gives it a liquidity rhythm. Coins named after dogs are a joke, from Dogecoin to Shiba Inu, that everyone thinks is about to die but is still pumped up.
But as obvious as the Squid Game coin and still cheating people into losing $ 3.36 million is surprising. Matt Levine, Bloomberg columnist, wrote, “The whole story was so stupid that I couldn’t bear to write about it; If you lose money because of squid, you should come to my house and give me your wallet because you are no longer allowed to use the money. “
Previously, Gizmodo listed the signs that enabled them to conclude that the squid game was a scam as soon as the price started going up. The first is to illegally use the name Squid Game; the second is to pretend that Elon Musk, the head of Tesla, blatantly supports the Squid Game coin; Third, the most obvious thing is that anyone can buy Squid Game coins but not sell them. Money keeps coming in without spending it, the price will definitely go up and at some point the organizers will run away with the money.
Gizmodo also criticized major newspapers such as the BBC and Business Insider for irresponsibly reporting the Squid Game coin’s appreciation, even though that coin’s flip was written in a flawed style. An investor in Shanghai heard about Squid Game and did a quick google scan to find out. When he saw attractive headlines like “2,400% Increase in 24 Hours” but refused to click the link to read the entire article, there were warning signs below, this man took all $ 28,000 of his savings, all lost.
Perhaps the only positive thing about this Squid Game coin is its caution about similar cryptocurrencies, a lesson that is likely to repeat itself over and over again when it comes to cryptocurrencies. .
Two types of exchanges DEX and CEX
With Squid Game Coin, it is advisable to learn through new concepts that appear in the field of crypto currencies or in general in the field of decentralized finance, often also referred to as DeFi. People buy and sell cryptocurrencies on two types of exchanges; DEX is a decentralized exchange and CEX is a centralized exchange. While CEX is organized by a company and has employees, DEX is completely automated and is controlled by algorithms and smart contracts.
A smart contract is a type of contract that is executed automatically. When party A wants to buy a service from party B and the two parties sign the contract, the money A pays for that service is blocked. After B has carried out the money service, payment is automatically made to B, otherwise the money is returned to A.
The Squid Game Coin is launched and traded on PancakeSwap – a type of DEX that runs on Binance’s blockchain platform. Because of this, Binance, the world’s largest cryptocurrency exchange, has announced that it will be looking for the Squid Game scammers.
According to Barron, theft is an emerging problem on Defi platforms. In the first seven months of 2021, more than $ 680 million in cryptocurrency was stolen, 76% of it from DEX exchanges. Since it is an automatic DEX exchange, there is no operator. So if an incident occurs, nobody is responsible for it. Just as PancakeSwap is really just a collection of algorithms and smart contracts, nobody has their hair down.