Duped by Squid crypto's quick buck scheme

What happened? Why did Squid crash? Let me try and analyze what caused the swift rise and fall of the Squid and more importantly, the learning for investors from this financial disaster.

The Squid cryptocurrency was created as the exclusive crypto of an online play-to-earn game called the Squid Game Project Play to earn games allow gamers to earn crypto and NFTs that can be sold on crypto exchanges for other cryptocurrencies or fiat currencies. The player needs to put up an initial investment to purchase the characters and items needed to play the game. This exclusive cryptocurrency for the Squid Game Project was the Squid token.

Although not affiliated in any way by the Netflix show of a similar name, it was designed to imitate the six rounds of games as depicted in the show. The game creators simply wanted to ride the wave of popularity of the Netflix show Players would be required to buy into the game by paying a pre-set price in Squid tokens and purchasing NFTS. These SFTs featured characters from real Netflix. That was the similarity.

In theory, the game developers were to get 10% off all Tees mused while the rest was pooled into a reward pool for the game's winners. However, the Squid cryptocurrency crashed even before the game went live, leaving investors holding the baby.

On October 1, the launch day, it was worth one penny per Squid on the crypto exchanges PancakeSwap and DODO. Just eight days after, it was trading at $2.22, while the cryptocurrency reached a capitalization above $174 million.

On the morning of November 1, the Squid was trading at the eye-popping value of over $2.860 per token. But a few hours later, a digital wallet dumped a huge amount of Squid tokens and cashed out millions of dollars.

Within no time, the value of the Squid crashed from $2,630 per token to $0. Just like that Squid was worthless, impacting over 40.000 Squid investors. The whole debacle, from launch to collapse, lasted just '1 day. It was staring everyone in their faces but greed is never good for our eyesight. A number of clues on Squid's website should have put investors on high alert. For starters, the website claimed to be in partnership with Netflix and Microsoft, a fact that was not corroborated by either company and which could easily have been fact-checked. Secondly, their white paper was strewn with ample spelling errors.

Finally, investors have been blocked from selling their Squid tokens in the open market unless the ratio of buyers to sellers was 2-1. Investors turned Nelson's eye to these deep red flags.

The great Squid pull" will be emulated by others. So, before buying a new cryplxcurrericy, rend its white proper thoroughly and perform due diligence on the founders. And remember to invest only the money you can afford to lose, not what you saved for your future.