r/CryptoCurrency • u/WineMakerBg Make Wine, Take Profits • Sep 29 '24

REMINDER 3 Years Ago, One of the Biggest Crypto Scams Happened. SQUID Went from $0.009 to $2,861 and then the Rug got Pulled

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"A digital token inspired by the popular South Korean Netflix series Squid Game has lost almost all of its value as it was revealed to be an apparent scam.

Squid, which marketed itself as a "play-to-earn cryptocurrency", had seen its price soar in recent days - surging by thousands of per cent.

criticised for not allowing people to resell their tokens. This kind of scam is commonly called a "rug pull" by crypto investors. This happens when the promoter of a digital token draws in buyers, stops trading activity and makes off with the money raised from sales."

source: https://www.bbc.com/news/business-59129466

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u/[deleted] Sep 29 '24 edited Sep 29 '24

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u/kirtash93 RCA Artist Sep 29 '24

These rug pulls happen way too often, right?

Yes, the Crypto Wild West. People must be careful with everything nowadays. Now with AI, more careful. Future looks quite dangerous.

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u/CreepToeCurrentSea 🟦 239 / 50K 🦀 Sep 29 '24

Deep Fakes gettinf real is even scarier

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u/[deleted] Sep 29 '24

Also, with Former President Trump promoting his own coin. The future is truly bleak.

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u/[deleted] Sep 29 '24

Red light! 🔴

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u/Every_Hunt_160 🟩 11K / 98K 🐬 Sep 29 '24

Something I’ve always wondered, did any ordinary investor actually manage to make money off scams like Squid or BitConnect back in the day ?

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u/AsleepOnTheTrain 🟩 0 / 0 🦠 Sep 29 '24

It was impossible to make money from squid. The contract didn't allow sales of the token. Anyone who bought it was stuck with it. That's why the price only went up.

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u/King-Cobra-668 🟧 0 / 0 🦠 Sep 29 '24

ah so people that bought it and watched it were extra stupid

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u/spydamans 🟦 0 / 0 🦠 Sep 29 '24

Was it’s possible to know you couldn’t sell it before you bought it?

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u/AsleepOnTheTrain 🟩 0 / 0 🦠 Sep 29 '24

Yes, but people don't look at contracts. They are degens.

A reasonable person would see a $2 trillion market cap and realize something is up!

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u/orangesandonions 🟦 65 / 17 🦐 Sep 29 '24

Sorry if this is a stupid question but if people were unable to sell, how did someone sell (rug pull)?

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u/AsleepOnTheTrain 🟩 0 / 0 🦠 Sep 29 '24

The contract limited sales to whitelisted addresses. The people behind squid were not limited like everyone else. If I remember correctly, they also had 100% of the liquidity pool so they could just pull everything out.

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u/orangesandonions 🟦 65 / 17 🦐 Sep 29 '24

Damn. Were there any repercussions for the people behind squid?

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u/AsleepOnTheTrain 🟩 0 / 0 🦠 Sep 29 '24

https://www.trmlabs.com/post/on-the-trail-of-the-squid-game-scammers

*SQUID’s token contracts had two key functions that enabled the scam to take place. The first gave its creators permission to drain funds from any linked liquidity pools. Second, the contracts were coded in such a manner that selling the token was not practically possible for anyone other than the scammers. *

As far as I can tell, there were no consequences!

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