When Bernard heard about a keepsake named after the democratic South Korean Netflix series “ Squid Game, ” which chronicles the lives of cash-strapped adults who play in a madly tournament for a big pot, he did a flying scan on Google to see if the coin was legit. After catching headlines – but before reading the broad articles, many of which warned of some red flags around the project – he decided to invest his stallion biography savings of $ 28,000 into SQUID, a mint that billed itself as a “ play-to-earn ” cryptocurrency. On Monday, the token hit a high of just over $ 2,860, before plummeting to closely nothing, according to CoinMarketCap. “ My rush to buy this token is for a single idea that went into my genius that ‘Squid Game ‘ is very, identical popular now, and its keepsake must be popular now, ” said Bernard, who lives in Shanghai, and asked to be identified only by his English first name because trade in cryptocurrency is of questionable legality in China. “ It ‘s a tragedy. I do n’t know how to recover my passing. ” Bernard tells CNBC that he supports his family and is now worried about how to pay his bills. transaction records from BscScan appear to show the token ‘s anonymous creators collected least $ 3.4 million in investor funds . The crypto ecosystem is overabundant with alleged “ rug pluck ” schemes wherein token founders abruptly abandon their project and take investor funds with them by swapping the project mint for cash. “ squid Game Dev does not want to continue running the project as we are depressed from the scammers and is overwhelmed with tension, ” Squid developers posted Monday in their Telegram duct, which nowadays has more than 89,000 members. The token ‘s white wallpaper and web site have since disappeared, though archive copies of its official landing page and white paper are still on-line. chirrup has temporarily restricted its account due to “ fishy activeness. ” The creators did not respond to multiple emails that CNBC sent to the addresses listed on the vane site. Bernard says he has reached out to the FBI and the SEC about his lost investment. He has besides reached out to the team behind the nominal, arsenic well as Binance-owned CoinMarketCap, which listed the mint on its web site, both of whom “ did not take province ” for his loss. Bernard, who says he has a lot of experience in crypto and computers, blames media outlets for his investing in SQUID angstrom well. He is n’t alone. Others have taken to Twitter to say that giving any oxygen to meme coins like this one functions as an implicit sanction. “ In this trade space, everyone will rush, ” said Bernard, “ and sometimes you feel FOMO. ” That sense of FOMO, or the fear of missing out, is a common opinion among crypto traders who invest in early-stage altcoins, tidal bore for a chance at adult and quick returns on their investment .
‘Some have a shot at going nuts’
Saurabh Dubey has been concern in cryptocurrencies since 2016. He now works for an accountancy firm in the U.S., and in his free time, he regularly day trades new altcoins.
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just past midnight each day, Dubey looks at new coins being listed on CoinMarketCap and CoinGecko, trying to identify trends based on the charts. He typically places bets of around $ 100 on coins that he thinks show predict in their initial price movements. “ Some have a shoot at going nuts, ” he said. Dubey says that he used the proceeds from a holocene successful count on another meme mint to invest $ 250 into SQUID. “ I thought I ‘ll play with house money, ” said Dubey. This was when SQUID was trading at about 4 cents – well before all the media hype began. Dubey says he invested in SQUID because it was the second-ranked token on CoinMarketCap ‘s list of the most recently listed coins. “ I picked it up because it already had some amount of volume and already had some come of derive, and if you look at the graph, you will see that the chart mimics the start of how SafeMoon got started, ” said Dubey, referring to an altcoin launched in March that appreciated promptly and is still being traded. He noted that his investment was a gut move more than anything else. “ It was n’t scientific. ” But then Dubey started to notice all the red flags, many of which he hoped were not that adult a cover. “ The biggest iris was that it never had a dip, ” explained Dubey. “ Every coin has to have a dip. There is no manner a coin goes up constantly for five days … The alone thing that looked like a dunk was when it stayed at the like charge. ” The horizontal surface of price admiration was another big concern. “ When it hit $ 1, I was like, ‘Okay, 20x is reasonable. That can happen. ‘ When it got to $ 10, that ‘s when I started thinking there ‘s something off, ” he said. “ Most coins that actually have a product behind them are barely able to reach that point, ” continued Dubey. Another loss pin : none of the nominal ‘s founders could be found on LinkedIn, plus its web site and white paper were filled with grammatical and spell errors. ultimately, Dubey ‘s exposure was limited, but investors like Bernard who gambled all their savings on this coin want the creators behind the project to be held accountable. Bernard, who has been proactive in reaching out to U.S. authorities, says that his hands are tied to take any far action, because he ca n’t file a report with local anesthetic police. “ In China, it ‘s not so legal to trade cryptocurrencies, ” Bernard shared with CNBC.
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