Sending out a crypto warning

The cryptocurrency space has matured significantly since the last wild west of a bull market of 2017, however in some respects there are still certain areas that act like an adolescent teenager. Just recently there was much sniggering amongst the crypto faithful at the blatant 'rug pull' of Squid Game coin, a meme cryptocurrency token that was effectively launched purely to profit off of the back of the popular Netflix show of the same name. This is one trend in the cryptocurrency space that new investors should be aware of, so in this article I want to send out a crypto warning as falling foul of these shenanigan's is shortsighted and will ultimately get you wrecked.

Squid Game coin launched on the decentralised exchange Pancake Swap and within a few days it went from $0.01 to momentarily touch $2,861.80 (a modest 28,609,900%) and then plummeted to back down to zero on the morning of 1 November after the promoters behind the 'project' initiated what is known as a rug pull effectively selling out for a more liquid cryptocurrency and then probably into real-world fiat money. Regardless of what exit route these scam artists took this does nothing to forward the efforts of many hard working and honest people in the space and equally disillusions many investors who are new to the space.

Shortsighted naivety?

One would think however that this would be the death knell for the meme coin, however like the embattled main character in the series, it is truly remarkable (or is it just blind stupidity?) to see that the token is down but as of yet not out. Astonishingly since the rug pull event took place it has clawed its way back and rocketed more than 800 per cent in 24 hours to touch $0.80. So unbelievably some people are still willing to risk putting their hard earned money into something that was so blatantly abused by the promoters.

The rebound is obviously not much consolation for those who bought at the top, however I guess they can all but dream. But the story of Squid Game coin – not least the dogged determination to ‘buy the dip’ mentality – seems to highlight so much more about some of the willing participants in the cryptocurrency space: in essence one could argue that we're looking at a religious as much as an economic phenomenon.

The 3rd Law