Crypto Rug Pulls
Engadget recently ran a story on $SQUID and how its founders conducted a rug pull to the tune of an estimated $3.38 million. For those unfamiliar with $SQUID, it was the unsanctioned cryptocurrency launched in October whose owners would be able to play a forthcoming online game based on the Netflix series. The price rose to over $2,856. Now, at $0, investors are left with nothing and no recourse of action.
It’s not the first rug pull, where crypto developers intentionally abandon a project and run off with investors’ funds, and it will be far from the last. Investing in crypto can be highly profitable, but there’s a risk when investing. After all, it’s deregulated and highly volatile.
Here are some of the biggest rug pulls to date…
- Engadget: ‘Squid Game’ cryptocurrency collapses in a $3 million scam
- CyberTalk.org: DeFi cryptocurrency rug pulls (Amplyfi.money, UniCat, Thodex)
- Bybit Learn: Why Crypto Rug Pulls Happen in DeFi and How to Avoid It (Luna Yield, Thodex, Meerkat Finance, WhaleFarm)
- Cylynx: The Rise of Cryptocurrency Exit Scams and DeFi Rug Pulls (Thodex, Compounder Finance, Meerkat Finance)
- Bloomberg: Crypto Scammers Rip Off Billions as Pump-and-Dump Schemes Go Digital (Safetrade, Mooncharge, PlusToken)
Outside of some of the tips on avoiding a rug pull scam found in the above articles, here are some additional helpful links…
- FastCompany: What is a ‘rug pull’? ‘Squid Game’ coin scam highlights danger for crypto investors
- CryptoTips: What is a Rug Pull in Crypto?
- Nasdaq: Decoding Crypto: Top 25 Crypto Terms You Need to Know
