How Round 6-inspired cryptocurrency made investors lose everything
You should know that not all assets are worthwhile in the cryptocurrency market. Of the more than 8,000 existing cryptos, few have fundamentals or actually offer a disruptive solution. For the rest, most of them are nothing more than purely speculative schemes or fraudulent projects. A recent case is that of the “digital currency” SQUID. do not you know what I'm talking about?
SQUID is a digital coin inspired by the Netflix Round 6 series (or Squid Game , in English) that was created on October 26th. SQUID was worth US$ 2,861 (R$ 16,200) on November 2nd, but currently, it is being traded at US$ 0. Do you know why?
Its creators withdrew all their valuables at the time of the asset's rally, effectively stealing around US$2.1 million (R$11.9 million) from investors. This type of scam is called "carpet pulling": when cryptocurrency creators withdraw their shares for real money, quickly devaluing the asset's value.
–
Download our app for iOS and Android and follow the main technology news in real time on your smartphone.
–
Sounds absurd, doesn't it? But know that the cryptomarket is full of scams like that…
SQUID was announced as a token that could be used for a new online game inspired by the Netflix series – which tells the story of a group of people forced to play deadly children's games for cash. The game was supposed to air this month.
Whoever found this cryptocurrency cool, without caring about any foundation, bought it. The result: he saw his money multiply 71544 times and then drop to zero – in a matter of minutes.
However, cryptocurrency experts have warned of several signs that SQUID could be a scam. In the world of cryptocurrencies, the word “scam” is used to refer to fraudulent and misleading projects, which are intended only for financial gain).
The main sign was that people couldn't sell crypto after buying it. Furthermore, it was possible to notice several spelling and grammatical errors in the cryptocurrency white-paper (document describing the project for investors) and on its website (which simply disappeared). The profiles that advertised crypto on social networks are also gone.
So be careful when investing in the cryptocurrency market. If you're not well allocated, you can lose your entire investment in a matter of minutes, as happened to someone who joined the SQUID bandwagon.
Stay tuned: these 3 coins are among the biggest in the world, but "they're just a scam"
Caution. There are apparently fraudulent designs among the largest cryptocurrencies in the world. See some of them:
- Ripple (XRP);
- Dogecoin (DOGE);
- Shiba Inu (SHIBA).
The person who identified this characteristic was André Franco: an analyst responsible for the Intelligence and Research of Cryptoactives and Blockchain department at Empiricus, one of the largest analysis houses in Brazil.
Exponential Coins. There are more than 33,000 people following the recommendations he gives about which coins to buy
and when to sell them (Image: Disclosure/Empiricus)
André already has over 10 years of experience in this market. He is responsible for indicating serious investments in cryptocurrencies to his followers and also warning them to avoid the holes. Its portfolio of digital assets Exponential Coins has accumulated +4.285% profit since 2017, with indications from the most promising cryptos in the market ( find out how to access one of them here ).
In the analyst's opinion, the crypto market has been irrational and has an appetite for the famous '"shitcoins". That is, unsubstantiated cryptocurrencies marked by a community of investors who gather to speculate on them.
See 3 famous cryptocurrencies that should be out of your wallet, in André Franco's vision:
1. DOGECOIN
The most famous shitcoin is the Dogecoin (DOGE), coin that emerged in 2013 with the aim of being solely a meme. Yes: the asset is of no use. And despite that, what was a joke now has more than 33 billion dollars in market value. Like?
Simple: speculation.
DOGE is known for its abrupt highs for random reasons (most of them tweets from billionaire Elon Musk). Those who joined the game some time ago managed to surf the wave of these highs… On the other hand, this speculative movement harms those who arrive late for the party, says André Franco.
This is not the only case of market irrationality. Another currency that has been in the spotlight lately is the Shiba Inu (SHIBA).
2. SHIBA INU
The digital token was also born as a joke, with the purpose of competing with Dogecoin (DOGE). The asset is also experiencing random upswings due to tweets from Elon Musk and community pressure, which has led to it amassing more than $25 billion in market value.
Floki Frunkpuppy pic.twitter.com/xAr8T0Jfdf
— Elon Musk (@elonmusk) October 4, 2021
This tweet that Elon Musk posted from his Shiba Inu dog made SHIBA value 136.4% in 2 days.
In André Franco's opinion, Shiba Inu could be directly involved in a scam scheme with investors. Like Dogecoin, Shiba Inu also started as a joke, but ended up going too far, in the cryptanalyst's assessment. Today, more than 50% of SHIB tokens are in the hands of a single investor.
"Shiba has the purpose of enriching breeders and leaving investors to the sidelines", explains André Franco.
3. XRP
The crypto XRP is the 7th largest in the world in market value… But it is holed, according to André Franco. Token creator Ripple owns more than 60% of the XRP offering. And there's more:
The US Securities and Exchange Commission identified that Ripple was pushing bullish news about XRP to spark increased retail interest in buying it, as Ripple executives poured millions of XRP into the market.
Thus, a cycle has been feedback: there is a lot of XRP in the market and a gigantic buying appetite with sensational news about the asset, causing it to rise.
In this game, however, only whoever arrives first wins with the coin – in this case, the groups of entrepreneurs and investors who pump up its price.
“Meanwhile, those who are late for the party tend to lose out. This structure is very reminiscent of the dreaded financial pyramids”, says the analyst.
XRP, SHIBA AND DOGE ARE NOT WORTH IT – BUT THERE IS A CRYPT CLASS THAT ANDRÉ FRANCO BELIEVES WILL BE PROMISING IN 2022: FIND OUT WHICH
But in the face of all these dubious coins on the market…
How to identify safe cryptocurrencies to invest? Stay tuned for these tips:
André Franco warns his readers to never get carried away by promises of quick wins and miraculous strategies.
“Opting for the quickest route can work once or twice, which will give you more confidence, until such time as you can be very exposed, very confident and break down. Keep your investments focused on the long term, choosing assets with good projects and teams”, advises André Franco.
Empiricus, one of the largest financial analysis houses aimed at individual investors, understands that it is worth having a small portion of your equity invested in crypto.
However, it is necessary to be diligent when choosing the right cryptoactives. You don't need to buy “shitcoins” to earn money. There are a series of serious projects, with fundamentals, indicated by André Franco that, by the way, are delivering even greater returns.
An example is the asset AXS, indicated by André to the subscribers of Exponential Coins in January of this year. The cryptocurrency comes from a game, Axie Infinity. But unlike SQUID, the game is real and serious.
It is not by chance that the asset has appreciated more than 28,000% since January. See for yourself in the chart below:
And since then, and the investors who listened to André, they won a lot of money and were able to send messages like these:
Here's a (safe) investment recommendation for you:
Of course, mining a promising asset like AXS takes a lot of time and dedication. You can do this yourself by studying the asset in depth, reading its entire white paper and analyzing whether its economic fundamentals make sense.
But you also have another option: to outsource this heavy lifting and receive only the (ready) recommendations and analysis. And André Franco wants to help you with that.
Like?
André wants to reveal, for free, one of the new cryptocurrencies on his list , which has enormous potential for recovery — on the level of the AXS.
Whenever he finds an opportunity, he calls out to his followers and new ones interested in seeking their fortune in cryptocurrencies. In the last call, he warned investors about a set of cryptocurrencies (smartcoins) that could transform a small amount invested into more than one million reais.
To access the next indication, it's simple. Just put your phone number or email on the button below, and you will be notified first hand the exact moment when André will reveal the cryptocurrency:
I WANT TO RECEIVE THE NEW CRYPTOCURRENCY NOTIFICATION OF ANDRÉ FRANCO FIRST HAND
Read the article on Canaltech .
Trending at Canaltech:
- What is the difference between sea and ocean?
- 7 scary animals that don't even look like the works of nature
- The Earth turns fast. So why don't we see stars as blurs in the sky?
- This astronaut could have been the first to "drown" in space; understand
- Giant and rare owl makes its first public appearance in 150 years
Read more: https://coinrevolution.com/how-round-6-inspired-cryptocurrency-made-investors-lose-everything/
Text source: CoinRevolution
