Squid Game (squidgametoken.vip)

In recent years, the cryptocurrency landscape has experienced a significant surge, attracting new investors while also witnessing a rise in crypto rug pull, fraud, and scams. We are all either experienced or familiar with the potential of cryptocurrency returns. This is the main reason today’s generations of investors, asset managers, as well as businesses are either investing in cryptocurrency or looking to invest in this rapidly surging financial industry.
However, there is also a dark side to this industry. Currently, the majority of investors lack knowledge, and as a result, scammers and fraudsters using rug pulls are cheating innocent investors in this newly growing financial industry.
In this article, we’ll get to know more about crypto rug pull, how it works, how to avoid it, and many more related things. So, read till the end for a complete guide. What is a Crypto Rug Pull? 
Crypto rug pull is a relatively new scam in the digital asset landscape that retail investors have been continuously experiencing in the past few years. In this scheme, scammers or fraudsters create fake cryptocurrency projects, attempting to attract new investors by promising substantial returns on their investments. Notably, these fraudulent projects look similar to legitimate cryptocurrency.
In this scenario, the scammers aim to attract a significant number of retail investors to the fake project. Initially, the project’s tokens performed well, aligning with the promises made to the investors. Subsequently, using this positive performance of their project, the scammers attract even more retail investors to the project. Once they found that the fake project had garnered a substantial amount of money from these retail investors, the scammers publicly sold all their tokens privately and suddenly shut down the project.
Following the shutdown of the fraudulent project, these scammers disappeared with all the funds they raised, leaving investors with worthless tokens which are also called rug pull tokens.
Also Read: <a href="https://news.todayq.com/these-6-fake-tokens-plunge-100-millions-of-losses/" rel="noopener noreferrer nofollow">These 6 fake tokens plunge 100%, millions of losses</a>
Example: Recently, retail investors fell victim to a rug pull involving<a href="https://news.todayq.com/rug-pull-alert-fake-xai-plunges-100-drags-real-xai-too/" rel="noopener noreferrer nofollow"> fake XAI tokens</a>, resulting in a 100% drop in the value of the XAI token. In this case, scammers created a fake token that looked similar to the real XAI gaming token, but as the real XAI token made its debut on Binance, the scammers silently swapped 2,077,982,891,807.9 XAI for approximately 219,516 $BSC-USD. Types of Rug Pulls 
There are different types of rug pulls that investors are experiencing in the cryptocurrency landscape. These are as follows:
Common types of rug pulls are:
Pump and Dump: In this, scammers artificially increase the value of a rug pull token through marketing and generating hype on social media, often with the help of influencers. Once the token price reaches its peak, these scammers secretly offload all their tokens, causing a sudden and significant price drop or crash.
Fake Project: Similar to the example above, scammers create aproject that looks similar to a legitimate one. Through marketing efforts, this fraudulent project attracts numerous investors and then disappears with the investors’ funds, leaving them hopeful that this token will again surge. 
Team Exit: In an exit scam, scammers attempt to convince investors to withhold from withdrawing funds or selling tokens by promising significant returns over an extended period. However, once the scammers reach a certain threshold of their investment value, they suddenly disappear, leaving investors unsupported and causing the collapse of the tokens.
Liquidity Pulls: In this type of rug pull, scammers extract all the tokens from liquidity pools, rendering the token’s value worthless and driving its price to zero.
Rug pull is also categorized into two types Hard and Soft rug pulls.&nbsp;
A hard rug pull occurs suddenly, resulting in investors losing all their funds in a short period. On the other hand, a soft rug pull happens gradually as scammers and exploiters quietly shut down their projects with fake promises, causing a slow decline. How to Identify Rug Pull? 
Investors need to understand the fundamental pricing principles of investing in this rapidly evolving cryptocurrency industry to safeguard against rug pull tokens. Before investing, it is crucial to identify potential scams, and here are some points to follow for self-protection:
Thorough Research: When investing in a newly listed token, ensure a thorough investigation of the project, including development teams, technology, roadmap, and collaborations. If any crucial information is missing or if red flags such as a lack of transparency or an unknown team are identified, it is advisable to withdraw from the investment, regardless of promises of significant returns.
Security Audits: Check for security reports to determine whether the project has undergone third-party security audits, as reputable projects often do. Examine the audit report for potential susceptibility.
Community Engagement: Assess the project’s presence on social media platforms or forums like X (formerly Twitter) or Medium. Active community engagement is a positive indicator of the project’s legitimacy.
Warning Signs: Be alert for excessive promotion of quick returns or any signs of pressure to invest. Identifying such warning signs can help investors make informed decisions and avoid potential scams. How to Avoid Rug Pulls? 
By following the above-mentioned steps, you can easily avoid potential rug pulls. Additionally, you can also check the following points:
<ul>
 <li>No Liquidity Locked.</li>
 <li>Limits on Sell Orders.</li>
 <li>Significant price movement is limited to investors or a limited number of token holders.</li>
 <li>If you find no external audit, immediately avoid the investment.</li>
</ul> Are rug pulls illegal? 
Yes, indeed, it is illegal. As scammers either dump all of their tokens, making them worthless, this scenario leads to millions or billions in losses for innocent retail investors.
Earlier, we witnessed the collapse of Thodex, a Turkish cryptocurrency exchange, marking one of the biggest rug pulls in the cryptocurrency landscape. In this rug pull, over $2 billion worth of cryptocurrency was stolen, making it one of the largest crypto exit scams in history. List of notable rug pull scams 
There have been several significant rug-pull scams, the cryptocurrency industry witnessed in the past few years. But here is the list of the top 4 notable rug pull scams:
OneCoin: A cryptocurrency Ponzi scheme led by Ruja Ignatova. In this scam, OneCoin collapsed, resulting in investor losses of over $4 billion.
Thodex: A Turkish cryptocurrency exchange that was hacked in 2021, leading to the theft of $2 billion worth of crypto from investors.
AnubisDAO: A DeFi project that made false promises of high returns; once their threshold limit was crossed, the project deployers drained the liquidity pool and vanished.
Squid Game Token: Inspired by Netflix’s “Squid Game” web series, this token attracted significant investors. However, the deployers disabled selling and disappeared with the investors’ money. Conclusion 
A crypto rug pull is a tricky scheme where scammers create fake cryptocurrency projects to attract investors, promise significant returns, and then disappear with the funds, leaving investors with worthless tokens. Common types include pump and dump, fake projects, team exit, and liquidity pulls.&nbsp;
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